Be Wary Of These 3 Overvalued Clean Energy Stocks

However, the company’s revenue for the fourth quarter, ended December 31, 2020, decreased 14.4% year-over-year to $358.11 million. Its non-GAAP gross profit was  $116.42 million, which represents a 21.6% year-over-year decline. SEDG’s non-GAAP operating income was $43.49 million, down more than 49% year-over-year. Also, the company’s non-GAAP net income decreased 36.2% year-over-year to $55.73 million, while its non-GAAP EPS declined 40.6% year-over-year to $0.98.

A consensus revenue estimate of $396.43 million for the current quarter ending March 31, 2021, represents a decline of 8.1% on a year-over-year basis. In terms of its non-GAAP forward price/earnings, SEDG’s 57.09x is 125.5% higher than the industry average of 25.32x. In terms of forward price/sales, the stock is currently trading at 7.82x, which is more than 102% higher than the industry average of 3.87x.

SEDG has lost 10.8% over the past month and closed yesterday’s trading session at $295.23.

It’s no surprise that SEDG has an overall rating of D which equates to Sell in our POWR Ratings system.

The stock also has an F grade for Growth and a D grade for Value, Stability and Sentiment. Click here to see the additional POWR Ratings for SEDG (Momentum and Quality).

SEDG is ranked #13 of 19 stocks in the F-rated Solar industry.

Bloom Energy Corporation (BE - Get Rating)

Operating for nearly two decades, BE is focused on the designing, manufacturing and selling of solid-oxide fuel cell systems for on-site power generation. The company offers Bloom Energy Server, which is a power generation platform that converts standard low-pressure natural gas, biogas, or hydrogen into electricity through an electrochemical process without combustion. BE offers its services to several sectors, including the banking and financial sector and healthcare sector.

A coalition of 11 companies partnered to form Hydrogen Forward, an initiative focused on advancing hydrogen development in the United States, on February 2.  It includes BE as one of the founding members. Last December, BE and El Camino Health announced the launch of the University of Illinois’ innovative Shield T3 COVID testing system and mobile laboratory at BE’s manufacturing facility in Sunnyvale, California.

However, the company’s non-GAAP operating income for the fourth quarter ended December 31, 2020 was t $11.99 million, down nearly 22% sequentially. The company’s adjusted EBITDA came in at $25.52 million, which represents a 7.8% decline sequentially. Its adjusted loss per share was  $0.08 for the quarter compared to a loss per share of $0.04 during the third quarter of 2020.

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