Is Maxeon Solar (USA Stocks:MAXN) undervalued?
 | By Aina Ster | Macroaxis Story |
Maxeon Solar Technologies, a key player in the Solar Industry, is a promising investment opportunity for September. Despite its current negative EPS estimate of $0.47 for the current quarter and $0.37 for the next, the company has shown a robust quarterly revenue growth of 42.7%. This growth, coupled with the Wall Street target price of $38.57 and the naive expected forecast value of $20.55, indicates potential for substantial returns. Maxeon's market capitalization stands at $1.2B, demonstrating its significant presence in the NASDAQ Exchange. However, investors should be aware of the company's financial challenges, including a net income loss of $267.1M from continuing operations, EBITDA loss of $63.2M, and gross profit loss of $32.8M. Despite these figures, with a workforce of 5.3K full-time employees, Maxeon continues to be a significant player in the Semiconductors & Semiconductor Equipment service category within the Technology sector. With many millennials showing keen interest in the semiconductors and semiconductor equipment space, it seems appropriate to revisit Maxeon Solar Technologies. Why do we maintain our confidence in a swift recovery? In this article, I will delve into some crucial factors influencing Maxeon Solar's products, and illustrate how these may affect the company's outlook for active traders this year.
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Reviewed by Gabriel Shpitalnik
Maxeon Solar Technologies has a Beta (Market Risk) of 0.2757, indicating relatively minor fluctuations compared to the market. As market returns increase, Maxeon Solar's returns are expected to rise, albeit less than the market. Conversely, during a bear market, the losses from holding Maxeon Solar are anticipated to be smaller.
While it's crucial to monitor Maxeon Solar Technologies' price patterns, caution is advised when using equity's historical price patterns. Our approach to predicting a stock's future performance involves examining both its past performance charts and the overall business, including all available technical indicators.
Maxeon Solar Technologies presents fifteen different technical indicators that can assist in evaluating its performance. The company is projected to return -0.7%. It's important to verify Maxeon Solar Technologies' risk-adjusted performance and variance, as well as the relationship between the variance and potential upside. This will help determine if Maxeon Solar Technologies' past performance will be replicated at some point in the near future.
Widened examination
Maxeon Solar Technologies, a key player in the Semiconductors & Semiconductor Equipment industry, is emerging as a promising investment opportunity for September. With a revenue per share of 28.11, the company is demonstrating a strong financial footing. Despite a maximum drawdown of 40.37, Maxeon Solar Technologies has a potential upside of 5.08, indicating the possibility of substantial gains for investors. However, investors should be aware of the company's Jensen Alpha of -0.18, which suggests a loss in the expected return. Moreover, the company's market risk adjusted performance is at -0.58, suggesting a high level of risk associated with the investment. Overall, while Maxeon Solar Technologies presents some risks, the potential for high returns makes it a stock to watch in September. The performance of Maxeon Solar Technologies in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Maxeon Solar's stock prices. When investing in Maxeon Solar, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Maxeon Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Maxeon Solar carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is Maxeon Solar's Liquidity
Maxeon Solar financial leverage refers to using borrowed capital as a funding source to finance Maxeon Solar Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Maxeon Solar financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Maxeon Solar's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Maxeon Solar's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Maxeon Solar's total debt and its cash.
Maxeon Solar Gross Profit
Maxeon Solar Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Maxeon Solar previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Maxeon Solar Gross Profit growth over the last 10 years. Please check Maxeon Solar's gross profit and other fundamental indicators for more details.
Details
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Maxeon Solar has an asset utilization ratio of 84.11 percent. This suggests that the company is making $0.84 for each dollar of assets. An increasing asset utilization means that Maxeon Solar Technologies is more efficient with each dollar of assets it utilizes for everyday operations. Maxeon Solar Technologies, a prominent player in the Solar industry, presents potential investment opportunities this September. The company, listed on the NASDAQ under the code MAXN, boasts a market capitalization of 1.19 billion and a book value of 1.506. Despite a negative income of 267.1 million, Maxeon's current ratio of 1.35X and working capital of 214.82 million suggest a healthy financial footing.The firm's quarterly revenue growth is impressive at 42.7%, with revenue per share standing at 28.108. However, investors should note the company's high probability of bankruptcy at 63.63%, which is reflected in its total risk alpha of -0.63 and Treynor Ratio of -0.59. The company's beta of 1.4 suggests it is more volatile than the market, a characteristic further emphasized by a standard deviation of 5.21 and kurtosis of 16.42. Maxeon's shares are currently trading at a price to book ratio of 7.21X and price to sales ratio of 1.02X. With a Wall Street target price of 38.57 and potential upside of 5.08, Maxeon Solar Technologies could be a stock to watch this September. However, given the inherent risks, investors are advised to conduct thorough due diligence before making any investment decisions. .
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