SIRC Stock: Financial Analysis of Solar Integrated Roofing

Solar Integrated Roofing Corporation (SIRC) is a company whose stock is traded on the PNK exchange. As of the latest stock quote data, its price was 0.03, with a change percentage of 13.36%. The market capitalization was 15.78 million, and its 50-day moving average price was 0.1 and 200-day moving average price was 0.21. The volume traded was 26.07 million with an average volume of 3.99 million. SIRC stock opened at 0.03, and its previous close was also 0.03. SIRC stock  had a negative earnings per share (EPS) of -0.02, which resulted in a negative price to earnings (P/E) ratio of -1.58.

Term Note from Institutional Investor

Solar Integrated Roofing Corporation (SIRC) has secured a term note worth $25 million from an institutional investor. The terms of the note include an interest rate of 6% and a 5% discount at the time of issue. The note will convert into common stock at a fixed price of $4.00 per share, unless there is a default. The maturity date for each drawdown will be set six months from the date of issuance.

David Massey, CEO of SIRC stock , sees this term note as a boost to SIRC stock ‘s efforts to improve operating cash flows and profitability in the near future. He believes that positive cash flows are vital for enhancing shareholder value and creating long-term sustainability for SIRC stock ‘s shareholders.

SIRC Stock Update on EV Charging Stations

Recently, Solar Integrated Roofing Corporation (SIRC) announced on its company Twitter account that its subsidiary, PLEMCo, has installed 10 pedestal-mounted Webasto EV Solutions electric vehicle (EV) chargers along with a central load management controller at the Acton Library. The central load management controller gives the chargers smart capabilities. This is an exciting update for EV owners.

Retirement of Class C Preferred Stock

In another news Solar Integrated Roofing Corp. has retired its Class C Preferred Stock, which was part of its acquisition of Enerev in 2021. The CEO of SIRC, George B. Holmes, said that this move would simplify SIRC stock ‘s financial structure and boost profits from the acquisition. Meanwhile, Trent Crane, the founder of Enerev, has been promoted to Regional Vice President of Sales for California. In this role, he will be responsible for managing all sales and customer service in the state. Trent also noted that there’s a lot of growth potential for SIRC stock  in the California solar market. The Class C Preferred Stock entitled its holder to receive 49% of Enerev’s net profit each year, but SIRC has redeemed it by issuing 8 million common stock shares.

Financial Health Analysis of SIRC stock

Based on the given financial data, it appears that SIRC stock  has a current ratio of 1.54, which is a measure of its ability to pay short-term obligations. A current ratio of 1.54 indicates that SIRC stock  has enough current assets to cover its current liabilities. However, the quick ratio of 0.11 and cash ratio of 0.01 are both low, indicating that SIRC stock  has limited ability to pay its short-term obligations with liquid assets.

In terms of its accounts receivable, SIRC stock  has a days of sales outstanding (DSO) of 35.13, which suggests that it takes 35.13 days on average for SIRC stock  to collect payment from its customers. The days of inventory outstanding (DIO) is 1.28, indicating that SIRC stock  turns over its inventory relatively quickly. However, the operating cycle (DIO + DSO) of 9.94 is relatively long, indicating that SIRC stock  takes a long time to convert its inventory into cash.

SIRC stock ‘s profitability metrics are relatively low, with a gross profit margin of 0.25, operating profit margin of 0.13, and net profit margin of 0.11. The effective tax rate of -0.05 indicates that SIRC stock  has a negative tax liability. The return on assets (ROA) of 0.04 and return on equity (ROE) of 0.29 are relatively low, indicating that SIRC stock  is not generating high returns on its assets and equity.

SIRC stock  has a debt ratio of 0.4, indicating that 40% of its assets are financed with debt. The debt equity ratio of 0.67 indicates that SIRC stock  has a high level of debt relative to equity. The long-term debt to capitalization of 0.03 and total debt to capitalization of 0.22 are relatively low, indicating that SIRC stock  has a relatively low level of debt relative to its capital. The interest coverage (EBIT/Interest Expense) of 6.84 indicates that SIRC stock  is able to cover its interest expenses with its earnings.

Finally, SIRC stock ‘s receivables turnover of 10.39 and payables turnover of 45.49 indicate that it is relatively efficient in managing its accounts receivable and payable. The inventory turnover of 284.56 is very high, indicating that SIRC stock  is effectively managing its inventory. The fixed asset turnover of 14.71 and asset turnover of 0.37 are relatively low, indicating that SIRC stock  is not generating high revenue from its assets. The enterprise value multiple of 3.42 suggests that SIRC stock ‘s valuation is relatively high compared to its earnings and assets.

In conclusion, based on the given financial data, it appears that SIRC stock  has limited ability to pay its short-term obligations with liquid assets, low profitability metrics, and a high level of debt relative to equity. However, SIRC stock  is relatively efficient in managing its accounts receivable and payable and is effectively managing its inventory. SIRC stock ‘s valuation is relatively high compared to its earnings and assets.

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