Company Overview
Sunrun Inc. is a leading provider in the residential solar energy sector within the United States, specializing in the design, development, installation, sale, ownership, and maintenance of solar energy systems for homeowners. The company operates within the Technology sector, specifically under the Solar industry classification, which positions it as a key player in the renewable energy transition and green technology infrastructure. As of the latest available data, the company commands a market capitalization of $3.07B and generates annual revenue of $2.96B while employing 9,059 individuals across its operations. These valuation and revenue figures indicate that Sunrun holds a significant operational scale in the domestic solar market, reflecting its substantial footprint in generating and selling solar energy systems and associated products like panels and racking. The company's business model extends beyond mere installation to include the generation of solar leads and the offering of battery storage solutions alongside its core energy systems.
Financial Health
Sunrun Inc. reported a trailing twelve-month revenue of $2.96B, accompanied by a net income of $447.64M and an EBITDA of $599.45M, illustrating a distinct gap between gross revenue and final net income that reveals a substantial cost structure involving operating expenses, taxes, and other deductions. The company's free cash flow stands at -$2,649,873,408, which indicates a significant cash outflow relative to earnings and suggests that the company is currently prioritizing capital expenditure or growth initiatives over immediate cash preservation, thereby limiting its short-term financial flexibility. Profitability analysis shows a gross margin of 30.3%, an operating margin of 8.4%, and a profit margin of 15.2%, where the widening gap between operating and profit margins highlights the impact of non-operating expenses or taxes on the bottom line. The balance sheet presents a highly leveraged profile with total debt of $14.85B compared to cash holdings of $833.18M, resulting in a debt-to-equity ratio of 297.88, which signifies a capital structure heavily reliant on borrowed funds rather than equity financing. Liquidity is supported by a current ratio of 1.66, suggesting that the company possesses sufficient current assets to cover its short-term liabilities, though this buffer is narrowed by the massive absolute debt load. Return on equity is reported at -22.1% and return on assets at -0.4%, metrics that reveal management has not yet generated positive returns on shareholder capital or total assets, likely due to the aggressive expansion strategy and high leverage inherent in the current business phase.
Valuation Assessment
The valuation metrics present a complex picture with a trailing P/E ratio of 7.65 contrasted sharply against a forward P/E of 31.79, implying that the market expects a dramatic reversal in earnings trajectory to justify the higher forward multiple, though the current earnings are low enough to sustain the low trailing multiple. The price-to-book ratio stands at 0.98, indicating that the market is currently valuing the company at slightly less than its book value, which may reflect skepticism regarding future profitability given the negative return on equity. Alternative valuation metrics include a price-to-sales ratio of 1.04 and an EV/EBITDA of 31.58, suggesting that while revenue multiples are reasonable for a growth-stage firm, the enterprise value relative to earnings before interest, taxes, depreciation, and amortization is elevated due to the high debt levels and low net income. The stock has exhibited significant volatility, trading between a 52-week low of $5.38 and a high of $22.44, meaning the current price sits at a level that reflects recent market corrections from the yearly peak. The beta value is 2.46, which indicates that the stock's price volatility is more than double that of the broader market, exposing investors to heightened risk during periods of market turbulence.
Growth & Income
Sunrun Inc. experienced a revenue growth rate of 123.5% year-over-year, while earnings growth is listed as N/A, suggesting that the rapid expansion in top-line sales has not yet translated into proportional growth in net income, likely due to the high fixed costs and leverage structure described in the financial health section. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which confirms that the firm reinvests all available earnings into operational growth, debt management, or capital projects rather than distributing cash to shareholders. This lack of dividend income combined with the negative free cash flow profile indicates a classic growth-stage company strategy where cash generation is sacrificed for market share acquisition and infrastructure scaling. Overall, the growth and income profile is characterized by explosive revenue expansion funded by significant leverage, with no current income distribution mechanism, placing the total return potential entirely on capital appreciation and future earnings normalization.