Fact based stock research
Sunrun (NasdaqGS:RUN)
US86771W1053
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Sunrun stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 6 (worse than 94% compared with investment alternatives), Sunrun (Electr. Components & Equipment, USA) shares have lower financial characteristics compared with similar stocks. Shares of Sunrun are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives), and are riskily financed (Safety Rank of 1, which means above-average debt burdens) but show above-average growth (Growth Rank of 63). ...read more
RECOMMENDATION: A Combined Rank of 6, is a sell recommendation based on Sunrun's financial characteristics. As the company Sunrun shows low value with an Obermatt Value Rank of 41 (59% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 63% of comparable companies (Obermatt Growth Rank is 63). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 1 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Sunrun, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Electr. Components & Equipment |
| Index | Electromobility, Diversity USA, Solar Tech, NASDAQ, S&P MIDCAP |
| Size class | Large |
28-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Sunrun
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 30 |
|
53 |
|
35 |
|
41 |
|
| GROWTH | ||||||||
| GROWTH | 30 |
|
77 |
|
23 |
|
63 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
4 |
|
4 |
|
1 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
47 |
|
25 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
39 |
|
1 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 6 (worse than 94% compared with investment alternatives), Sunrun (Electr. Components & Equipment, USA) shares have lower financial characteristics compared with similar stocks. Shares of Sunrun are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives), and are riskily financed (Safety Rank of 1, which means above-average debt burdens) but show above-average growth (Growth Rank of 63). ...read more
RECOMMENDATION: A Combined Rank of 6, is a sell recommendation based on Sunrun's financial characteristics. As the company Sunrun shows low value with an Obermatt Value Rank of 41 (59% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 63% of comparable companies (Obermatt Growth Rank is 63). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 1 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Sunrun, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 30 |
|
53 |
|
35 |
|
41 |
|
| GROWTH | ||||||||
| GROWTH | 30 |
|
77 |
|
23 |
|
63 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
4 |
|
4 |
|
1 |
|
| COMBINED | ||||||||
| COMBINED | 2 |
|
28 |
|
1 |
|
6 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 41 (worse than 59% compared with alternatives), Sunrun shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Sunrun. Price-to-Profit (also referred to as price-earnings, P/E) is 96 which means that the stock price compared with what market professionals expect for future profits is lower than for 96% of comparable companies, indicating a good value concerning Sunrun's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 89, which means that the stock price is lower as regards to invested capital than for 89% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 53% of alternatives (only 47% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 41, is a hold recommendation based on Sunrun's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 39 |
|
30 |
|
33 |
|
47 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 4 |
|
1 |
|
96 |
|
96 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 96 |
|
94 |
|
89 |
|
89 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 30 |
|
53 |
|
35 |
|
41 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 63 (better than 63% compared with alternatives), Sunrun shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Sunrun. Sales Growth has a rank of 51 which means that currently, professionals expect the company to grow more than 51% of its competitors. Both Profit Growth, with a rank of 91, and Stock Returns, with a rank of 57, are also above average. But Capital Growth only has a rank of 29, which means that, currently, professionals expect the company to grow its invested capital less than 71% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 63, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 100 |
|
53 |
|
42 |
|
51 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 100 |
|
75 |
|
1 |
|
91 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
90 |
|
66 |
|
29 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 2 |
|
13 |
|
33 |
|
57 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 30 |
|
77 |
|
23 |
|
63 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 1 (better than 1% compared with alternatives), the company Sunrun has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Sunrun is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Sunrun. Liquidity is at 39, meaning that the company generates less profit to service its debt than 61% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 6, meaning the company has an above-average debt-to-equity ratio. It has more debt than 94% of its competitors. Finally, Refinancing is at a rank of 39 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 61% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 1 (worse than 99% compared with alternatives), Sunrun has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Sunrun because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 2 |
|
24 |
|
12 |
|
6 |
|
| REFINANCING | ||||||||
| REFINANCING | 19 |
|
11 |
|
25 |
|
39 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 16 |
|
23 |
|
38 |
|
39 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 1 |
|
4 |
|
4 |
|
1 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
40 |
|
57 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
54 |
|
43 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
65 |
|
29 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
28 |
|
26 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
47 |
|
25 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Sunrun from November 28, 2024.
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