Sunrun (RUN) AI Stock Analysis

• Market Cap: $4.55B
• Dividend Yield: N/A
• Average Volume (3M): 9.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: 3.27%
• EPS Growth: -81.63%
• Country: US
• Employees: 11,058
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): 1.07
• Shares Outstanding: 230,732,570
• 10 Day Avg. Volume: 8,388,310
• 30 Day Avg. Volume: 9,760,989
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.01
• P/FCF Ratio: -0.59
• Enterprise Value/Market Cap: 3.69
• Enterprise Value/Revenue: 7.88
• Enterprise Value/Gross Profit: 42.56
• Enterprise Value/Ebitda: -5.68
• 1Y Price Target: $20.75
• Price Target Upside: 5.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 55 Neutral
• Price Target: $21.00 ▲(6.49% Upside)

Sunrun's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and ongoing losses. However, the positive technical indicators and strong earnings call performance provide some optimism. The valuation remains a concern due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

Sunrun's significant revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Energy Storage Expansion

High storage attachment rates enhance product offerings, increasing customer value and positioning Sunrun as a leader in integrated solar solutions.

Debt Reduction

Reducing debt while maintaining cash reserves strengthens Sunrun's financial position, enhancing its ability to invest in growth opportunities.

Negative Factors

High Leverage

High leverage increases financial risk, limiting flexibility and potentially impacting Sunrun's ability to withstand economic downturns.

Negative Profitability

Persistent losses and negative profitability challenge Sunrun's ability to generate sustainable earnings, impacting long-term viability.

Cash Flow Challenges

Weak cash flow generation limits Sunrun's capacity to fund operations and growth initiatives, posing risks to financial health.

Sunrun Business Overview & Revenue Model

Company Description

Sunrun Inc. is a leading residential solar energy company based in the United States, primarily focused on providing clean, affordable solar power solutions to homeowners. Founded in 2007, Sunrun designs, installs, and maintains solar energy systems, offering services that include solar panel installation, energy storage solutions, and energy management. The company operates in the renewable energy sector, leveraging technology to reduce energy costs for customers while promoting sustainable energy practices.

How the Company Makes Money

Sunrun generates revenue through several key streams. The primary revenue source comes from the sale and installation of solar energy systems, where customers can choose to purchase the systems outright or finance them through loans or leases. Additionally, Sunrun offers Power Purchase Agreements (PPAs), allowing customers to pay for the electricity generated by the solar panels at a predetermined rate, typically lower than their local utility rates. The company also earns revenue from the sale of energy storage systems and related services. Significant partnerships with various financial institutions and energy companies enhance its ability to provide financing options and expand its customer base, contributing to its overall earnings. Moreover, incentives such as federal tax credits for renewable energy investments further support the company's profitability.

Sunrun Financial Statement Overview

Summary

Sunrun faces significant financial challenges. The income statement shows persistent losses and negative margins, the balance sheet is heavily leveraged with a high debt-to-equity ratio, and cash flow generation is weak. Despite some revenue growth, high debt levels and poor profitability pose risks to long-term sustainability.

Income Statement

Sunrun's income statement reveals significant challenges with profitability. The company has a negative net profit margin of -120.56% for TTM, indicating substantial losses relative to revenue. Despite a slight revenue growth of 2.18% in the TTM period, the EBIT and EBITDA margins remain deeply negative, reflecting operational inefficiencies. The gross profit margin has improved to 18.52% in the TTM, but overall, the financial performance is weak, with persistent losses and negative growth in previous years.

Balance Sheet

Sunrun's balance sheet shows high leverage with a debt-to-equity ratio of 4.83 in the TTM, indicating significant reliance on debt financing. The return on equity is negative at -76.77%, reflecting poor returns for shareholders. The equity ratio stands at 13.79%, suggesting a low proportion of equity in the asset base. While the company has a substantial asset base, the high debt levels pose a risk to financial stability.

Cash Flow

The cash flow statement highlights severe cash flow challenges. Operating cash flow is negative, and free cash flow has declined by 35.12% in the TTM. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover its losses. The free cash flow to net income ratio is positive, but this is due to the large negative net income rather than strong cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.13B	2.04B	2.26B	2.32B	1.61B	922.19M
Gross Profit	394.24M	328.55M	163.06M	298.71M	244.48M	178.66M
EBITDA	-2.96B	-2.91B	-1.46B	60.22M	-268.68M	-213.98M
Net Income	-2.57B	-2.85B	-1.60B	-849.64M	-980.53M	-626.95M
Balance Sheet
Total Assets	21.23B	19.90B	20.45B	19.27B	16.48B	14.38B
Cash, Cash Equivalents and Short-Term Investments	1.01B	574.96M	678.82M	740.51M	617.63M	519.97M
Total Debt	14.14B	13.02B	11.09B	8.76B	6.85B	5.16B
Total Liabilities	16.78B	15.73B	13.54B	11.09B	8.91B	7.09B
Stockholders Equity	2.93B	2.55B	5.23B	6.71B	6.25B	6.08B
Cash Flow
Free Cash Flow	-2.30B	-3.47B	-3.43B	-2.86B	-2.50B	-1.29B
Operating Cash Flow	-811.38M	-766.15M	-820.74M	-848.79M	-817.19M	-317.97M
Investing Cash Flow	-2.90B	-2.70B	-2.61B	-2.09B	-1.69B	-497.79M
Financing Cash Flow	3.69B	3.43B	3.47B	3.04B	2.65B	1.16B

Sunrun Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUN, the sentiment is Positive. The current price of 19.72 is above the 20-day moving average (MA) of 19.35, above the 50-day MA of 17.21, and above the 200-day MA of 10.67, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 48.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RUN.

Sunrun Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHLS	69 Neutral	$1.75B	78.70	3.77%	―	-11.95%	-7.87%
ENPH	68 Neutral	$4.72B	28.08	19.79%	―	4.39%	37.70%
ARRY	64 Neutral	$1.38B	―	-44.13%	―	6.36%	-1683.09%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RUN	55 Neutral	$4.55B	-1.71	-61.90%	―	3.27%	-81.63%
CSIQ	54 Neutral	$937.61M	-136.98	-0.25%	―	-9.11%	-118.62%
SEDG	50 Neutral	$2.23B	-1.26	-131.02%	―	-36.07%	-233.14%

Sunrun Corporate Events

Sunrun Inc. Shines in Earnings Call with Record Growth

Sunrun Inc. recently held its earnings call, revealing a generally positive sentiment among its executives. The company showcased significant achievements in subscriber value growth, contracted net value creation, and expansion of its storage and home-to-grid programs. While Sunrun demonstrated robust financial performance and strategic positioning, some challenges were noted in cash generation and tax equity market dynamics. Nonetheless, the positive aspects of growth and strategic advancements were emphasized as outweighing these challenges.

Sunrun Inc. Reports Strong Q2 2025 Financial Growth

Sunrun Inc., a leading provider of residential solar and battery storage solutions in the United States, operates in the renewable energy sector with a focus on home-to-grid power plants. The company recently released its second-quarter 2025 financial results, highlighting significant growth in key financial metrics. Sunrun reported an Aggregate Subscriber Value of $1.6 billion, marking a 40% increase year-over-year, and a Contracted Net Value Creation of $376 million, which represents a 316% growth from the previous year. The company also achieved its fifth consecutive quarter of positive Cash Generation, amounting to $27 million. Key performance indicators for the quarter include a 70% storage attachment rate, a 15% increase in Subscriber Additions, and a 48% rise in Storage Capacity Installed. Sunrun also made strategic moves in the capital markets, completing its third securitization transaction of the year, and continued to pay down recourse debt. Looking ahead, Sunrun maintains a positive outlook for 2025, with expectations of continued growth in Aggregate Subscriber Value and Contracted Net Value Creation, supported by its focus on cost efficiencies and value optimization.