Investment Thesis
SUNation Energy faces severe financial distress with negative operating income (-$4.3M) and negative operating cash flow (-$5.2M) despite 26.5% revenue growth, indicating fundamental cost structure problems rather than growth challenges. Critical liquidity deterioration (current ratio 0.72x, quick ratio 0.49x) with only $1.7M cash against massive operating losses presents existential solvency risk at current burn rates.
Strengths
- Revenue growing 26.5% year-over-year shows market demand and sales execution
- Gross margin of 22.1% indicates projects generate positive unit economics at production level
- Moderate leverage (0.33x Debt/Equity) suggests debt obligations manageable if operations improve
Risks
- Negative operating cash flow of -$5.2M with only $1.7M cash on hand creates immediate liquidity crisis risk
- Operating margin of -60.2% and net margin of -56.9% indicate severe overhead burden relative to revenue scale
- Current ratio of 0.72x and quick ratio of 0.49x both below critical thresholds signal inability to meet short-term obligations
Key Metrics to Watch
- Monthly burn rate and cash runway remaining
- Path to operating cash flow positive inflection point
- Gross margin sustainability and operating expense ratio as percentage of revenue
Financial Metrics
Revenue
7.2M
Net Income
-4.1M
EPS (Diluted)
$-1.20
Free Cash Flow
-5.2M
Total Assets
40.1M
Cash
1.7M
Profitability Ratios
Gross Margin
22.1%
Operating Margin
-60.2%
Net Margin
-56.9%
ROE
-20.2%
ROA
-10.2%
FCF Margin
-72.5%
Balance Sheet & Liquidity
Current Ratio
0.72x
Quick Ratio
0.49x
Debt/Equity
0.33x
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
6.6M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-23T09:29:07.090917 |
Data as of: 2026-03-31 |
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