The firm said it upgraded the solar energy systems company's rating after a 35% pull back in shares created a buying opportunity.
Must Read: Warren Buffett's 10 Favorite Growth Stocks
- Net operating cash flow has significantly decreased to -$8.43 million or 113.02% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for SOLARCITY CORP is rather low; currently it is at 20.82%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 56.43% has significantly outperformed against the industry average.
- The debt-to-equity ratio of 1.08 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, SCTY has managed to keep a strong quick ratio of 1.89, which demonstrates the ability to cover short-term cash needs.
- SOLARCITY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SOLARCITY CORP reported poor results of -$0.75 versus -$0.56 in the prior year. For the next year, the market is expecting a contraction of 244.0% in earnings (-$2.58 versus -$0.75).
- Compared to other companies in the Electrical Equipment industry and the overall market, SOLARCITY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: SCTY Ratings Report