After falling out of favor with investors for some time now, solar stocks are surging after U.S. inflation cooled in October and Treasury yields dropped. The Invesco Solar ETF that tracks the industry has rebounded, gaining about 9%, and considering the impressive projections for solar capacity additions in the United States for 2023, this might be the perfect time for investors to consider keeping some solar stocks on their watchlist.
SinglePoint Inc. (OTCQB:SING) is a diversified holding company that offers integrated solar energy services, mainly through its majority-owned subsidiary, Boston Solar, and air purification solutions through its Box Pure Air unit.
Established back in 2011, Boston Solar has had an impressive track record in the residential solar market and has so far installed more than 5,000 residential and commercial solar systems in New England, mostly in Massachusetts. SinglePoint took an 80.1% stake in the business in 2022.
On the other hand, Box Pure Air distributes industrial-grade air purification products designed and manufactured for schools and commercial buildings. SinglePoint Inc. (OTCQB:SING) initially bought a 51% stake in the company back in 2021 before finally acquiring the remaining stake in October this year, making it a 100% wholly owned subsidiary. Essentially, that deal sets SinglePoint up to capitalize on the over $121 billion in federally allocated funds to enhance indoor air quality in the nation's schools.
The company also has ownership interests in various non-core businesses dealing in the marketing industry, among others. SinglePoint Inc. (OTCQB:SING) recently reported third quarter earnings, and the impressive financial performance reaffirms its future growth prospects.
Among the major highlights was that the company substantially grew revenue for the nine months ended September 30, 2023, to about $20.78 million from about $12.67 million in the same period of 2022. This 81% growth was primarily attributed to the full incorporation of Boston Solar revenues. On a quarter over quarter basis, revenue also increased with the three months ended September 30, booking about $6.91 million in revenue as compared to about $6.59 million for the same period last year.
Thanks to the management’s focus on cost cutting strategies, sales, general, and administrative expenses (SG&A) for the quarter declined to about $3.17 million compared to $3.7 million for the prior year period, clearly demonstrating the company’s commitment to operational efficiency and cost control.
More importantly, the company's net loss for the quarter fell to about $1.27 million, a notable improvement from the net loss of about $1.6 million for the same period in 2022. Higher revenues and lower operating costs were the main drivers of this reduction in net loss. Going forward, SinglePoint Inc. (OTCQB:SING) expects to benefit from spreading certain fixed costs over a higher revenue base as it continues to scale operations.
CEO of Singlepoint, Wil Ralston noted, “We are seeing significant growth opportunities in commercial solar in the New England area, and the addition of Mike Ricci to the commercial business gives us another dynamic, experienced professional to leverage the success of Boston Solar Residential business. This combination, along with the rest of the leadership team, has Boston Solar positioned to continue increasing revenue and grabbing market share as the solar provider of choice in the Boston metro area, the state of Massachusetts, and throughout New England as we continue to expand our regional business footprint."
Boston Solar has reaffirmed its commitment to creating free cash flow in addition to delivering annual revenue growth through 2024. The company is now finishing off the current year strong and heading into the new year with several installed commercial projects and a growing multi-million-dollar backlog of contracted projects in 2024.
Additionally, SinglePoint Inc. (OTCQB:SING) subsidiary Frontline Power Solutions (FPS) recently revealed that it had solidified a significant exclusive energy advisory agreement and a substantial 7.1 million kWh energy services contract with a renowned national property management firm. This pivotal achievement represents the second-largest energy contract in FPS's impressive track record, highlighting the opportunity for exponential growth since SING’s investment in the company. This strategic move is set to generate approximately $110,000 in cost savings for the client over the term of the contract. This deal not only further reinforces SinglePoint’s position as a leader in the energy management space but has also helped the company grow its recurring KwH to over 18 million KwH sold on a year-to-date basis.
SinglePoint Inc. (OTCQB:SING) aims to provide complete energy solutions to its clients while also providing investors with a unique opportunity to profit from this vertical integration by combining its offerings in solar, EV charging, energy storage, and energy brokerage services with premium energy providers.
And as mentioned earlier, the outlook for the solar industry is quite bright. The Solar Energy Industries Association (SEIA) has set an ambitious goal to have solar power produce 30% of the nation's energy by 2030, which has put the solar energy industry in the United States at a critical turning point. This means that at least 48 GW of solar capacity needs to be added each year to meet this goal. Taking into account the fact that Massachusetts leads the nation in solar installations and Boston Solar’s leadership in that market, it seems highly likely that the company is well positioned to reap big benefits from this new capacity to be installed.
At the moment, solar stocks like SinglePoint Inc. (OTCQB:SING) have seen valuations drop to multi-year lows in spite of the fundamentals of the broader industry remaining strong, making this the perfect time to add it to your watchlist.
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