NOVA - Sunnova: Strong Growth But Needs More Scaling To Become Profitable
2024-05-15 08:30:57 ET
Summary
- Sunnova Energy International is benefiting from a short squeeze, with a short interest of 40 million shares making up a third of the share count.
- The company provides solar energy services to over 440k customers in the US and growing its revenues nicely even though it will take a while to be profitable.
- The company has a lot of debt (11x its revenues) but most of the debt belongs to its financing arm, which provides financing to customers. Still doesn't make it risk-free.
- The company's full year guidance calls for profits but it's an adjusted metric that includes tax credits and excludes items so be cautious.
Sunnova Energy International ( NOVA ) is a solar energy company whose stock has been benefiting greatly from this week's short squeeze as the stock had a short interest of 40 million shares prior to this week which makes up almost a third of the company's existing 122 million shares (as of last quarter). In this article, we'll cover this stock in terms of business, operating metrics, valuation and risks....
Sunnova: Strong Growth But Needs More Scaling To Become Profitable