| Solar Roofs and EV Chargers, Revenues are Booming at Solar Integrated Roofing
H1 revenues of $93.2M and Net Profit of $24.5M. Guidance for FYE 2022 revenues of $225M and a market cap of only $99M.
Hello everyone and a warm welcome to all of our new members,
Solar Integrated Roofing Corporation (OTC: SIRC) is a solar power roofing system, EV charging, HVAC, battery storage and electrical company for both commercial and residential projects.
Current price $.17/share (at market close 11-4-22)
SIRC may have the potential for triple digit gains, read below and see if you agree with me. SIRC has a lot going for it. Triple digit revenue growth, big profits, a potential near term up list, and a booming market sector to operate in.
H1 2022 (ended June 30) results:
Revenues $93.2M
Net Income $24.5M (26% of revenues)
EPS $.05 (just for H1)
YoY revenue growth:
2020 revenues $17M
2021 revenues $84M
2022 revenues $225M (guidance)
SIRC has a current market cap of $99M. When I saw the H1 2022 results above, I had to think “why is their market cap only $99M?” The simple answer is it should be higher. I want to look at SIRC to see how they make money and the potential for more profits in H2 2022 and beyond.
SIRC checks all the boxes:
Solar roofing, battery energy storage, EV charging stations = super-hot markets
Revenues are growing at a mind-boggling rate with a P/S ratio at only .44X
Enviable earnings with a H1 2022 P/E ratio of .25
When do you ever see that combination of attributes in any company?
In an interview from October 26th, CEO David Massey shed light on the status of the company:
“H-2 2022 is looking better than H1 2022”
“Guided to FYE 2022 revenues of $225M”
“Looking at a potential NASDAQ listing in 2023”
“Looking forward, 2023 could be twice as good as 2022”
Those statements by CEO Massey imply that H2 2022 revenues could be $130M and FYE 2023 revenues could be close to $450M. Now consider that SIRC is generating a net profit that’s 26% of revenues. Those enviable numbers are staggering for a company with a market cap under $100M.
SIRC has filed a Form 10 Registration Statement with the SEC to register and become a fully reporting company. The effective date of that filing is this week. The company has begun filing annual reports with the SEC on Form 10-K, quarterly reports on Form 10-Q, periodic reports on Form 8-K, in preparation for a future NASDAQ listing.
With its growth by accretive acquisition strategy (the company has thirteen subsidiaries listed below), SIRC’s businesses now include sales and installation of solar energy systems, battery backup and electric vehicles (EV) charging stations to roofing, HVAC, and related electrical contracting work but the bulk of revenues are from solar roofing.
According to a Freedonia Group analysis, rapid growth is expected in the U.S. solar roofing market from $50 million in 2020 to nearly $1 billion in 2025. That data not only underscores the growth opportunity for SICR, but also indicates the company is a significant player in solar roofing.
Last month SIRC announced Stefan Abbruzzese had joined the management team as President. He is a seasoned professional who has built diverse world-class teams and led global organizations across all stages of the company lifecycle and through several business cycles.
Look at the background of Mr. Abbruzzese and you may agree with me that he is uniquely qualified to help SIRC develop the management team and the processes needed to make the company a nationwide player and become THE leader in their markets.
Look at these two ongoing contracts the company nailed down this year:
Awarded 5-year blanket purchase agreement with the U.S. General Services Administration as part of the $5 billion in federal funds allocated to EV charging installations in the Biden Administration’s Infrastructure Bill.
SIRC partner Associated Energy Developers, an alternative energy company, will assist with the development and financing of energy systems comprised of solar, battery storage and EV charging solutions for multiple existing Hard Rock Hotel locations along with several planned future hotels. The Hard Rock development could generate an estimated $55 million in sales for the initial portfolio and up to an estimated $140 million in sales over an estimated 24 – 36-month period.
SIRC has a massive backlog. In their Q2 form 10-Q they list Work in Process at $68M. Considering the two huge orders detailed above, one might assume that the backlog has grown even larger.
SIRC subsidiaries:
Secure Roofing & Solar Inc.
Narrate, LLC
McKay Roofing Company, Inc.
Milholland Electric, Inc
Montross Companies, Inc.
Approved Home Pros LLC
Enerev LLC
Pacific Lighting Management, Inc.
Balance Authority, LLC
Kinetic Investments, Inc. dba Future Home Power
USA Solar Network LLC
SunUp Solar LLC
Renovation Roofing, Inc.
SIRC statistics:
FYE is December 31st – MRQ June 30, 2022
Market cap $99M
Outstanding shares 586M
Shares in float 367M
Revenues (ttm) $166M
Recent high (Aug. 9th) $.61/share
For a company growing this fast and generating big profits, the current RSI (14) of 37.67 seems oversold. This chart looks ready for a swing.
Stay tuned for our full report on SIRC.
The Traders News Group |
