NASDAQ:SPWRA
$19.54
(2/9 12:30PM)
+2.7%
| Open | $19.38 |
Mkt Cap | $1.0 Billion |
| High | $19.65 |
52Wk High | $34.00 |
| Low | $19.08 |
52Wk Low | $18.92 |
| Volume | 701,993 |
Avg Vol 10D | 2.2 Million |
A Word Of Caution
The Ockham Research Team has placed an alert on this security because there have been significant developments associated with SunPower Corp. A (SPWRA). Eventually, these externalities may have an impact on our valuation but these recent events have not yet been fully factored into our analysis.
Please take a moment to look at the RazorWire feed on the right hand side of the report. Each mention of SunPower Corp. A on business television or influential blogs will be displayed to the right of the report. This should help bring you up to speed on any major issues they are facing right now.
Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect these significant factors surrounding this company as our data sources are still being updated. This alert shall remain in effect until the situation surrounding this security normalizes substantially.
Therefore, (and as always), check additional sources and available information regarding SPWRA before making an investment decision.
Ockham's Rating/Recommendation Summary
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SPWRA Revenue
As a value investing shop, we are interested in seeing how SPWRA's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 6 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 11.16x and the low end of the range at 3.99x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for SPWRA of 1.38x is well below its normal historic Price to Sales levels. At a price of $19.65, SPWRA is 82% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
SPWRA Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of SPWRA, Ockham views their current Cash Earnings as significantly below its historical average multiple of Cash Earnings. Looking at the last 5 years we can get a good understanding of what investors have grown to expect from SPWRA. For example, SPWRA's Cash Earnings ratio per share has fluctuated between 21.62 and 61.80 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where SPWRA is with respect to prior business periods.
So with SPWRA's current price (latest close of $19.65) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, SPWRA is 72% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with SPWRA.
SPWRA Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely. Although they may currently pay a dividend, our data source has no historical record of it for SPWRA. Since we cannot apply our historical trend analysis to dividends for SPWRA we have a neutral score for the dividend portion of our analysis.
Closing Bell: Will SPWRA Test Its 52-week High?
Stick with it or dump it? Closing Bell discusses what an abnormally high price means for SPWRA's investors. Take note of Ockham's valaution on the stock as well.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SPWRA has been less covered in the news compared to the rest of our universe of stocks. At Ockham, our stance is currently Greatly Undervalued, which means we believe that value investors will really be interested in this stock at the current price level. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe SunPower Corporation -Shs -A- will perform just about the same as the index.
“… SUNPOWER up 3. 6%, ja solar 6. 6%, canadian solar 1. 2%. New 52-week highs for starbucks and sears. Starbucks up 2. 3%, sears was up 7% at one point. Pacific sunware up 3. 7%. …”
Mad Money: Whats Happening with SunPower Corporation -Shs -A- Now?
The latest news on Mad Money in regards to SPWRA come through on RazorWire recently.
Doing some power tool, some people told me it might be worth $5 million, one day. Maybe $800 million. I'm hearing people saying may be worth a billion. It sounds to me it could be another SUNPOWER. >> SUNPOWER when we punit out it was 14 and change per share. I liked the environment stuff. Our shareholders like it, so we start another one called cypress envirro systems. Their job is to save energy. Making you more efficient. Run on air power, pneumatic
“… are. I liked the environment stuff. Our shareholders like it, so we start another one called cypress envirro systems. Their job is to save energy. Making you more efficient. Run on air power, pneumatic …”
See Who is Talking About News from SPWRA on Mad Money
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on SPWRA from Mad Money.
A terrific history of an the best of any other company, of other concepts. Creates new businesses and spins them off and exactly what it did for you with SUNPOWER. A gain from its ipo price to its peek. Over the same period though cypress semi stock's gone from $2.53 to 9 bucks. 259% gain. These are big percentages. I want you in this kind of I think that we're in for a repeat perform archs the SUNPOWER experience. Cypress is incubating a new all kinds of wireless devices which helps save energy. Wireless thermostats that can be controlled remotely and monitored temperature from far. Wireless gauge readers, wireless battery monitors. This could be huge. Stay terrific company with right now a not so terrific stock and automatic I think that's just a
“… e from $2.53 to 9 bucks. 259% gain. These are big percentages. I want you in this kind of I think that we're in for a repeat perform archs the SUNPOWER experience. Cypress is incubating a new all kinds of wireless devices which helps save energy. Wireless thermostats that can be controlled remotely and monitored temperature from far. Wireless gauge readers, wireless battery monitors. This could be huge. Stay terrific company with right now a not so terrific stock and automatic I think that's just a …”
SunPower Corporation -Shs -A- (SPWRA) Discussed on Fox Business's Happy Hour
SunPower Corporation -Shs -A- is in the news. Find out how this impacts SPWRA trading on Ockham Research.
Eric: "fox business alert." solar power companies trading lower across the board. Ldk solar and SUNPOWER all dipping into the red after-hours. Industry bellwether, first solar leading them down after posting revenue below first solar dropping 15% as from solar to wind, andy cruise founded two decades southwest wind power. He is at a solar power conference in anaheim, andy, thanks for joining us.
“… solar to wind, andy cruise founded two decades southwest wind power. He is at a solar power conference in anaheim, andy, thanks for joining us. …”
SunPower Corporation -Shs -A- (SPWRA) Discussed on CNBC's Street Signs
SunPower Corporation -Shs -A- is in the news. Find out how this impacts SPWRA trading on Ockham Research.
Yesterday, profit-taking here. The buzz off of dan brown's new book breaking adult fiction sales record, 1 million books sold, day one. Amazon, even though they discounted it 46%, a I want to point out the solar sector here. First solar and SUNPOWER, barkley's raised the targets on both. Both by about 3%. Finally, the story for after the close, palm. Down 2.7%, erin. They don't give guidance. 24 cents a share of a loss. The ranges are huge. A couple firms have come out in the last couple days saying they think presales will disappoint back to you. >> thank you very much, brian shackman. >>> housing stocks are among the biggest losers. Why in the headlines seem so good on new housing starts and
“… ley's raised the targets on both. Both by about 3%. Finally, the story for after the close, palm. Down 2.7%, erin. They don't give guidance. 24 cents a share of a loss. The ranges are huge. A couple firms have come out in the last couple days saying they think presales will disappoint back to you. >> thank you very much, brian shackman. >>> housing stocks are among the biggest losers. Why in the headlines seem so good on new housing starts and …”
SunPower Corporation -Shs -A- (SPWRA) Discussed on CNBC's The Call
SunPower Corporation -Shs -A- is in the news. Find out how this impacts SPWRA trading on Ockham Research.
As 30 cents, cutting the prices on some other of the easier to make drinks there, as you look at this chart of starbucks, one take a look at solar stocks, though, because most are getting hammered. First solar, 3.5% selloff. Evergreen, SUNPOWER weak. Energy conversion weak. Skref reese has lowered the price targets on all of these stocks, downgraded them as well. Big pricing issues. Supply and demand issues, as well. From the solar companies. And mandy, it is definitely taking a toll on those solar names today. Back to you. >> sure looks like it. No sunshine out for them. Fed chief ben bernanke about an hour ago in jackson hole, wyoming says we are emorninging from a global economic steve liesman joins us live with all of the details. Yeah, the fed chairman giving some guardedly optimistic comments on the economy.
“… gy conversion weak. Skref reese has lowered the price targets on all of these stocks, downgraded them as well. Big pricing issues. Supply and demand issues, as well. From the solar companies. And mandy, it is definitely taking a toll on those solar names today. Back to you. >> sure looks like it. No sunshine out for them. Fed chief ben bernanke about an hour ago in jackson hole, wyoming says we are emorninging from a global economic steve liesman joins us live with all of the details. Yeah, the fed chairman giving some guardedly optimistic comments on the economy. …”
SunPower Corporation -Shs -A- (SPWRA) Discussed on CNBC's The Call
SunPower Corporation -Shs -A- is in the news. Find out how this impacts SPWRA trading on Ockham Research.
So we'll see what happens. But, you foe, that's probably the most expensive solar stock you can own, a market cap of $15 whereas stocks like sun tech and SUNPOWER have market caps in between 2 and $3 billion. >> you know, vince, you bring up a very interesting point on investing in some of these alternative energy plays, and you say, look to some of the
“… sting point on investing in some of these alternative energy plays, and you say, look to some of the …”
SunPower Corporation -Shs -A- (SPWRA) Discussed on CNBC's The Call
SunPower Corporation -Shs -A- is in the news. Find out how this impacts SPWRA trading on Ockham Research.
We're bringing in in ken landis from alltech renewable energy what's your take on this? What's your pick? >> well, we like SUNPOWER, and I know we've heard you talking a little bit about first solar. First solar is going to be a volatile stock in the next couple of days, because they're having a big analyst day today. Happens to be in las vegas.
“… couple of days, because they're having a big analyst day today. Happens to be in las vegas. …”
SunPower Corporation -Shs -A- (SPWRA) Discussed on CNBC's Mad Money
SunPower Corporation -Shs -A- is in the news. Find out how this impacts SPWRA trading on Ockham Research.
>> caller: hey, jimmy. Give me a boo-yah! >> wow. Wow, very bellacose west coast what's your mind there, partner? >> caller: SPWRA. >> no, no, we're done with the whole solar thing p it's got to be -- I just saw bp solar some outfit said today they're suspending the production -- cutting production. There is absolutely no way we're
“… pending the production -- cutting production. There is absolutely no way we're …”
SunPower Corporation -Shs -A- (SPWRA) Discussed on CNBC's Squawk On The Street
SunPower Corporation -Shs -A- is in the news. Find out how this impacts SPWRA trading on Ockham Research.
Solar stocks were on the move. They're all on the move lower first solar, down 17% on the lower guidance. And other stocks are selling off in sympathy. SUNPOWER down almost 9%. I forgot the name of this company. I'll get the name when I see you next time. Evergreen solar is down 3 1/2% >> speaking of energy, we've got
“… Evergreen solar is down 3 1/2% >> speaking of energy, we've got …”