NEW YORK (TheStreet) -- SolarCity (SCTY) rose to an all-time high of $83.79 on Tuesday, one day after the stock dipped in conjunction with the energy company's announcement that it would delay the release of its fourth quarter results.
The stock closed at $81.18, up 3.35%, or $2.63, from its previous close of $78.55. It amassed a volume of 12,250,228, nearly triple its average of 4,202,200. The stock hit a low of $76 for the day and holds a one-year low of $15.88.
The delay of much of the fourth-quarter financials did not dissuade Credit Suisse, which holds an "outperform" rating on SolarCity.
"[T]he company has delayed releasing Q4 financials due to ongoing work preparing Q4 results, specifically due to complications arising from recent acquisitions and overhead cost allocation," the firm wrote in a research note. "While the Q1 guide for volume is lower than we were expecting and the uncertainty caused by delayed reporting will likely weigh on the stock, we believe the value creation drivers remain intact and would view a rerating in the stock as a buying opportunity. SolarCity is in the early innings of the adoption to distributed generation and is still scratching the surface with step-function increases in returns from accessing lower cost capital."
TheStreet Ratings team rates SOLARCITY CORP as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOLARCITY CORP (SCTY) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been very high debt management risk by most measures."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The debt-to-equity ratio of 1.03 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, SCTY has a quick ratio of 0.59, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- SOLARCITY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 217.8% in earnings (-$1.78 versus -$0.56).
- 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.
- The gross profit margin for SOLARCITY CORP is rather high; currently it is at 65.47%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.90% trails the industry average.
- Net operating cash flow has improved to $100.01 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average.
- You can view the full analysis from the report here: SCTY Ratings Report