Stock on Focus: Vivint Solar, Inc. (VSLR)

Company Profile:

Vivint Solar, Inc. provides distributed solar energy to residential, commercial, and industrial customers in the United States. It operates through two segments, Residential and C&I. The company installs and owns solar energy systems through long-term customer contracts, such as power purchase agreements and solar energy system leases. It also offers photovoltaic installation devices and software products. As of December 31, 2015, the company had an aggregate capacity of 458.9 megawatts covering 68,500 homes in 12 states. It has operations in Arizona, California, Connecticut, Hawaii, Maryland, Massachusetts, New Jersey, New Mexico, New York, Pennsylvania, South Carolina, and Utah. The company was formerly known as V Solar Holdings, Inc. and changed its name to Vivint Solar, Inc. in April 2014. Vivint Solar, Inc. was founded in 2011 and is headquartered in Lehi, Utah.

Recent News:

On Sept. 21, 2016, Vivint Solar announced its expansion into Texas, with services beginning in the Austin area. The Texas market presents a compelling opportunity for Vivint Solar.

On Aug.25, 2016, Vivint Solar announced its expansion into Florida, with availability beginning in the Tampa Bay area. According to the U.S. Energy Information Administration, Florida has among the highest electricity consumption in the nation, with annual household electricity consumption approximately 30 percent higher than the U.S. average.

For the second quarter ended June 30, 2016, Vivint Solar reported l oss from Operations was $36.5 million compared to $72.3 million in the same period of 2015. GAAP Net Income Available (Loss Attributable) to Stockholders per Diluted Share was $0.11, down from $0.12 in the second quarter of 2015. Cash and Cash Equivalents were $69.6 million.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

VSLR’s strengths can be seen in its strong growth and better solvency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI is increasing to 44.68. We rate Vivint Solar, Inc. (VSLR) a STRONG BUY.