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The Company designs, develops, manufactures, markets and sells solar electric power products, systems and services based on its proprietary processes and technologies.
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JSB8000 (97.47) Submitted: 3/28/07 11:00 PM : Start Price: $47.45 SPWR Score: 112.99
Sunpower (SPWR) is solar energy company that actually makes a profit ... and a profit that analysts expect to grow by ~100% in 07 and 75% in 08. Long term, world energy prices are headed only up, while SPWR's cost per kilowatt of electricity keeps declining. Even if global warming weren't a problem, Sunpower would be a great growth story; and adding in the increasing urgency of our need to address global climate change just ices the cake. As of today (3/28/07), SPWR sells at an 07 PE of 48 and an 08 PE of 28. These sound high, but given the company's estimated annual 5-year growth rate of 44%, its 07 PEG (PE to growth ratio) is only 1.1; and that's extremely reasonable for this kind of explosive growth. Overall, Sunpower represents a great value. This stock will experience dips, that's inevitable, but the payoff will be richly rewarding in a year or two.
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SidBord (65.58) Submitted: 7/25/07 5:14 PM
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SPWR is one of the greats in the solar power industry. It's not going to go broke any time soon ... quite the contrary. But it is absurdly overpriced. I just checked my research source at Fidelity Investments, and yes it's true. SPWR's PE for the most recent quarter was 285.9. and for the most recent twelve months, it is 295. Note that the industry average is 33.3! This kind of valuation practically guarantees heartbreak sometime in the not too distant future. This is a fact that you just shouldn't ignore if you are thinking of buying SPWR. Don't misunderstand what I'm saying ... I believe SPWR is a fine company. I just feel the market has overpriced it's shares.
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JSB8000 (97.47) Submitted: 10/11/07 2:09 PM
Sunpower shares have increased by 90% since March of 2007, so it's not as great a bargain today. Still... As of today (10/11/07), Morningstar calculates a forward PE of 44 for Sunpower, compared to an industry average of 21; but the industry's average earnings growth for the next five years is 19.9%, while SPWR earnings are projected to grow at an average annual rate of 39.6%. Sunpower's current PEG ratio is 1.1, still quite reasonable for such a promising company and slightly less than the industry average of 1.2. If you subscribe to the theory that alternative energy is going to be to the next 20 years what computer and information tech were to the last 20, then today's Sunpower price may look extraordinarily cheap a few years from now.
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