TerraForm Power Inc
TerraForm Power: SunEdison’s Investment Yield Vehicle
SunEdison (SUNEQ) launched a yieldco under the name SunEdison Yieldco in January 2014, which was renamed TerraForm Power in May 2014.
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.
Why SunEdison’s Leverage Keeps Growing—Even after GLBL IPO
SunEdison’s leverage is a major concern among investors and analysts.
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.
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.
SunEdison to Acquire Vivint Solar for $2.2 billion
On July 20, 2015, SunEdison (SUNE) announced that it has entered into an agreement to acquire Vivint Solar (VSLR) for $2.2 billion in cash and stock.
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.
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.
8point3 Energy Makes Headlines in 2Q15
SunPower’s 128 megawatt Henrietta Solar Power project and 60 MW Hooper Solar Project are part of the right of first offer agreement with 8point3 Energy.
SunEdison: Risks and Potential for Performance Improvement
The solar energy industry is facing increasing demand, and SunEdison’s expanding capabilities across the solar value chain may allow it to achieve high performance in the coming years.
TerraForm Power: A Look at Pipeline and Profitability
Since its inception, the megawatt hours sold by TerraForm increased significantly. These hours represent the volume of generated electricity, which increased 1100% year-over-year from 2013 to 2014.
SunEdison’s Solar Energy Business: Strategy and Cost Control
Despite the strong growth in interconnected solar energy capacity, SunEdison’s segment revenues have not followed the same trends,
Understanding SunEdison’s Business Model
SunEdison’s business model is divided into three revenue segments: Solar Energy, Semiconductor Materials, and TerraForm Power.
SunEdison’s Place in the Solar Energy Industry
SunEdison develops and sells photovoltaic energy solutions. SunEdison’s stock price rose 623%, going from just over $4.00 in January 2012 to $29.59 as of July 1, 2015.
SunEdison’s Balance Sheet: A Look at Leverage and Liquidity
SunEdison’s cash assets increased over 36% from 2013 to 2014. Its quick ratio was over 2 before its acquisition and restructuring activities in 2009, declining steadily to 0.45 for fiscal 2014.
Yieldco: A Green Investment Option That Pays
While REITs started trading in 1951 and MLPs started off in 1981, the first yieldco was floated in 2005 by Seaspan Corporation, a shipping company.
Things to Look at Before Investing in a Yieldco
A yieldco should have enough operating projects to diversify risks related to operations, geography, and creditworthiness.
Key Yieldco Terms Investors Should Know
Yieldco terms include cash available for distribution, or CAD—a commonly used performance measure for yieldcos, REITS, and MLPs.
TerraForm Power: Where the Wind Meets the Sun
TerraForm Power offers a good mix of residential solar, utility-scale solar, and wind energy assets.
Yieldcos With Organic Growth Prospects – Part 2
On the basis of agreed ROFO assets alone, TerraForm Power and 8Point3 Energy offer the best growth prospects.
Yieldcos: Make Hay While the Sun is Shining
Unlike MLPs, yieldcos aren’t exempt from corporate taxes. Instead, they rely on depreciation and tax credits to minimize tax expenses.
NRG Yield and NextEra Energy Partners Shine on Exchanges
NextEra Energy Partners closed at $32.00 on June 27, 2014, its first day of trading. Its total return is 33%, or 48% annualized, up until March 19, 2015.
SunPower and First Solar announce plans for a joint yieldco
On February 23, 2015, First Solar (FSLR) and SunPower (SPWR) announced plans to set up a joint yieldco.