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Analyzing Renewable Energy Companies’ Sales and Gross Profit

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Sales performance

Plug Power (PLUG) and SolarCity’s (SCTY) sales grew by 140% and 56% on a YoY (year-over-year) basis in fiscal 3Q15. The two companies’ gross profit grew by 56% and 99%.

Plug Power designs, develops, manufactures, and commercializes fuel cell systems for electric lift trucks and material handling equipment. The company offers its products globally to retail, grocery, and institutional food distribution centers as well as manufacturing facilities. It gets most of its revenue from North America. SolarCity offers solar power energy.

FuelCell Energy’s (FCEL) sales fell by 9.5% on a YoY basis. Its gross profit also fell by 7%. It’s important to note that 70% of its revenue comes from foreign sources. Asia-Pacific accounts for its largest source of revenue. It has significant exposure to the Korean Peninsula.

For EnerSys (ENS), the sales grew by 1.2% on a YoY basis. Its gross profit also grew by 2%. North America accounts for a significant portion of its revenue.

The above chart shows these companies’ sales growth and gross profit.

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YTD performance

On a YTD (year-to-date) basis, renewable energy companies like FuelCell Energy, Plug Power, EnerSys, and SolarCity fell by an average of 33%. FuelCell Energy and Plug Power fell by 70% and 29%. EnerSys and SolarCity fell by 8% and 25%, respectively.

The Guggenheim Solar ETF (TAN) and the VanEck Vectors Global Alternate Energy ETF (GEX) fell by 14.3% and 3%, respectively, on a YTD basis. The PowerShares WilderHill Clean Energy ETF (PBW) fell by 15.3% on a YTD basis.

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