London, UK, ZEX PR WIRE – The broke from Tradethebit says income Stocks are mainly issued by financial institutions or non-financial firms to reduce current cash flow requirements or for future expansion. Income stocks are also issued to meet short-term financial requirements of the company, namely for meeting interest payments and other costs.
The main reasons for investing in income stocks are to earn a regular stream of income from dividends and capital gains. Income stocks have lower risk than growth stocks because they tend to pay steady dividends, which provide a steady income. However, in case of any adverse change in the business environment or downturn in the market conditions, these stocks do not provide capital gains to their investors.
Trina Solar Limited (NYSE:TSL) [July 2021]
TSL’s revenue from the sale of solar products is around $1.9B in 2021 and tends to increase by 8% every year. With the increasing demand for the company’s solar panels as well as the rising price for its PV cells, TNJ has a great opportunity to expand its market share in worldwide markets.
PV Cell Revenue by Region
In the first half of 2018, TNJ has already gained 9% in revenue. In 2017, its solar panel shipments increased by over 15%. With the rising cost for silicon and electricity all over the world, TNJ is expected to gain a stronger foothold in the PV market.
A report from NPD Solarbuzz in 2018 states that the PV cell shipments increased by 17% in 2017 and are forecasted to grow by 18% up to 2021. The global solar market is predicted to rise from $121 billion to $159 billion in 2021 which will lead TNJ’s revenue growth.
In 2018, the gross margin was around 20% compared to 22.4% in 2017. TNJ sold around 1,361MW of solar panels in the first quarter but could only achieve a 22% gross margin. The revenue generated from solar cells is higher than that of PV panels which is why the revenue should increase although the sales volume does not rise much.
TNJ recorded almost $5 billion in sales in 2018 but achieved a gross margin of only 20%. Although the company has made an effort to grow its PV business, it is still not able to set high standards for itself.
The company has been working on a plan to diversify into new businesses and markets such as energy storage and smart cities. Although TNJ recorded losses in these new fields, they were able to expand the business scale by 19%.
The gross margin of TNJ in 2018 is one of its weakest years since 2009. The revenue from solar cells has been gradually growing over time but the company’s greatest concern should be about its actual gross margin for PV products.
SunPower Corporation (SPWR):
SunPower Corporation (SPWR) develops, manufactures and distributes solar cells and solar panels for the residential, commercial and utility-scale power markets. The company has been incorporated in 1984. Currently it trades at $8.18 per share with market cap of $2.20 Billion. Its average volume comes around 1.03 Million shares and the stock has an average true range of 3.34. The company is trading at a price to book ratio of 1.6, Price to sales (ttm) ratio of 2.52 and Price to cash per share for last month comes around 3.62.
SunPower Corporation’s total assets stands at $3 Billion whereas Current liabilities for the company is reported around $1.21 Billion in comparison to its Current assets which stand at $639 Million. The total debt of the company has been reported as $254.2 million and stockholder equity (ttm) comes at 1.59 Billion.
It’s a truly global business with most sales overseas, although home to offices in Austin, San Jose and Goleta California, the vast majority of its employees work at manufacturing locations in Asia.
Its installed capacity is approaching 7 gig watts but it doesn’t generate any electricity. It merely creates the components that make solar power possible for other companies. The profit margins on selling solar panels are razor thin at best, but the margins are even slimmer on its own equipment. It doesn’t make money by selling solar power plants, but it does make money from building them.
Now the company is on firmer footing and it’s looking to growth rather than survival. Its share price is still well below where it was in 2012 or 2013 but the company believes that demand for its products will continue increasing and so profits should follow.
It’s a story we’ve heard from many different solar companies, including First Solar (FSLR). In each case the stock had fallen too far and investors are finally willing to give them a second chance.
Sun Power earned an adjusted $0.49 per share in its last fiscal year (ending March 31) on sales of $2.7 billion. The company expects revenue to grow by 10% this year, which is pretty good considering that the first quarter already came in at $418 million.
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