Sunnova Energy (NYSE:NOVA) said its shares gave up early gains and commenced trading Monday in the red. Morgan Stanley initiated Sunnova with an overweight rating, noting the stock could more than double in value. Sunnova shares have dropped 13.3% in 2023.
Sunnova reported year-over-year revenue growth of 200% for its last reported fiscal 2022 fourth quarter. Strong growth continues on the back of new customer adds and an increasing take up of its battery storage solution.
Cash and equivalents of $360 million as of the end of the fourth quarter have helped form a material runway as profitability improves.
Sunnova's fiscal 2022 fourth-quarter earnings report was strong with revenue surging by 200% against the ramping momentum of US home solar installs. However, profitability remains problematic and the common shares are down 18% year-to-date to trade on a $1.7 billion market capitalization. With total fiscal 2022 revenue at $557.7 million, the company currently trades at a price to fiscal 2022 sales multiple of 3x, its lowest-ever level since going public in 2019 and down from its historical high of more than 30x.
NOVA is still a young company, founded by startup and power industry expert and CEO John Berger in Houston in 2012 and has been publicly trading since 2019. The company generates revenue by selling solar energy products and services focusing on the USA market. NOVA designs, installs, monitors, and maintains solar panels for residential homes on a long-term contractual basis.
NOVA shares dipped 31 cents, or 2%, to $15.30.
