Solar stocks have seen their fair share of ups and downs in recent years, to say the least, but analysts at JP Morgan are seeing blue skies ahead. In a research report this month, JPM took a positive view on their top solar companies, boosting price targets ahead of earnings reports as project orders and residential sales seem to be clicking. Companies relying heavily on modules made in China also got a lift this month as well with the World Trade Organization ruling against the U.S. imposing tariffs on Chinese exports, saying the tariffs aren’t consistent with the 1994 Marrakesh accord.
These can be presumed to brighten the future of OneRoof Energy Group, Inc. (TSX-Venture:ON) and its wholly-owned subsidiary OneRoof Energy, a San Diego-based solar service provider.
OneRoof offers an end-to-end solar solution to homeowners, including traditional and lease financing, solar system design, installation, monitoring and maintenance services. The company partners with energy retailers and home services companies to offer a wide array of renewable energy choices with little to no upfront expenditure.
The company is in the expansion stage, broadening its U.S. footprint in key markets recently. In May, OneRoof entered the New York rooftop market, only a month after it began offering its products and services in Massachusetts. With that, the company is now in Arizona, California, Hawaii, Massachusetts and New York, representing five of the top ten solar states in the country. Demand in New York is growing rapidly, rising from 6.1 megawatts in residential solar installations in the third quarter of 2013 to 13.1 megawatts in the fourth quarter. According to the Solar Energy Industries Association, installs in New York are forecast to increase to 75 megawatts by the end of this year.
With the expansion comes financial pains, but the company is starting to generate more cash flow and trimming losses. Revenue from systems sold went from nil in the first quarter of 2013 to $517,339 in Q1 this year. Lease revenue rose from $72,417 to $269,907 at the same time. Including other items, total revenue for the first quarter improved to $1.42 million from $114,074 in the year prior period. Net loss for the quarter was $7.3 million, or 66 cents per share, versus $9.03 million, or $2.17 per share, a year earlier.
On Tuesday, OneRoof said that it has forged an allegiance with Elevate, a cloud-based, digital subscription service provider, delivering data, voice, video, mobile and security to residences and businesses. With the new partnership, Elevate is expanding its offerings to include solar solutions, effectively making solar a digital service and opening the door to a new sales channel for OneRoof through Elevates expansive customer base.
"This new relationship gives us the opportunity to fulfill the rapidly growing demand for rooftop solar in California, while also making our software, SunOpps, the industry standard for making solar a digital service," said David Field, president and chief executive officer or OneRoof Energy, in a statement today.
SunOpps is a cloud-enabled tool that empowers homeowners to customize and monitor all aspects of their solar electric system, including financing, savings and environmental benefit, amongst other things.
There are only 10.6 million shares of ON issued and outstanding. Spindrift Equities holds 4.2% of those shares, with the potential to boost that stake to 20.1% (calculated on a partially diluted basis) should Spindrift convert restricted shares and exercise warrants it holds. The low float keeps the stock thinly traded. No shares have changed hands in Tuesday action, with the stock price holding at $1.45 just after the opening bell.
