What's up guys? Today I want to talk
about Solar integrated roofing corp. This
is an otc stock with the ticker sirc.
The company will soon confirm its name
change to "Solar EV" this is the penny
stock that i've been covering on the
channel for more than a year ($sirc)
but I have not made a video about this
in way too long. SIRC has had some good
news in recent weeks and the stock has
been performing very well (#SIRC)
having rallied from just 12 cents up to
a 52 week high of 65 cents. I will try to
keep this video as short as possible but
squeeze in as much detail as possible
so I will look at the latest company
presentation for august 2022 the latest
earnings report and later (#OTCMARKET)
i will look at expectations for the next
earnings report
as well as recent news and the charts to
see if I can find you a good entry point.
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video. I want to point out that i'm not a
financial advisor and this is not
financial advice now let's get into it
if you're new to this company then check
out my other $SIRC videos on the channel
where I go into detail about the company
and the management team
but basically (OTC:SIRC stock)
Solar Integrated Roofing Corp is an
integrated single source solar power
roofing systems and EV charger
installation company
specializing in residential and
commercial properties nationally
over the past two years they have
expanded rapidly, (stockstowatch)
and they now have more than 10 brands as
part of the SIRC family ($SIRC stock)
across several different divisions of
the business when we look at the stock
over the past month we can see that it
has been on a huge rise this is not
surprising at all for a number of
reasons which I will look at later in
this video. (muln stock)
first of all there has been anticipation
recently about joe biden signing the new
climate health care and tax bill into
law as prior to this the bill allocates
more than 300 billion dollars to be
invested in energy climate reform. It's
the largest federal clean energy
investment in u.s history so naturally
enough this is huge it includes 60
billion for boosting renewable energy
infrastructure in manufacturing like
solar panels and wind turbines and
includes tax credits for electric
vehicles and measures to make homes more
energy efficient so this is going to
have a huge effect on the renewable
energy industry and there will be a lot
of companies looking to get a slice of
this now let's look at the company's
latest investors presentation for august
so the company is positioning itself as
a one-stop shop offering alternative
energy solutions integrated solar
roofing backup and EV charging to
residential and commercial customers
with sustainable growth and a
complementary business line that
provides significant cross-selling
opportunities solar integrated roofing
corp has a strong mergers and
acquisitions focus but in the past six
months the company has also turned the
corner from losses into being a
profit-making company.
And we can clearly see the vertical
integration across the full customer
life cycle here from roofing and
electrical solar EV charging micro grids
and project financing.
there is an entire range of
complimentary offerings and
cross-selling opportunities for
combinations of the company's products.
On the next page of this presentation we
can see outlined some vital information
not only solar systems become one of the
most cost competitive energy services in
the market (#stockmarket)
but there is also strong demand and when
this is paired with federal and state
level incentives for clean energy this
creates a fantastic opportunity and we
can see that the total addressable
market is growing the serviceable
available market is growing but most
importantly the serviceable obtainable
market is growing massively and rapidly
this is vital as the company expands and
becomes more competitive more and more
opportunities will become available to
SIRC Solar and this is reflected here by the
scale of the revenue growth just look at
this 17 million in 2020 84 million in
2021 and an estimated 225 million
dollars for 2022 but we can see that
economies of scale have contributed to
solar EV improving its margins the more
they expand. I will look closer at these
figures in a moment (otc: sirc)
and there is one thing that concerns me
in the actual financials so stick around
for that. (#sirc)
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have called out huge runners in recent
weeks before they have made huge gains
such as tblt stock ($tblt stock)
at 1.74 that ran to over eight dollars or
vlcn stock which is up over 70 percent
in a couple of weeks (NASDAQ:VLCN)
and of course obviously sirc stock also.
now before we look at the financials
let's take a very quick look at the most
recent news after all this stock did
just go parabolic over the past few
weeks
first SIRC announced the introduction
of an innovative new solar financing
product to non-profit entities which is
funded through a jv with repm
and unlocks new commercial scale solar
opportunities for circ in a sector with
minimal competition
securing approvals to install solar
for eight non-profits
with the potential to install 100 more
in 2022 alone so that is huge but i
think a huge sign of how far this
company has come.
In the most recent news: SIRC is to
provide solar storage and EV charging
solutions to hard rock hotel properties
group. $SIRC partnered with associated
energy developers to assist with the
development and financing of energy
systems comprised of solar battery
storage and EV charging solutions from
multiple existing hard rock hotel
locations along with several planned
future hotels, (SIRC stock)
generating an estimated 55 million
dollars in sales for the initial
portfolio with an additional estimated
85 million in sales from a total of up
to an estimated 140 million in sales
over the next two to three years
dependent upon the construction
timelines of future hotels to be
constructed this is nearly 250 venues in
more than 70 countries this is really
going to put cirque on the map 140
million dollars in sales over the next
two to three years that's at least 50
million a year (#stockstobuy)
from just this one single contract
remember the presentation just a moment
ago this is the company that had total
revenue of just 17.3 million dollars
less than two years ago so now 50
million from one contract is huge they
made 17.3 million dollars of revenue in
all of 2020
yet in q1 2022 there was quarter over
quarter revenue growth of 682 percent
recording over 27 million dollars of
revenue and the next earnings report is
due to show more than 50 million for q2
which i'll talk more about in a moment
they turned a net loss into a net profit
while audited financial statements which
provides a level of legitimacy which is
sometimes not seen with otc pink sheet
companies
but what's incredibly important which i
have not mentioned in this video so far
is that cirque subsidiary
limco was awarded a five-year blanket
purchase agreement with the us general
services administration as part of the
five billion dollar in federal funds
allocated the biden administration's
infrastructure bill they also signed a
new pricing agreement with in-phase
energy as well as with a tier one global
solar panel supplier
so this is huge for anyone who doesn't
know in phase
is a 38 billion dollar company and a
major player in this industry and they
also secured a 45 million dollar
co-development agreement with lux power
now moving on to the financials looking
at the balance sheet first of all we can
see that circ had total current assets
of 71 million and total overall assets
of 171 million this is an increase of
about 10 over the previous quarter so
this is good liabilities have also risen
again about ten percent
but there's a ten percent of a much
smaller number so the company's
financial position has improved so let's
consider this this is an odc ping sheet
stock and all things considered this is
a very strong balance sheet for an otc
company total equity is 97 million
for a company with a market cap of only
212 million
and most importantly this company is
actually generating profits usually when
you have a company that is growing this
fast especially on the otc they don't
tend to be profitable but cirque solar
is actually improving its merchants
while expanding rapidly guys if you're
enjoying this video then all I ask is
that you smash that like button it
really does help more than you know
looking at the income statement we can
see that they achieved revenue for the
quarter of 26.9 million achieved a gross
profit of 11.2 million and a net profit
of 5.6 million so sirc urge you to
report their next financials very soon
and this is where I think a couple of
risks could be
first of all they need to continue to
produce consistent margins
the gross profit ratio was around 41 in
q1 on 26 million dollars which is very
good and the net profit
was over 21
which is fantastic they will need to
achieve similar margins on 50 million
revenue in q2
and again on the yearly expected revenue
of 225 million this is very important
and will have a major impact on the
share price but secondly
and this is a much bigger risk a large
portion of the company's assets is made
up of goodwill
which is something that I hate to see
this could actually be written down at
any time and this would have a
detrimental effect on the stock if that
was to happen
the stockholder equity here is 97
million dollars removing this completely
would leave
equity of pretty much zero which is a
horrible prospect
but as we can see here goodwill is
attributed to several business
combinations so it is unlikely to be
written down to zero but investors do
need to be mindful of this
everything that sirc has been doing
recently has been very positive and the
effects of this are clear especially on
the share price over the past month when
we look at the charts we can see that
the stock had been dropping for several
months before ripping up again
from just 17 cents up to 60 cents in the
space of a few weeks the stock had
dropped to as low as 11 cents back in
june
but this has been a remarkable gain
recently and looking closer over the
past week we can see that the stock had
been moving down since monday but now
appears to once again be on the uptrend
over the past two days as we get closer
to what should be a very positive
earnings report
so guys what did you think of that drop
a comment and let me know what you think
and what you expect to see over the
coming weeks do you agree or disagree
with anything that I have said these
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a financial advisor and this is not
financial advice remember to check out
my twitter at politi investing and i'll
see you in the next update video
you