SunPower Corporation Stock Has Jumped Nearly 5x Since 2018: Here’s Why

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SPWR: Sunpower logo
SPWR
Sunpower

SunPower Corporation (NASDAQ: SPWR) stock price gained 4.6x from $4.10 at 2018 end to around $18.86 currently, primarily due to favorable changes in its P/S multiple. However, the company witnessed a drop in its revenue per share, as a rise in sales was outweighed by a faster rise in its outstanding share count. Despite this, the stock’s strong gains have helped it outperform the S&P, which returned around 60% over the same period.

In our interactive dashboard, Why Sunpower Stock Moved: SPWR Stock Has Gained 360% Since 2018, we break down the factors behind this move.

(A) SPWR’s Total Revenue has risen 14% from $1.2 billion in FY 2018 to $1.4 billion currently

  • SPWR’s total revenue initially dropped from $1.2 billion in FY ’18 to $1.1 billion in FY ’19 due to dropping selling prices.
  • However, demand has picked up strongly since, and revenues rose to $1.3 billion by FY 2021, and currently stand as high as $1.4 billion.
  • As of FY ’21, around 85% of the company’s sales come from the Residential, Light Commercial segment, which brought in $1.12 billion.
  • For details about SPWR revenues and comparison to peers, see Sunpower (SPWR) Revenue Comparison
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(B) Revenue per share (RPS) decreased 8% from $8.54 in FY 2018 to $7.85 currently

  • SPWR revenue rose from $1.2 billion in 2018 to $1.4 billion currently, while the outstanding share count rose sharply from 140.8 million in 2018 to 174.2 million currently.
  • Due to this, RPS has dropped from $8.54 in FY ’18 to $7.85 currently.

(C) Price-To-Sales (P/S) multiple for SPWR rose from 0.6x in 2018 to 3.9x by 2020 end but has pulled back to 2.4x currently, still 4x higher than its 2018 level

  • SPWR’s P/S multiple rose to around 3.9x by late 2020, on the back of rising investor expectations surrounding continued solar products and module demand growth across all markets, leading to a rise in the company’s sales.
  • However, due to the increased economic uncertainty weighing on the broader markets and the slowing rate of sales growth, the P/S multiple has pulled back, currently standing at around 2.4x.
  • For additional details about the company stock returns and comparison to peers, see Sunpower (SPWR) Stock Return Comparison.

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

Returns Jun 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 SPWR Return 3% -13% 233%
 S&P 500 Return -3% -16% 80%
 Trefis Multi-Strategy Portfolio -4% -22% 206%

[1] Month-to-date and year-to-date as of 6/10/2022
[2] Cumulative total returns since the end of 2016

 

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