SunPower CorporationSPWRA

Morningstar Rating

Stock Research and Analysis

by Stephen Simko

The future of the immature and rapidly growing solar industry remains fraught with uncertainty. Still, we believe SunPower has the technology and business model that will allow it to become one of the industry's strongest companies.

We believe SunPower's Read more

Bulls Say

SunPower controls the whole value chain from the receipt of silicon to installing solar systems on-site. The company can thus reduce costs throughout the entire manufacturing and installation process.

SunPower currently manufactures the most-efficient solar cells in the industry. Needing less space to generate the same amount of electricity, SunPower's cells have a meaningful advantage in space-constrained environments.

The company has signed agreements with Macy's M, Target TGT, and Wal-Mart WMT to outfit their California retail locations with solar systems. This could develop into a large opportunity as companies try to enhance their green credentials. Read more

Bears Say

The solar industry has been shaken by the global recession. It is far from clear as to when demand will come back to pre-crisis levels.

The solar industry depends on subsidies for as much as 50% of total installed system costs. Any negative developments in worldwide subsidies would have a profound effect on current demand.

Enormous amounts of capital are being invested in both the solar industry and alternative energy in general. Superior technologies could emerge that SunPower will be unable to compete with. Read more

Strategy

SunPower aims to become the low-cost provider by both being the most vertically integrated solar company and producing solar cells with industry-leading conversion efficiencies. The company is also aggressively Read more

Management

SunPower went public in 2005 after previously being controlled by Cypress Semiconductor Corporation CY. Two share classes exist for SunPower's common stock, and Cypress held 100% of the company's Class B shares until divesting them late in 2008. Although Read more

Profile

SunPower Corporation is a vertically integrated solar products and services company. The company offers a variety of solar cells and panels based on traditional silicon Read more

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