Essential Facts About Sunrise New Energy Co

We've been asking ourselves recently if the market has placed a fair valuation on Sunrise New Energy Co. Let's dive into some of the fundamental values of this Small-Cap Consumer Discretionary company to determine if there might be an opportunity here for value-minded investors.

Sunrise New Energy Co Has an Attractive P/B Ratio but a Worrisome P/E Ratio:

Sunrise New Energy Co., Ltd. engages in the manufacture and sale of graphite anode material for EVs and other lithium-ion batteries. The company belongs to the Consumer Discretionary sector, which has an average price to earnings (P/E) ratio of 22.33 and an average price to book (P/B) ratio of 3.12. In contrast, Sunrise New Energy Co has a trailing 12 month P/E ratio of -2.4 and a P/B ratio of 1.69.

The Company Has a Positive Net Current Asset Value:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (k) $17,925 $23,181 $7,409 $38,126
Gross Margins 88.2% 87.1% 47.5% -3.5%
Operating Margins 60.1% 63.5% -100.0% -42.4%
Net Margins 54.37% 52.14% -113.42% -58.76%
Net Income (k) $9,746 $12,088 -$8,403 -$22,404
Net Interest Expense (k) $212 $214 $173 -$27
Depreciation & Amort. (k) -$496 -$1,225 -$1,079 -$2,402
Earnings Per Share $0.41 $0.54 -$0.36 -$0.88
EPS Growth n/a 31.71% -166.67% -144.44%
Diluted Shares (k) 23,520 22,400 23,639 25,362
Free Cash Flow (k) -$2,313 $2,379 -$13,553 -$53,660
Capital Expenditures -$3,549 -$4,459 -$8,320 -$44,087
Net Current Assets (k) $12,591 $22,671 $32,625 $10,977
Current Ratio 2.85 5.06 19.96 1.72
Long Term Debt (k) n/a n/a n/a $4,079
LT Debt to Equity n/a n/a n/a 0.13

Sunrise New Energy Co has growing revenues and increasing reinvestment in the business, healthy debt levels, and wider gross margins than its peer group. However, Sunrise New Energy Co has consistently negative margins with a negative growth trend, declining EPS growth, and negative and highly variable cash flows. Finally, we note that Sunrise New Energy Co has a decent current ratio.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.