Stock Scrutiny: JinkoSolar Holding Co Ltd
JinkoSolar Holding Company Limited is a solar power company headquartered in Shangrao, China. It is a manufacturer of silicon wafers, solar cells, and solar modules which are used for manufacturing solar panels, the most common source of solar power.
Based on fundamentals and growth, this is probably one of the best stocks out there. It's EPS percent change from last quarter was an astounding 3833% and it has had 3 quarters of EPS acceleration. Its estimate revisions are up and it beat its last quarter earnings estimate by 103.4%. Overall, JinkoSolar's 3 year EPS growth rate is 70%, and its EPS estimate percent change in this current year is 578.18%! Jinko's 3 Year Sales Growth Rate is 76%, its percent of sales change from last quarter is 310%, and it has an annual Return on Equity of an impressive 20%. This stock is currently 10.1% off of its 52- week high, which could very well become an excellent buying opportunity for new investors. Also, for all of you investors who factor in P/E, JinkoSolar only has a forward P/E of 8x, which is well below the industry average of 12x (since solar is usually a heavily overpriced market).
The biggest weaknesses I could find in this company can be found in this handy source: http://seekingalpha.com/article/226775-jinkosolar-s-capacity-expansion-is-out-ahead-of-its-revenues
According to this article, full financial statements for JinkoSolar were not provided to the SEC for the second quarter filing, and that the company provided inadequate documents for its quarterly filing. This article also talks about internal control problems at JinkoSolar (which it has not elaborated on) and argued that the company's supply has exceeded demand.