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.
