NASDAQ: SPI
Company Overview
Research Profile Company Website
SPI Energy is a global renewable energy company and provider of solar storage and electric vehicle (EV) solutions that was founded in 2006 in Roseville, California and is headquartered in McClellan Park, California. The Company has three core divisions: SolarJuice, which has solar wholesale distribution as well as residential solar and roofing installation and solar module manufacturing (Solar4America & SEM Wafertech); SPI Solar and Orange Power, which operate a commercial & utility solar division; and EdisonFuture, an EV and green hydrogen technology division. SolarJuice is the leader in renewable energy system solutions for residential and small commercial markets and has extensive operations in the Asia Pacific and North America markets. The SPI Solar commercial & utility solar division provides a full spectrum of EPC services to third party project developers, and develops, owns and operates solar projects that sell electricity to the grid in multiple regions, including the U.S., U.K., and Europe. SPI maintains global operations in North America, Australia, Asia and Europe and is also targeting strategic investment opportunities in fast growing green energy industries such as battery storage, charging stations, and other EVs which leverage the Company's expertise and substantial solar cash flow.
Innovating a Renewable Greener World
Value Proposition
Delivering competitive, clean energy solutions to customers for more than 15 years, SPI is an established renewable energy player with global operations in key markets in Asia, Australia, North America, and Europe. SPI has assets of $230 million and currently trades for a fraction of its trailing 12-month revenue of $206 million, a significant discount to peer group multiples. SPI reported positive net income from continuing operations in Q3 2023 and has provided full year net income guidance of $29 million to $36 million on revenues of $250 million to $300 million. To unlock additional shareholder value, SPI completed an IPO spinoff of Phoenix Motor (Nasdaq: PEV) in 2022 (currently owns 25%) and expects to complete IPOs of Solarjuice (Nasdaq: SJA – tentative) and Orange Power in 2024. SPI is currently covered by Maxim Group with a buy rating and $6 per share price target.
Attractive Regulatory Tailwinds Driving Accelerated Demand Growth
Market Data
Investment Highlights
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Strong revenue growth with clear path to profitability in 2023
- Generated $177.5 million revenue for 2022, exceeding guidance and up 9.6% year-over-year; trailing 12-month revenue of $206.9 million as of September 30, 2023
- Reported positive net income from continuing operations in Q3 2023
- Projecting $250-$300 million revenue with expectations of $29 million to $36 million net income for 2023
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Favorable regulatory environment boosting demand globally
- Provisions in U.S. Inflation Reduction Act create attractive incentives for producing solar wafers and solarmodules in the US ($12 per square meter of wafers produced)
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Diversified renewable energy portfolio targeting key verticals
- Foundation for rapid growth in solar, battery storage, electric vehicle, and hydrogen sectors
- Generating consistent cashflows from strong & growing pipeline of solar projects in US
- Launched first large-scale solar wafer manufacturing facility in US; opening second facility in SC in 2023
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Unlocking value through pure-play spin-offs
- Phoenix Motor (Nasdaq: PEV); SPI owns 25% of PEV after divesting majority stake in September 2023
- Solarjuice (Nasdaq: SJA – tentative); SPI expects to own 90% of SJA post-spin off
- Orange Power (spin-off process underway)
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Diversified international management team with deep industry experience
- Chairman & CEO has led several NYSE and Nasdaq companies and is a pioneer in the renewable energy sectorwith more than two decades experience in solar, battery storage, and EVs
- COO has more than 30 years of experience in solar and electronics industries
- VP of Solar Development has led $900M+ of renewable energy projects across US since 2010
