- Solar Alliance Energy (TSXV:SOLR), an underpriced renewable energy stock, has completed its first profitable quarter, posting C$975,712 in net income in Q3 2023
- The company credits the milestone to a focus on larger customers, strategic growth and cost efficiencies
- Solar Alliance Energy offers turnkey energy solutions in the commercial, utility and community solar sectors
- Solar Alliance Energy stock (TSXV:SOLR) is down by 42.86 per cent year-over-year and flat since 2018, affording it a market capitalization of C$11 million, despite a pipeline of more than C$50 million in projects
Solar Alliance Energy (TSXV:SOLR), an underpriced renewable energy stock, has completed its first profitable quarter, posting C$975,712 in net income in Q3 2023. The milestone compares to a net loss of C$220,529 year-over-year.
Revenue for the quarter, which ended Sept. 30, was C$2,410,725, down from C$2,753,628 year-over-year, reflecting a focus on larger, higher-margin projects in Solar Alliance’s construction pipeline.
Cost of sales was C$922,934, down from C$2,185,366 in Q3 2022, yielding a gross profit of C$1,487,791, up from C$568,262 in Q3 2022.
Total expenses came to C$600,316, down from C$1,240,250 year-over-year, substantiating the company’s focus on identifying and implementing overhead efficiencies.
Solar Alliance held cash at quarter’s end of C$400,923 with a contracted project backlog of approximately C$5.4 million, paving the way for continued revenue growth into 2024. Revenue grew by 143 per cent from C$1.98 million in 2018 to C$4.83 million by the end of 2022.
Key projects on the go include a 565 kilowatt (kW) commercial solar project for a manufacturing client, an 872 kW solar project, an a two-project job measuring 250 kW and 299 kW, respectively, all of them in Tennessee.
The company also launched its Solar Alliance Affiliate Program as part of its organic growth strategy in the Southeast U.S., as it continues to focus on larger commercial and industrial customers, as well as accretive acquisition candidates.
“The third quarter of 2023 was transformative for Solar Alliance as we delivered net income of C$975,000 through responsible growth in the U.S. commercial solar sector,” Myke Clark, CEO of Solar Alliance Energy, said in a statement. “Our strategic focus on larger, higher-margin commercial solar projects, combined with diligent cost control, has resulted in stronger gross margins and the first profitable quarter in the company’s commercial solar history.”
“The combination of revenue to date, the contracted backlog of projects that is expected to be built before the end of the year and significant work-in-process support another strong year of growth. We have managed our contracted backlog, which is approximately C$5.4 million, to a level that we feel allows rapid conversion to revenue while still maintaining our highest standards of execution. We remain committed to growing the company with an emphasis on profitability and we believe our business plan and contracted backlog support this strategy,” he added.
Solar Alliance Energy stock (TSXV:SOLR) last traded at C$0.04 per share. The stock is down by 42.86 per cent year-over-year and flat since 2018, affording it a market capitalization of C$11 million. This performance suggests the market is failing to recognize the value the company has managed to create to date, including a pipeline of more than C$50 million in projects, its first profitable quarter in Q3 2023, and an experienced management team that has developed more than C$1 billion of renewable energy projects equipped to continue profitability into the future.
Solar Alliance Energy offers turnkey energy solutions in the commercial, utility and community solar sectors. The company builds, owns and operates its own solar assets while generating revenue through the sale and installation of solar projects to commercial and utility customers.
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