Why SunEdison (SUNE) Stock Is Up Today

NEW YORK (TheStreet) -- SunEdison (SUNE) was gaining 0.9% to $17.57 Tuesday after closing a $150 million credit facility.

The credit facility if the first half of a $300 million three-year project finance revolving credit facility arranged by Deutsche Bank (DB). SunEdison will use the credit line to buy a develop projects throughout the U.S. and Canada.

The credit line is available immediately, with the rest of the facility expected "in the near term with additional bank syndicate participants."

"This facility continues our successful utilization of the prior revolvers and generates significant project capital needed for our ongoing growth, thereby enhancing our corporate balance sheet," Ryan Bennett, vice president of project finance, North America, SunEdison said in a press release.

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TheStreet Ratings team rates SUNEDISON INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate SUNEDISON INC (SUNE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, SUNE's share price has jumped by 369.85%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • SUNE, with its decline in revenue, underperformed when compared the industry average of 5.2%. Since the same quarter one year prior, revenues slightly dropped by 8.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • SUNEDISON INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SUNEDISON INC reported poor results of -$2.39 versus -$0.65 in the prior year. This year, the market expects an improvement in earnings (-$0.20 versus -$2.39).
  • The gross profit margin for SUNEDISON INC is currently extremely low, coming in at 13.04%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -51.95% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$399.20 million or 2106.03% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: SUNE Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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