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Solar Integrated Roofing Corp. Guides For Record-Setting Growth To Continue (OTC: SIRC)

Solar Integrated Roofing Corp. Guides For Record-Setting Growth To Continue (OTC: SIRC)

Solar Integrated Roofing Corp. (OTC: SIRC) investors have reasons to be bullish. The primary one is SIRC expecting to post over $200 million in revenues this fiscal year, an increase likely to fuel further record-setting performance. SIRC is certainly on its way to doing that, posting 1H/2022 revenues of $93 million with operating momentum accelerating into the end of its FY. That makes this roughly $0.14 solar and clean energy company, on a revenues-multiple basis alone, a value proposition ripe for consideration. But SIRC offers more than growing revenues.

In fact, those considering investment in SIRC should appreciate that the company is more than a forward-looking proposition; they have a history. Value is supported by FYQ2 revenues scoring an increase of 746% to $66.3 million. That's a quarterly figure, not a yearly one, which is a notable distinction compared to peer solar companies that can't post those numbers yearly. Still, accelerating revenues are only a part of the value play; SIRC's net income also surged, reaching $18.9 million in the same period, or $0.04 per basic and diluted common share. That's compared to a loss of over three million and $(0.01) per basic and diluted common share in 2021.

While that's ample to support a higher valuation, the more excellent news for growth-stock investors is that SIRC has more operations firepower coming online, which, to use a cliche, makes the opportunity one that may be too good to ignore. 



Video Link: https://www.youtube.com/embed/1x7l-1-YFCI

Top And Bottom Line Growth Support Higher Valuations

That's not an overly bullish presumption. While current performance is strong, it's expected to get better. In fact, results, guidance, and ongoing performance from this integrated, single-source solar power, roofing systems installation, and EV charging company combine to position SIRC for considerable growth. Frankly, the sum of their parts supports SIRC's intention to have its best year in 2023. Again, not an overzealous assumption.

It's supported by several deals made this year, including announcing a 5-year blanket purchase agreement with the U.S. General Services Administration as part of the $5 billion in federal funds allocated to EV charging installations in the Biden Administration's Infrastructure Bill. That's not all. SIRC also inked a deal with AED to assist with developing and financing turnkey alternative energy systems for multiple existing hotel locations, targeting revenue-generating opportunities associated with solar, battery storage, and EV charging solutions. SIRC noted that the deal could lead to additional ones being made with other hotel chains. While those opportunities are expected to contribute to near-term growth, there's more to appreciate.

SIRC also introduced an innovative low-income solar financing product to non-profit commercial entities through a partnership with Renewable Energy Products Manufacturing. That deal can unlock new commercial scale opportunities in a market where SIRC's product advantages can exploit a thin competitive landscape. Of course, investors want guidance supporting bullish assumptions, and SIRC checks that box bullishly. 

Guidance Supports Bullish Proposition

Q2 commentary included that the quarter's performance was marked by a strong cadence of continued execution toward record revenue and profitability. Supporting that assessment are new working partnerships and the introduction of innovative financing products that position SIRC to extend its streak of impressive top and bottom-line growth. Not by small measures, either.

Guidance suggests that as its capital position strengthens, revenues could continue to hit record levels in the current fiscal year. And, with a foundation in place to facilitate revenues falling faster to its bottom line, growth could come with minimized dilution. That's not all. The clean-energy sector rally, led by companies like SolarEdge (NASDAQ: SEDG), Enphase (NASDAQ: ENPH), and First Solar (NASDAQ: FSLR), all appreciably higher since October, could enhance SIRC's opportunities, noting that sector optimism often trickles down to smallcaps, bringing exposure to the companies that are well-positioned for near and long-term growth. SIRC also checks that box. 

And keep in mind that with an expected near-term NASDAQ uplist, facilitated by SIRC filing audited financial statements for 2021 and transitioning to a more traditional December 31st fiscal year, more fuel is added to an already bullish proposition as an uplist generally brings new investor interest and opens doors to more conventional financing. Incidentally, with the most significant step to making that leap, audited financials, completed, said uplist, could come sooner than later. If so, it could be a milestone that turns into a catalyst.

Partnerships Fuel Growth Initiatives 

Remember, an uplist can strengthen its revenue-generating momentum even further by opening new market opportunities, including through partnerships that could accelerate SIRC's growth pace. Actually, that's happening now. SIRC's partnership with REPM allows them to introduce new financing products to help non-profit customers install and realize the benefits of solar with no upfront costs, no credit threshold, and no income verification needed to qualify. That's just one expected revenue stream.

SIRC expects to initiate others through comparable financing products for the residential space, leveraging its inherent ability to capitalize on markets that have been historically challenging to enter. In that respect, SIRC is positioning itself to take advantage of underserved markets by making its products available at the consumer level and meeting potentially significant untapped demand.

SIRC could expedite capitalizing on that opportunity, leveraging the expertise of its new President, Stefan Abbruzzese, who is recognized as an operations and commercialization expert in the sector. His addition could do more than monetize opportunities, his ability to secure shareholder-friendly funding if needed, can make SIRC grow bigger, faster. 

A Revenue-Generating Tailwind Getting Stronger

David Massey, SIRC CEO, expects that to happen, saying, "We're looking to wrap up our funding process … and get cashflow positive. We're very close to that now, and we're looking to really blow the doors off the revenue this year," He added, "Looking forward, 2023 could be twice as good as 2022."

Thus, with companies having a precedent of meeting guidance, the best move for investors may be to follow the leaders. After all, while they can't speak to every specific, they can drop clues. And SIRC has provided bullish ones. In fact, expecting its next year's performance to double the current isn't a read-between-the-lines statement; it's an overt one. And, following past guidance, it's not made with the expectation of overpromising and underdelivering.

So, while FY2022 should end with more record-setting numbers, considering SIRC's expectations for next year, current SIRC share prices certainly don't reflect the better times expected. But that's not entirely bad news; it does keep this undervalued investment's window of opportunity in play, making attention to it more than warranted; it's timely.

 

Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to fifteen-thousand-dollars cash via wire transfer to produce and syndicate content for Solar Integrated Roofing Corp. for a period of one month. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found in this statement and on our website. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. 

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