TerraForm Global, Inc.
TerraForm Global: SunEdison’s Other Yieldco
SunEdison (SUNEQ) formed TerraForm Global in early 2015 to own and operate renewable energy assets in emerging markets.
What Is a Yieldco?
A yieldco is an investment vehicle formed by a parent company to own operating assets. They’re expected to generate stable cash flows.
SunEdison’s Business Model and How It Works
The Renewable Energy Development segment provides integrated renewable energy (PBW) services that include design, installation, and overseeing operations of clean energy projects.
Vivint Solar Acquisition Plan Triggered SunEdison’s Collapse
SunEdison (SUNEQ) announced the intent to acquire residential rooftop solar (TAN) power provider Vivint Solar (VSLR) on July 19, 2015. However, the market reacted negatively.
What’s the Story behind SunEdison’s Bankruptcy?
Factors that spearheaded SunEdison’s bankruptcy were leveraged acquisitions and the liquidity crisis.
Vivint Solar Acquisition Announcement Triggered SunEdison’s Fall
On July 20, 2016, SunEdison (SUNEQ) announced the acquisition of leading residential rooftop solar player Vivint Solar (VSLR).
What Was SunEdison’s Path to Bankruptcy?
The major factors that led to SunEdison’s bankruptcy were leveraged acquisitions and the liquidity crisis. More than the macro factors, SunEdison’s fall appears to be self-made.
Does TerraForm Global Offer a Value Investing Opportunity?
Based on our preliminary analysis, we can see that SunEdison (SUNE) seems to be under a lot of stress, financially and operationally.
SunEdison: Why $2.4 Billion in Liquidity May Not Be Enough
SunEdison (SUNE) reported $2.4 billion in cash and cash equivalents (including marketable securities) as of September 30, 2015.
TerraForm Global Boasts a Better Balance Sheet than Peers
Compared to SunEdison and TerraForm power, TerraForm Global seems to be in a better financial position with a large part of total assets parked in cash.
Is SunEdison Caught in a Debt Trap?
Debt So far in this series, we’ve looked at operating metrics, liquidity, and fixed assets for SunEdison (SUNE) and its family, including TerraForm Power (TERP) and TerraForm Global (GLBL). Without discussing debt and related metrics, we can’t test the hypothesis in the series title properly. The most important reason for the recent fall in SunEdison’s […]
SunEdison Keeps Crashing and Burning—Now Even Faster
SunEdison (SUNE) has two publicly traded subsidiaries. It offers us the opportunity to analyze each company separately, aiding our quest for value.
Why Care about SunEdison and TerraForm’s Losing Spree?
SunEdison (SUNE), TerraForm Power (TERP), and TerraForm Global (GLBL) have been in the news in recent weeks due to a massive outflow of funds.
Why Has SunEdison Fallen since Its 3Q15 Earnings Announcement?
SunEdison reported its 3Q15 earnings on November 9, 2015. The company reported a loss per share (or LPS) of $0.91 in 3Q15.
FirstSolar and SunEdison: What’s the Biggest Difference?
SunEdison (SUNE) is highly leveraged with total debt of $10.7 billion on its books as of June 30, 2015. This includes the debt on TerraForm Power (TERP) and TerraForm Global’s (GLBL) books.
SunEdison or FirstSolar? Diversification or a Strong Focus?
FirstSolar (FSLR) nailed its 2Q15 earnings. The company’s focus on solar power differentiates it from SunEdison (SUNE).
FirstSolar Records Subdued 1H15 Profits, SunEdison Steady Losses
Despite a very favorable 2Q15, FirstSolar (FSLR) reported $13.0 million in operating losses in 1H15 compared to an operating profit of $141.2 million in 1H14.
SUNE’s TerraForm Global Goes Public, to Focus on Emerging Markets
After launching TerraForm Power (TERP) in 2014, SunEdison (SUNE) launched an IPO of its much hyped emerging market yieldco, TerraForm Global (GLBL), in July 2015.
FirstSolar Focuses on Dollars while SunEdison Focuses on Megawatts
While FirstSolar’s (FSLR) guidance focuses on dollars, SunEdison’s (SUNE) guidance focuses more on capacities.
Why Did SunEdison’s Costs Rise in 2Q15?
Unlike FirstSolar (FSLR), which manufactures much of its solar panel requirements in-house, SunEdison (SUNE) procures its requirements from outside vendors.
FirstSolar and SunEdison’s Cost Performance in 1H15
While FirstSolar (FSLR) exhibited impressive cost performance in 2Q15, its 1H15 cost performance was marred by poor 1Q15 performance.
SunEdison Reports Modest Revenue Growth in 2Q15
While FirstSolar (FSLR) reported a 65% increase in its revenues primarily by selling projects to Southern Company (SO), SunEdison (SUNE) gave up on higher revenue growth by retaining projects.
Why Analyze FirstSolar and SunEdison’s 2Q15 Earnings Together?
FirstSolar (FSLR) and SunEdison (SUNE) have a lot in common. Both these companies earn over half of their total revenues from building solar power plants.
TerraForm Global Was the Highest Junk Bond Issuer Last Week
Junk bond issuance activity was subdued in the week ended July 31 as issuers remained wary of the volatility in the commodities markets and the fall in Chinese equities.