SunPower Corp (SWPRA) *contact for tearsheet*
SunPower Corporation is an integrated solar products and services company that designs, manufactures and markets high-performance solar electric power technologies.
Differentiated products such as a relatively high conversion efficiency and better aesthetics should help SunPower gain new customers and contracts faster than peers. The highest efficiency solar cells in the industry means that SunPower’s cells need less space to generate the same amount of electricity. This makes their products an ideal choice for home and business installations, where space constraints and aesthetics are important considerations.
The solar industry has enjoyed rapid growth of over 40 percent during the last five years. Going forward, demand for solar electric power systems will be driven by increasing energy consumption in emerging countries, rising oil prices, environmental concerns and growing interest in solar power as a viable energy source.
The biggest risk is the level uncertainty that naturally comes with fast-growing, immature industries. With so much money pouring into research for alternative energy, a superior technology could emerge that SunPower will be unable to compete with. Another risk is that the company would not be economically viability without government subsidies that are by no means indefinite.
SunPower plans to continue its rapid growth by improving the efficiency and reducing the cost of its solar systems so that the cost of solar electricity can compete with retail electric rates and become a major energy source. The company also hopes to expand production to increase sales. This would allow profitability significantly expand since fixed costs would be a lower percentage of sales.
Quick Hits
Friday, March 20, 2009
SPWRA
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