In the spotlight- Sunworks, Inc. (NASDAQ: SUNW)

 

Shares of Sunworks are up 1.73% at 1:15 EST at $2.35 per share. Trading volume is unremarkable at 101,000 shares. The company currently reports 20.5 million shares outstanding with a float of 18.5 million shares.

Sunworks, Inc. provides photo voltaic based solar power systems for the residential, commercial, and agricultural markets in the United States. It also designs, finances, integrates, and manages systems ranging in size from 2 kilowatt for residential loads to multi megawatt systems for larger commercial projects. Further, it develops and markets three-dimensional version of solar cell technology to enhance the conversion of sunlight into electricity.

In 2013 SUNW was operating in California and generating $8.5 million in revenue. Since then the company has acquired MD Energy LLC and Elite Solar, two companies that generated a combined revenue if $21 million. The addition of these two companies to Sunworks existing operation have allowed the company to expand into Nevada, and recently into Oregon. These strategic moves have transformed the company into an enterprise expected to generate $100 million in revenue for 2016.

As shown in the chart below, the growth in the solar energy sector is expected to continue at a solid rate. The growth at SUNW exceeds the growth in the market. The organic growth the company is experiencing comes mainly through referrals with almost all commercial business and 40% of the residential business coming from referrals. In Q1 2016 SUNW reported an order backlog of almost $40 million.

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In the past two years SUNW has recorded some huge leaps on their financial statements:

Revenue has grown from $10 million to $100 million (projected for 2016)

Assets have grown from $6 million to $40 million

Working capital has grown from ($743) thousand to over $11 million

Shareholder’s equity has grown from $2 million to $24 million

While there is much competition in the solar power market space, Sunworks stands out by virtue of its rapid growth, customer satisfaction rates and profits. The current analyst target price for Sunworks is $5.50 per share.