Array Technologies Inc: Solar Stock Presents an Opportunity After 60% Discount

Array Technologies Inc:太阳能股票在六折后出现机会

2021-08-17 22:00:29 PROFIT


Solar stocks surged following the election win by President Joe Biden. However, the initial momentum has faded. The Invesco Solar ETF (NYSEARCA:TAN) spiked to a record $125.98 on January 25 but has since plummeted to the $80.00 handle. Clearly, the market wants to see what Biden does to fuel demand for the solar industry. This could mean credits and rebates. Chart courtesy of Regardless, I am confident about the future of solar power, since it’s plentiful and cheap to produce after the initial costs. But instead of playing the extremely competitive solar panel sector, I suggest that investors look at the makers of other critical parts. Take the case of Array Technologies Inc (NASDAQ:ARRY). The company builds the ground-mounting systems used to adjust the angle of solar panels to maximize the power generated. Array Technologies stock debuted with its initial public offering (IPO) on October 15, 2020 at the subscribed price of $22.00. ARRY stock surged to $54.78 in January 2021 on the Biden enthusiasm. However, the stock has since declined to below its IPO price, where I like the risk/reward opportunity. Chart courtesy of While shares of Array Technologies are being dumped in the market, the company has been generating strong fundamentals. The three-year revenue picture shows impressive growth in 2019, followed by some moderation in 2020. However, the company still produced record revenues at a healthy 34.7% growth rate. (Source: “Array Technologies Inc.” MarketWatch, last accessed August 13, 2021.) While the expected growth rate is normalizing, analysts estimate that Array Technologies will deliver over $1.0 billion in revenues in 2021 or 2022. The consensus estimate is that the company will generate $991.5 million in revenues this year, but there’s a high estimate of $1.1 billion. (Source: “Array Technologies, Inc. (ARRY),” Yahoo! Finance, last accessed August 13, 2021.) Array Technologies Inc is expected to ramp up its growth to 18.2% for 2022, delivering revenues of $1.2 billion. After negative earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2018, the company delivered two strong years of higher EBITDA income, to a record high in 2020. (Source: MarketWatch, op. cit.) Array Technologies Inc also moved to generally accepted accounting principles (GAAP) earnings-per-share (EPS) profitability in 2019 and 2020. (Source: MarketWatch, op. cit.) On an adjusted basis, Array Technologies delivered $0.93 per diluted share in profits in 2020. This figure is expected to fall to $0.43 this year before recovering to $0.80. However, it’s predicted to go as high as $0.98 per diluted share in 2022. (Source: Yahoo! Finance, op. cit.) Array Technologies Inc’s free-cash-flow (FCF) picture has been mixed so far as the company works on ramping up its revenues. With Array Technologies’ expected jump in revenues, watch for its FCF to improve. (Source: MarketWatch, op. cit.) Array Technologies currently carries a debt load of $498.2 million, which will need to be addressed. I don’t see any issues, however, given the revenue growth and profitability. (Source: Yahoo! Finance, op. cit.) Array Technologies stock has broad institutional support, with 285 institutions holding the vast majority of the shares. (Source: Yahoo! Finance, op. cit.) Considering the major price deterioration, I like the upside prospects for ARRY stock, given the company’s strong fundamentals. And considering that Array Technologies Inc trades at a reasonable two times its consensus 2022 revenue estimate, it’s definitely attractive in this market.
乔·拜登总统赢得选举后,太阳能股票飙升。然而,最初的势头已经消退。 景顺太阳能ETF(NYSEARCA:TAN)在1月25日飙升至创纪录的125.98美元,但此后暴跌至80.00美元。显然,市场希望看到拜登如何推动太阳能行业的需求。这可能意味着信贷和回扣。 图表由stockcharts.com提供 不管怎样,我对太阳能的未来充满信心,因为在最初的成本之后,它的产量丰富,生产成本低廉。 但我建议投资者不要在竞争异常激烈的太阳能电池板领域投资,而应关注其他关键零部件的制造商。 以Array Technologies Inc.(纳斯达克代码:Arry)为例。该公司建立了地面安装系统,用于调整太阳能电池板的角度,以最大限度地发电。 Array Technologies股票于2020年10月15日首次公开发行(IPO),认购价为22.00美元。 在拜登的热情下,ARRY的股票在2021年1月飙升至54.78美元。然而,该股此后已跌至IPO价格以下,我喜欢那里的风险/回报机会。 图表由stockcharts.com提供 尽管Array Technologies的股票在市场上被抛售,但该公司一直在创造强劲的基本面。 三年营收显示,2019年增长可观,2020年略有放缓。然而,该公司仍以34.7%的健康增长率创造了创纪录的收入。 (来源:“Array Technologies Inc.”MarketWatch,最后一次访问是2021年8月13日。) 虽然预期增长率正在正常化,但分析师估计,阵列技术将在2021年或2022年带来超过10亿美元的收入。 普遍的估计是该公司今年将产生9.915亿美元的收入,但也有11亿美元的高估计。(来源:“阵列技术公司(Array Technologies,Inc.)”,雅虎!财经,最后一次访问是2021年8月13日。) 阵列技术公司预计将在2022年将其增长率提高到18.2%,实现收入12亿美元。 继2018年息税折旧及摊销前盈利(EBITDA)为负后,该公司实现了两年强劲的EBITDA收入,2020年创下历史新高。 (资料来源:MarketWatch,同前) Array Technologies Inc.还在2019年和2020年转向公认会计原则(GAAP)每股收益(EPS)盈利能力。 (资料来源:MarketWatch,同前) 经调整后,2020年Array Technologies每股摊薄利润为0.93美元。这一数字预计今年将降至0.43美元,然后恢复至0.80美元。然而,预计2022年每股稀释股份将高达0.98美元。(来源:Yahoo!Finance,同前) Array Technologies Inc.的自由现金流(FCF)情况一直喜忧参半,因为该公司正在努力增加收入。随着Array Technologies预期的收入增长,关注其FCF的改善。 (资料来源:MarketWatch,同前) Array Technologies目前有4.982亿美元的债务负担,这将需要解决。然而,考虑到收入增长和盈利能力,我认为没有任何问题。(来源:Yahoo!Finance,同前) Array Technologies股票拥有广泛的机构支持,285家机构持有绝大多数股票。(来源:Yahoo!Finance,同前) 考虑到价格的严重恶化,鉴于该公司强劲的基本面,我喜欢ARRY股票的上行前景。 考虑到Array Technologies Inc.的股价是其2022年共识收入估计的合理两倍,它在这个市场上肯定很有吸引力。