So, what exactly is involved in calculating solar panels cost in Del Mar? When thinking about solar power very few people know the way the cost of solar panel systems is actually measured. Or even, for that matter, do we automatically grasp the connection relating to the cost of solar power and the value of solar power. We all know that gasoline prices are in dollars per gallon. We likewise are all aware of approximately how far we’ll be able to drive after spending 40 bucks for a tank of gas. In contrast to a tank of gas, the value of which can be consumed pretty much instantly, solar panels deliver their value across a period of time.
Del Mar 3 Undervalued Solar Leaders
Recent Macro News
Source: Wallstreetdaily, SCMP, CNN Money
The last 2 quarters have seen influential countries such as china, India and Saudi Arabia announce heavy commitments to investing in solar infrastructure. The news isn't particularly surprising if you are aware of the hazardous pollution levels in China and India. China, the most populated country in the world, claimed that it will spend over $361 billion on renewable energy development by 2020. According to China's National Development and Reform Commission (NDRC), 40% of that spending will go towards solar and that will result in more than 1000 major solar plants, boosting china's solar capacity by 5 times.
Khalid Al-Falih, the energy minister of Saudi Arabia, announced that the oil capital of the world plans to spend as much as $50 billion on renewable energy. The short-term goal is to generate 10 GW of electricity through solar and wind by 2023. Al-Falih remarks that the long-term goal is to have renewable energy account for 30% of the country's total energy consumption by 2030.
Forbes states that India has installed 5.4 GW in 2016, and the Ministry of New and Renewable Energy estimates 15 GW (estimates to around 22% of global demand in 2017) and 16 GW of solar installation for the next two years. The Indian Government aims to accumulate 100 GW of solar by 2022, a feat which will require around $90 billion in total.
The combined future solar spending by these three countries, as well as the rest of the world, is an enormous pie to split between the big players in industry. In this article, I will use fundamental data to compare First Solar (NASDAQ:FSLR), Canadian Solar (NASDAQ:CSIQ) and JinkoSolar (NYSE:JKS), 3 heavily undervalued solar leaders which are well positioned to meet increasing global demand. All financial figures are expressed in USD via Bloomberg.
First Solar's $3.94 billion market cap is by far the largest in this group. First Solar is the only company on this list headquartered in the US and has an American management team. Canadian Solar's $855 million market cap is the next highest. Canadian Solar is based in Guelph, Canada, but the management team and production is predominantly Chinese. JinkoSolar's $542 million market is the lowest of the bunch. The company is entirely Chinese from its headquarters to production.
Revenue & Gross Profit & Net income
Please note that analyst consensus Q4 revenue and net income are used to estimate full-year 2016 revenue for Canadian Solar and JinkoSolar. On a GAAP basis, First Solar reported $2.951 billion in revenue and $704 million in gross profit for 2016. Net income came out to be -$382 million due to a $729 million unusual expense which we believe to be asset write-offs. Canadian Solar is expected to earn $2.871 billion in revenue, $459 million in gross profit and $89 million in net income. JinkoSolar is projected to pull in $3.331 billion in revenue, $647 million gross profit and $125 million in net income. JinkoSolar leads the pack in revenue and net income due to the tremendous demand for solar in China, where JinkoSolar conducts a majority of its business. First Solar boasts the highest gross margin at 24% while Canadian Solar and JinkoSolar have gross margins of 16% and 19%, respectively.
Cash & Debt
Looking at the balance sheets of these 3 companies, it's clear why First Solar is trading at a higher earnings multiple compared to its peers. First Solar currently has more than 10x cash on hand than total debt and actually received $5 million in interest income in 2016. Canadian Solar has $481 million cash on hand and a heavy debt load of $2.344 billion. The company is paying an estimated $52 million in interest expense (first 3 quarters annualized). JinkoSolar has $2.663 billion in debt, the highest of the three and dwarfs First Solar's debt of $188 million. JinkoSolar is estimated to pay a substantial $95 million interest payment in 2016 (first 3 quarters annualized). Although Canadian Solar and JinkoSolar are carrying high levels of debt, one must note that Canadian Solar and JinkoSolar have historically financed their projects with debt rather than equity.
Current Price vs. Book Value
All three solar leaders are currently undervalued relative to their book value. First Solar, with over $2.4 billion in retained earnings, is trading 22% below book value. JinkoSolar has been GAAP profitable for the past 10 quarters and accumulated $339 million in retained earnings during the same period. JinkoSolar is currently trading 28% below book value. Canadian Solar at its current price of $15 is trading just $1 below its book value of $16, but the company has been steadily growing its retained earnings from $47 million in Q4 2014 to $294 million as of Q3 2016.
First Solar, with 22 covering analysts, has 5 buy ratings, 4 sell ratings and 13 hold ratings. First Solar is currently trading right around the analyst target of $35.9. Canadian Solar, with 2 buy ratings, 2 sell ratings and 7 hold ratings, is trading slightly below its price target of $15.2. JinkoSolar, with only 7 covering analysts, has 3 buy ratings and 4 hold ratings. The analyst target of $23.2 represents a 36% upside from the stock's current price.
Although we believe all three stocks have bright futures, we currently hold Canadian Solar only. Although Canadian Solar's P/E is not as low as JinkoSolar's and the company's book value is below both of its peers, we remain enticed by Canadian Solar's diverse project portfolio. Since its inception, 100% of JinkoSolar's revenue came from the People's Republic of China. In 2016, 83% of First Solar's revenue came from the US, 5.4% came from India and 11.7% from various other countries. For the 12 months ending 9/30/2016, Canadian Solar derived 41.7% of its revenue from Asia, 46.8% from America (a good portion of which is from Canada) and 11.5% from Europe + other foreign countries. We believe Canadian Solar's diversified global presence positions the company tremendously to meet the increasing global demand for solar. We will continue to buy on dips and may initiate a position in JinkoSolar in the near future.
Disclosure: I am/we are long CSIQ.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
How to Add Solar Panels to a Flat Roof
To Find Out What Your Dream Means, You Need to Be Honest With Yourself
For the most part, dreams are challenging us to be honest about who we are, what we want, what we fear, what causes us pain, our insecurities and the things that are holding us back in life. Dreams often tell us where we’re at in terms of what’s going well and what’s going not so well in our lives.
Our subconscious is like our own personal therapist and we’d be wise to listen to her!
Getting into dream interpretation has so many benefits. It can bring liberation, self awareness, self knowledge, a strong connection to our inner selves and an awareness of our emotions.
Dream interpretation is a massive topic, but this article will explain many of the most important elements you'll need to interpret your dreams.
Step 1: Determine the Function of Your Dream
You can go a long way towards answering the question of what your dreams mean by identifying which of the following functions the dream you want to interpret may be able to serve.
For example, if you were watching a movie about vampires and that night you have a dream about vampires, then the most logical function of that dream, taken from the list below, would be "Organizing Knowledge & Experience." Your brain took in certain elements of the movie and the dream's purpose is to organize them into your existing knowledge base.
The Main Functions of Dreams
- Expressing and processing emotions
- Maintaining or improving mental health
- Providing information on what we want, need, think or feel
- Giving sexual release
- Organising knowledge and experiences – de-fragging the mind like a computer
- Learning (making connections)
- Helping with problem solving (creativity, thinking out of the box, new inventions, finding solutions)
- Providing wish-fulfillment (e.g. having a sexy dream with someone famous)
- Connecting to spiritual realities (rare!)
Through lucid dreaming and dream incubation, we can develop confidence in ourselves and any area of our lives that we choose to. We can also go on some amazing adventures!
Step 2: Don't Ignore Your Emotions
The emotions we experience in our dreams are one of the most important aspects to dream interpretation. Believe it or not, our dreams are trying to be obvious! Understanding dream language can take a bit of practice but once you get into the right mindset you’ll find the majority of your dreams can be interpreted quickly and easily.
An Example of Why Emotions in Dreams are Important
If you are driving a fast car in your dream and feel exhilarated, this could mean you're progressing at a great speed in some area of your life and you are finding it exhilarating and exciting.
- But, what if you are driving a fast car and feel terrified of crashing? The meaning will be vastly different. Something along the lines of, you are traveling too fast in an area of your life and feel out of control.
- Or, what if you are driving in a fast car that will only do 10 miles an hour and you feel impotent and frustrated? You would need to look at what is holding you back in life either through inside or outside circumstances.
Make a special note of your feelings in relation to each symbol that appears in your dream as it's going to give you some of the most valuable information on the dream's message to you.
The Relevance of Recent and Past Events in Dreams
- Recent events come up a lot in our dreams. Sometimes it is because our minds are trying to process and organise what happened, other times they offer the mind handy symbols to present other information.
- Past events, people and places also come into our dreams frequently. They are usually telling us that there is something from our past that needs understanding or resolving. You will normally find that the issue is something that is also prominent in your life now.
If you dream about a house you lived in as a child, for instance, ask yourself what was happening in your life at the time you lived there.
- Did your parents separate?
- Did you change schools?
- Was it a particularly happy time?
- Ask yourself why your mind would want you to revisit that time again.
- Are there things issues from that time still holding you back?
- Did you make decisions based on events in the past that are no longer relevant or useful?
- Do you need to recapture a certain quality or feeling?
Prophetic and Psychic Dreams
There’s a strong myth stating that all of our dreams are foretelling the future, and this is simply not true.
That’s not to say that it doesn’t happen -- I've had quite a few myself. Dreams can occasionally give us information about future events, (which is where the myth comes from). However, unless we have highly developed psychic abilities, these are usually few and far between. This begs the question, “How do we know when our dream is prophetic?” Unfortunately, the answer to that is that you can’t know until the event you dreamt of takes place.
A lot of people have experienced dreams that involve ESP or what we might call psychic events. Again, these are quite rare -- most people might be lucky to have one or two of these in their lifetime. They include:
- Dreams of a deceased relative or friend (accompanied by feelings of joy, peace and love)
- Dreams of a deceased person we do not know
- A dream involving extra sensory perception (ESP) such as seeing an event in a dream that is taking place at the very moment you dream it
- Dreams of angels, spirit guides or religious figures
- Dreams of past lives
- Out of body experiences
- Astral travel
Those who have had these kinds of dreams report that they are exceptionally vivid and the feeling quality of the dream is different than in ordinary dreaming. The emotions are particularly intense and there is a sense of watching the scene as an observer rather than being involved in it.
While distressing, nightmares can tell us a great deal about ourselves. In particular: what we fear, what causes us the most emotional pain and what is holding us back in life. Nightmares are usually expressing deep feelings and thoughts that we are unconscious of. That's why they're so frightening -- because they are bringing to our attention emotions that were perceived to be threatening, devastating and/or overwhelming at some point in the past.
The occurrence of a nightmare is a sign that you're now ready to deal with these emotions and that you need to deal with them for the sake of your emotional, mental or spiritual health.
This statement may sound obvious, but it's surprising how many of us don't understand that our nightmare is telling us about something we are frightened of or anxious about. Take the time to discover its meaning, and you'll benefit in the long term.
Below are three common dreams that show examples of the kinds of questions you need to be asking yourself to enable you to accurately interpret your dreams
A Partner Being Unfaithful
Dreams of your partner cheating on you are most often an expression of your own anxiety and insecurity. Very rarely will they be your intuition alerting you about actual cheating -- rule out all other possibilities first:
- Are you scared your partner will leave you?
- Do you have low self esteem and/or confidence and wonder whether you deserve your partner?
- Have you or your partner cheated on each other or other partners before and you are worried this will happen again?
- Do you have problems with trusting people?
- Do you find it difficult to trust yourself?
- Are you attracted to someone else?
Dreams of Being Naked
What is your dream of being naked telling you? It will depend greatly on how you feel about it in your dream. Are you embarrassed? Ashamed? Free? Liberated? Vulnerable? Scared? Indignant? Exposed? Natural? Exhilarated?
If you experienced a negative emotion in relation to your nakedness, it could mean:
- You are feeling very vulnerable at the moment.
- You are scared of being exposed in some way.
- You have problems with your relationship with your body.
- You are hiding something you need to share.
If you experienced a positive emotion in relation to your nakedness, it could mean:
- You feel totally free.
- You feel liberated from a problem, setback or difficulty.
- You are at one with your physical nature.
- You enjoy your body.
- You are being completely honest about who you are, what you want or need.
Dreams Involving Animals
One way of interpreting animal symbols that I often use is to ask myself, "What special characteristics does this animal embody?"
- The eagle soars freely high above the earth. Therefore, the eagle has a broad perspective of what is below and will be able to "take in the whole picture." Do you already see the whole picture, or you do need to take a more objective view of something? Maybe you need to look at things from another perspective.
- The eagle is strong and powerful. Do you feel strong and powerful or does someone in your life embody these qualities?
- The eagle is a skillful hunter. Do you need to hunt something down or do you feel like someone is hunting you down?
- Are you feeling stung by something that happened recently or by something someone said?
- Bee is a homophone of "Be." Is your dream of bees telling you to just "be" yourself?
- Think about what is special about bees. Bees are very busy, productive and industrious creatures. They work cooperatively for their survival. They swarm together for protection and to attack. They are hive creatures - the group is more important and powerful than the individual. They produce a nourishing food (honey). Do one of these things prick your intuition about what the bees mean to you?