Stock Alert for Satcon Technology Corp. (SATC)
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    Stock Alert for SatCon Technology Corp. (SATC)

    Satcon Technology Corp. (SATC) is a clean energy technology provider of utility-grade power conversion solutions for the renewable energy market, primarily the large-scale commercial and utility-scale solar photovoltaic (PV) markets. The Company designs and delivers advanced power conversion solutions that enable large-scale producers of renewable energy to convert clean energy into grid-connected, efficient and reliable electrical power.  Its power conversion solutions boost total system power production through system intelligence, advanced command and control capabilities, industrial-grade engineering and total lifecycle performance optimization. SATC’s power conversion solutions feature the widest range of power ratings in the solar industry. The Company also offers system design services and solutions for management, monitoring, and performance measurement to maximize capital investment and improve overall quality and performance over the entire lifespan of an installation.

    Share Statistics (27-June-11) FY 

    2009

    FY 

    2010

    %  

    Chg

    Q1 

    2010

    Q1 

    2011

    %  

    Chg

    Symbol SATC Revenue, $Mn 52.54 173.30 229.8% 14.73 62.00 320.9%
    Current price $2.22 Gross marg. 6.1% 25.4% 316.4% 13.8% 24.0% 73.9%
    52wk Range: $1.90-$5.51 Oper. margin -4.1% -2.4%
    Avg Vol (3m): 2,811,190 Net margin -57.0% -6.8% -88.1% -37.8% -3.5% -90.7%
    Market Cap. 264.27M
    Shares Outstanding 119.04M EPS, $ -0.56 -0.25 -55.4% -0.10 -0.02 -80.0%

    Source: Reuters.com, SEC Filings.

    Recent News

    Shares of SATC rallied last week after the photovoltaic inverter maker said it has been selected by BIOSAR Energy SA for multiple utility-scale power plants across Italy, Greece and Bulgaria. SATC said the latest deal with BIOSAR, which is one of Europe’s leading photovoltaic solar energy development companies, will involve the deployment of thirty-two 625 kilowatt (kW) Equinox inverters, SATC’s utility-ready solution.

    SATC claims Equinox has a peak efficiency of 98.5% and the industry’s widest thermal operating range, enhancing system-wide energy harvest and solar plant yield – which offer the large-scale solar industry’s highest return on investment (ROI) and the industry’s lowest Levelized Cost of Energy.

    SATC president and CEO Steve Rhoades commented in the release: “The BIOSAR projects continue to demonstrate the strength of the Mediterranean solar market, and in particular, the significant growth in demand for utility-scale solutions. Together with SDL Solar, we have built a strong foundation to showcase our industry leading utility-ready solar solutions in the region. We are honored to be selected by BIOSAR and to be a part of these innovative utility-scale solar projects.”

    The Company on Wednesday announced that it has achieved the second largest share in the global utility-scale inverter market for 2010, citing a report by IMS Research.

    SATC gained $0.07 to close yesterday’s trading at $2.22 per share. Over 2.24 million shares have traded hands during the session, versus the 10-day average volume of 2.99 million.  The stock has been moving within a range of $1.90 – $5.51 over the past 52-weeks. The stock remains below its 50-day moving average of $2.44 and below its 200-day moving average $3.67. Market capitalization currently stands at $264.27 million and it has 119.04 million outstanding shares.

    Visit SATC at www.satcon.com

    Financial Summary

    SATC reported revenue of $62.0 million for the first quarter of 2011, an increase of 321% over the same period last year. The Company said North America continued to be its strongest performing region, representing 76% of total sales. Asia contributed 22% of sales, while Europe represented 2%. During the first quarter, SATC shipped 276.5 MWs of its industry-leading PowerGate Plus, Prism, and Solstice solutions. The Company’s utility scale solutions, of 250kW and above, continued to be the company’s strongest performing offering, shipping over 240 MW, and representing 87% of total units shipped in the quarter.

    The Company’s bookings for the first quarter of 2011 totaled $35.5 million, representing 132 MW of orders for SATC’s solutions, with 77% of that demand coming from North America, 20% from Asia Pacific and 3% from Europe.

    At March 31, 2011, the Company’s backlog, which consists of purchase orders from its customers, was $72.2 million. Backlog from North America represented 78.5% of orders to be delivered. Asia contributed 14.7%, while Europe contributed 6.8%.

    Financial Strength (27-June-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 0.97 2.72 1.28 0.71
    Current Ratio (MRQ) 1.63 3.26 1.59 1.04
    LT Debt to Equity (MRQ) 15.63 18.68 46.66 136.76
    Total Debt to Equity (MRQ) 79.27 33.13 67.68 182.31
    Interest Coverage (TTM) -0.78 0.09 18.08

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among 12 polled investment analysts. Against the Satcon Technology Corp company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 6 4 2 0 0 0
    4 weeks ago 6 4 2 0 0 0
    2 months ago 6 4 2 0 0 0
    3 months ago 6 5 1 0 0 0
    Last year 2 0 3 0 0 0

    The 12 analysts offering 12-month price targets for SATC have a median target of 5.00, with a high estimate of 10.00 and a low estimate of 3.00. The median estimate represents a 132.56% increase from the last price of 2.15.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Jun-11 12 55.98 61.60 52.70 32.25
    Quarter Ending Sep-11 12 70.04 83.80 60.50 36.30
    Year Ending Dec-11 12 273.69 293.80 257.20 150.85
    Year Ending Dec-12 11 375.36 454.80 338.60 305.02
    EARNINGS (per share)
    Quarter Ending Jun-11 12 -0.05 -0.05 -0.06 0.00
    Quarter Ending Sep-11 12 0.00 0.04 -0.02 0.01
    Year Ending Dec-11 12 -0.02 0.05 -0.06 0.10
    Year Ending Dec-12 11 0.26 0.42 0.05 0.38
    LT Growth Rate (%) 2 50.00 70.00 30.00

    Technical Analysis

    Source: http://stockcharts.com

    SATC is below its 20-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

    SATC is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

    SATC’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    June27-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    American Superconductor Corp. AMSC 8.49 430.45M 14.15 20.71 1.20 1.47
    Advanced Energy Industries Inc. AEIS 13.89 604.99M 8.17 7.85 2.00 0.94
    Power-One Inc. PWER 8.01 830.08M 7.93 6.85 0.74 0.65
    Semiconductor – Integrated Circuits Median 14.73 n/a 1.72 n/a
    SatCon Technology Corp. SATC 2.22 264.27M n/a 7.93 0.97 0.70

    Source: Thomson Financial

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