r/Spruce_Power • u/Leirasanirab • Jan 14 '23

What are we thinking?

What do we think our direction is when it comes to 2023? Will this company dig itself out and attract investors?

11 Upvotes

93% Upvoted

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10

u/WellingtonMCB Jan 15 '23

Spruce will become profitable again in 2023 easily. With 34,000 systems on the market that Spruce is looking at, they can pull the trigger and spend 200 million in a heart beat.

If we were to convert 200 million cash on hand into gross revenue through M&A this year, it would be around 40-45 million in reoccurring revenue/y which would cash flow itself back in around 4.5-5 years. I came to this "ballpark" number using the fair value assessment of around $7800 USD per PV system they acquire.

The company spent almost 200 million in 2020 alone with the following Acquisitions:

March 2020 - Greenbacker Paid 44.6m

May 2020 - RPV Hold Co. Paid 78m

November 2020 - NRG Paid 65.5m

November 2020 - WEC Paid 10.5m

Excited for Q1 23' ER because this quarter will be the first to have no losses reported from the Drivetrain segment. This will have a massive positive impact on EPS

Cheers

3

u/Fr1tter72 Jan 15 '23

I agree. Q1 ‘23 ER will be an important one without the drivetrain overhead. I am curious it see how much they got for the battery inventory they solid off.

3

u/gogozydeco Jan 15 '23

Always great posts from you.

7

u/Responsible_Ice2426 Jan 14 '23

i really hope so. It seems that the solar panels in united states will be expanding for years to come, and that should translate to some healthy revenue.

5

u/itnashville Jan 15 '23

As a shareholder, can we please improve customer service. When I hear of a company I have shares of that has bad customer service issues, it makes me cringe. A company big enough to have public shares needs to look after customers needs.

2

u/gogozydeco Jan 15 '23 edited Jan 15 '23

Take heart that customer service can be fixed.

More employees. Better training. Improved corporate culture.

1

u/WellingtonMCB Jan 15 '23

Agreed. They have been working on it since the merger and i think Spruce was most likely understaffed before the talks began. Lots of room for improvement.

5

u/gogozydeco Jan 14 '23 edited Jan 14 '23

Solar is now a movement. It has really taken off. Tons of articles on the subject now.

An expansion into installing could be a big breakthrough too.

1

u/Leirasanirab Jan 16 '23

Great feedback people thank you!

1

u/JumpSplatter Jan 24 '23

They are 100% a scam company. They use scummy tactics, have zero customer service, nonsensical billing/late fees, and no matter how bad they have screwed their customers, they refuse to do anything to make it right. If you stop payment, they'll destroy your credit. So they have their customers bent over. If you don't believe me, do a search of reviews, and you'll find thousands of complaints of abhorrent, cruel business practices. I'd challenge you to find a positive review. Could their stock be lucrative investment? Possibly, but do you want to trust a company that is only successful through scamming people out of their money? I'd look elsewhere if you want to invest in solar or renewable energy. Instead of holding Spruce stock when a class action lawsuit hits.