As of June 30, 2019, the company had a debt-to-equity ratio of 1.29. As a result, Canadian Solar's ability to generate new revenues from new projects in China is hampered.Ī closer look at American Electric Power's balance sheet shows it's holding a lot of debt.
Proposed renewable energy projects will also need to demonstrate they will not overload the Chinese power grid. This, combined with the decline of the price per unit, hurts Canadian Solar's margins.Īt the beginning of 2019, the Chinese government announced that it wouldn't support any further large solar or wind farms until the prices of renewable energy fell in-line with electricity generated from coal. The feast or famine production cycle hurts their ability to retain their talent and increases costs of producing the next run. The decline was in part due to its sale of assets in the first quarter, but the pricing pressure remains a long term concern.Ĭanadian Solar has difficulties lining up enough work to keep their factories in steady production. There are three reasons why I would stay away from this stock.įirst, it's getting cheaper and cheaper to buy panels, and this is hurting Canadian Solar's revenue. Founded in 2001, Canadian Solar manufactures solar panels and generates and sells energy from solar projects throughout the world.
0 kommentar(er)
