NRG Solar Earnings Report: 2015’s Top Solar Players

The earnings season has started, and investors are looking for signs of life

The first few days of earnings season have brought good and bad news. On the one hand, major players like Apple and Google reported decent profits. On the other, small- and mid-cap stocks succumbed to the broader market decline.

It’s important to note that, notwithstanding the dismal start to the year, there are still a handful of companies that you should consider owning. One such company is NRG Solar, an alternative energy producer that mines coal in Australia and then converts it into solar power.

In this article, we’ll highlight three reasons why you should consider purchasing shares in this renewable energy pioneer.

An Attractive Margin Structure

One of the primary reasons behind the recent price surge is the company’s generous equity financing structure. Specifically, NRG Solar offers a 5% cash dividend and 0% long-term debt. Moreover, the stock grants 20% annual free swings in pay (based on a $1,000 investment) as long as the price is less than $40.

Now, this is certainly an attractive proposition for income investors who want to capitalize on the steady influx of cheap capital in today’s market. However, there’s also a significant portion of retail investors who want to get in on the ground floor of a stock market rise. And for those individuals, the generous margin structure makes a compelling case to purchase shares in this company.

A Steady Product Flow

Another reason why you should consider purchasing shares in this company is its ability to generate a steady stream of revenue. Specifically, in 2015, the company’s sales rose by 19% to $3.1 billion, which was a testament to the strong demand for solar power technologies. Moreover, thanks to the increase in solar installation, the demand for its components like solar cells and solar panels grew by 12% and 21%, respectively.

Based on the above figures, it’s crystal clear that the renewable energy industry is a bet on the future. And what’s more, the demand for solar power is here to stay. As a result, shares in this company are well positioned for long-term growth.

Last but not least, it’s important to remember that in Australia, over 90% of the population has access to cheaper energy. This fact combined with the steadily increasing cost of oil makes the country an ideal place for energy producers like NRG Solar. In addition, the fact that Australia is a major exporter of LNG makes it even more attractive. Thus, if you’re looking for a proven business model in a promising sector, then Australia could be the place to be.

A Brand Name

Finally, we need to discuss the company’s brand name, which is essentially unrivaled within the renewable energy industry. Specifically, in 2015 alone, the company generated $45 billion in revenue, and half of that came from overseas markets. Moreover, overseas markets like France and Germany purchased a combined total of nearly 400 million kWh of solar energy, more than any other country in Europe. And all of this was made possible by one company: NRG Solar.

This sort of international demand, which came as a direct result of the company’s brand name and market leadership, gives shareholders the reassurance of knowing that they’re investing in a proven business.

With each of the above figures representing a three-year average, it’s clear that NRG Solar is a well-established brand with international clout. And given the current market climate, it’s a brand you can’t afford to miss. As a result, shares in this company are well-positioned for long-term growth and offer a good chance at higher returns.

To learn more, be sure to check out the company’s website and review its financial reports. Doing so will give you a good idea of how efficient, and importantly, profitable this company is. Consequently, with a brand name like NRG Solar and a promising future ahead, what reason could you have not to own this stock?

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