Sunrun Inc

Sunrun's capital structure is highly leveraged, with total liabilities of $19.48 billion and total equity of $3.13 billion, resulting in a debt-to-equity ratio of 4.71. The company's liquidity position is constrained, with negative free cash flow of -$2.77 billion and operating cash flow of -$421.44 million, despite a current ratio of 1.66. The price-to-book ratio of 1.09 and price-to-tangible-book ratio of 1.09 suggest the market values the company close to its tangible asset base. Profitability metrics show mixed results. The company reported a net income of $449.95 million, but operating income was negative at -$126.13 million, indicating operational inefficiencies. Return on equity of 14.36% is strong, but return on assets of 1.99% is weak, suggesting underutilization of assets. Gross profit of $897.30 million represents 30.3% of revenue, which is below the industry median for residential solar providers. Geographically, Sunrun's revenue is concentrated in the United States, with no material international exposure disclosed in the financial snapshot. The company operates in a single business segment focused on residential solar energy systems, with no material diversification into commercial or utility-scale projects. Sunrun's growth trajectory is mixed. Revenue of $2.96 billion represents a 12.4% year-over-year increase, but operating cash flow and free cash flow remain negative. Analysts project a mean price target of $18.51, implying 28% upside from the current market price of $14.44. The company's capital expenditure of -$2.50 billion reflects ongoing investment in solar installations, but this is not yet generating positive operating cash flow. Risk factors include high leverage, negative free cash flow, and a current ratio that, while above 1, is not sufficient to cover short-term obligations in the event of a liquidity shock. The risk assessment flags negative net cash after subtracting total debt as a key concern. Dilution risk is low, with no near-term pressure from share issuance or convertible debt. Recent events include a 10-K filing disclosing continued investment in residential solar installations and a 10-Q filing noting progress in expanding into new markets. The company has not issued material earnings guidance for the current fiscal year.