One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Sunrun Inc.
RUN · NMS · Technology · Solar
Current price
$8.11
52-week range
$7.75 - $22.44
Market cap
$1.93B
Balance sheet
Distressed
-0.13x Concerning
Net debt $14.51B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 17.5% last year.
- Reward Trades at 5.5x P/E vs peer median 21.5x (74.4% cheaper).
- Risk Forward P/E (8.0x) is higher than trailing (5.5x) - earnings are expected to drop.
- Risk Net debt grew 73.9% over 3 years.
What this company does
Sunrun Inc.
Sunrun is a leading residential solar company that installs and maintains solar panels and battery storage systems on homes across the United States. It makes most of its money not by selling the systems outright, but by leasing them to homeowners who pay a predictable monthly fee for clean energy, creating a stream of recurring revenue (income the company can reliably count on at regular intervals). This business model makes solar power more affordable for families and provides Sunrun with steady, long-term cash flow from its customers.
How the company got here
Sunrun was founded in 2007 by Lynn Jurich, Edward Fenster, and Nat Kreamer with the idea to make home solar more accessible. They introduced a new approach called "solar-as-a-service," where homeowners could get solar panels installed with little to no upfront cost and pay for the power over time, much like a monthly utility bill. This model helped the company grow quickly, and it went public on the stock market in 2015. A major turning point was in 2020 when Sunrun acquired its large competitor, Vivint Solar, which significantly increased its size and customer base.
What it actually does
Sunrun provides solar panels and home batteries to homeowners in the United States. Instead of a large upfront purchase, customers can often get these systems installed and then pay a predictable monthly fee for the electricity they produce over a long-term agreement, typically 20 to 25 years. The company handles everything from designing the system for your specific roof to installation, monitoring, and maintenance. More recently, Sunrun has put a heavy emphasis on pairing solar panels with battery storage, which allows homeowners to have backup power during outages.
Customer Agreements
This is Sunrun's largest and original line of business, making up more than half of its revenue. Here, homeowners sign a long-term contract (a lease or a Power Purchase Agreement) to have solar panels, and often a battery, installed on their roof. Instead of buying the equipment, the customer pays Sunrun a monthly fee for the clean energy the system produces, which is often less than what they were paying their traditional utility company. Sunrun owns and takes care of the equipment for the life of the agreement.
Solar Energy Systems and Product Sales
This is a smaller but fast-growing part of Sunrun's business. In this segment, the company sells complete solar energy systems directly to homeowners who prefer to own the equipment outright rather than lease it. This part of the business also includes selling solar-related products, like panels and racking equipment, to other resellers. While most of Sunrun's business is based on long-term customer agreements, this segment provides an option for customers who want to purchase their systems and potentially benefit from different financial incentives.
What management is betting on now
Sunrun's leadership is focused on expanding beyond just being an installer and into a broader home energy services company. A major priority is increasing the number of homes that have battery storage, which provides backup power and makes the electric grid more stable. The company is also developing 'virtual power plants,' where they can group together the power from thousands of home batteries to help support the main power grid during times of high demand, creating a new way to earn revenue. Management is also shifting its focus to its own direct sales force rather than relying on outside partners, believing this will lead to higher quality sales and better long-term value.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-156.36M
FY2024 Q4
$-258.99M
Revenue
$869.99M
Net income
$115.15M
Diluted EPS
0.42
Operating cash flow
$-186.18M
Free cash flow
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Sources
Revenue
$722.23M
Net income
$167.64M
Diluted EPS
0.62
Operating cash flow
$10.62M
Free cash flow
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Sources
Revenue
$1.16B
Net income
$103.57M
Diluted EPS
0.38
Operating cash flow
$96.95M
Free cash flow
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Sources
Revenue
$724.56M
Net income
$16.59M
Diluted EPS
0.06
Operating cash flow
$-121.52M
Free cash flow
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Sources
Revenue
$569.34M
Net income
$279.77M
Diluted EPS
1.07
Operating cash flow
$-292.66M
Free cash flow
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Sources
Revenue
$504.27M
Net income
$50.01M
Diluted EPS
0.20
Operating cash flow
$-104.21M
Free cash flow
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Sources
Revenue
$518.49M
Net income
$-2.81B
Diluted EPS
-12.59
Operating cash flow
$-258.36M
Free cash flow
$-258.99M
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Sources
Revenue
$537.17M
Net income
$-83.77M
Diluted EPS
-0.37
Operating cash flow
$-156.16M
Free cash flow
$-156.36M
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Sources
Is it cheap or expensive?
Fair value — vs current price $8.11
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $14.5B. Interest coverage -0.1x.
Net debt
$14.51B
Interest coverage
-0.13x
Sunrun Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
RUN
BASELINE
Sunrun Inc.
Total debt $15.23B Interest coverage -0.13x This is the baseline the peer rows are being compared against.
Total debt $613.36M Interest coverage 36.42x This peer still has a real interest-payment cushion, while RUN does not.
Total debt $407.35M Interest coverage -19.64x Neither company has much profit cushion over interest right now.
Total debt $194.01M Interest coverage 36.18x This peer still has a real interest-payment cushion, while RUN does not.
Total debt $138.18M Interest coverage -1.07x Neither company has much profit cushion over interest right now.
What you should know
The case for and against RUN
2 Rewards
3 Risks
Rewards
-
Revenue grew 17.5% last year.
-
Trades at 5.5x P/E vs peer median 21.5x (74.4% cheaper).
Risks
-
Forward P/E (8.0x) is higher than trailing (5.5x) - earnings are expected to drop.
-
Net debt grew 73.9% over 3 years.
-
Return on equity was -19.9% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
5.52x
Forward P/E
7.99x
P/B
0.56x
P/S
0.56x
EV/EBITDA
21.62x
PEG ratio
3.07x
Profitability
How much profit each dollar creates
Gross margin
35.3%
Operating margin
4.0%
Net margin
11.6%
ROE
-19.9%
ROA
0.3%
Health
Liquidity and balance-sheet strength
Debt / equity
2.93x
Current ratio
1.42x
Quick ratio
0.63x
Total debt
$15.23B
Total cash
$726.43M
Growth
How the business has been compounding
Revenue TTM
$3.48B
Revenue 5Y CAGR
16.4%
EPS TTM
1.47
EPS 5Y CAGR
28.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$-200.13M
Free CF TTM
$-767.73M
FCF margin
-22.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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