Boston, MA 10/21/2013 (wallstreetpr) – Despite controlling roughly 20% of the roof-top solar installation, Real Goods Solar, Inc. (NASDAQ:RSOL) is not seeing enough light at the end of the tunnel for its businesses. Offering complete solar solution, RSOL is a company with a host of opportunities. However, the company didn’t perform quite well last week. In fact on Friday, the $109.73 billion company dipped 7.16% in share value to finish $3.63.
RSOL’s primary business is in residential, commercial and utility solar energy construction, engineering and procurement in the U.S. The company provides a complete solution in this business segment. This means that it also offers financing options for its products. However, despite all these opportunities, this stock may be a quick sell.
It basically has porous walls as its strengths have been severely battered by multiple weaknesses such as unattractive per share earnings, unreasonable debt levels, poor ROE, low net income and downward sliding profit margins.
In major highlights, RSOL comes through as a company heading into a tough cash crunch given its quick ratio that stands poorly at 0.84. Basically this signifies a company’s inability to stay safe from cash flow problems.
Yet another issue of great concern is the company’s high risk debt management levels. In the debt-equity ratio, RSOL stands at 3.54, a position which implies higher risk. In fact, this risk figure is higher than the industry’s average. So this means RSOL is quickly becoming a radioactive stock for investors.
In relation to other players in the electronic equipment and related industry, the solar company has a poor ROE which actually lags behind the S&P 500 and the overall industry.
A look at the company’s profit margins also leaves a lot to be desired – and be worried about. It has 23.92% in profit margin, indicating a significant decline from a comparable quarter in the earlier year.
Yet another issue of serious concern is the company’s dwindling EPS which in the most recent quarter, indicate a 22.2% downward slide from a comparable duration last year.
Generally there are quite a lot to raise alarm in RSOL. The company’s mandarins will have to scratch their head a lot to get investors excited.