SunPower Corp. (NASDAQ: SPWR) is a solar energy company that sells power solutions to the residential, commercial, and power plant segments of the market. Formed in 1985, the company is now one of the most important alternative energy companies in the United States.
Major changes are being implemented for SunPower. It is spinning off the majority of its manufacturing business and will focus instead on technology development and sales. Maxeon Solar Technologies, the company that will be formed from SunPower’s manufacturing division, will become the exclusive supplier for high-efficiency panels.
SunPower is not yet profitable, but by separating its manufacturing business it will reduce overheads. Because the company will no longer handle installations in-house, it will be able to leverage the success of other companies in the industry by offering its technical support, financing, and proprietary solar panel technologies. In the long term, this should result in lower installation costs for consumers as they will be able to work directly with local installers. This strategy could see SunPower become a major solar technology supplier within the next ten years.
SunPower’s revenue has declined by almost 50% over the last five years. However, its restructuring could turn this trend around. The company operates with a slim gross margin of 3.36%, so profitability is within reach. There’s a lot of speculation in this pick, but at a bargain price, it is an opportunity for alternative investors who want an affordable holding with long term potential.
- 1 Year Price Growth: 73%
- YTD Price Growth: -1.60%
- 3 Month Price Growth: -21.60%
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