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....
Read the full article on Seeking Alpha
For further details see:
Sunnova: Strong Growth But Needs More Scaling To Become Profitable