Recent weakness in SinglePoint Inc. (CBOE: SING) shares may be doing more than presenting an opportunity worth seizing; it may be too good to ignore. In fact, a likely victim of profit-taking after the New Year, the value proposition has never looked better. And that sentiment is supported by tangibles showing SING continuing to earn revenue-generating traction from an asset portfolio, including fast-growing subsidiaries like Boston Solar, that are striking deals with some of the country's most prestigious brands.
Most recently, Boston Solar announced being chosen by Energizer Solar (NYSE: ENR) as its first U.S. partner to expand its solar market presence. Make no mistake- this is the Energizer company with the pink bunny, so the potential for Boston Solar can be enormous. More good news is that benefits for both can accrue quickly, knowing that Energizer has the capital and expertise to penetrate targeted markets, starting in Massachusetts and eventually the entire U.S.
By the way, Energizer Solar's solutions are already highly successful in Australia, Germany, and the U.K. Thus, choosing Boston Solar to help usher in Energizer Solar's renewable-based solutions to the North American market is both a vote of confidence and a value driver for parent-company, SinglePoint. At its core, the partnership is a fusion of Boston Solar's expertise in solar energy solutions with Energizer Solar's innovative energy storage technology that targets the growing demand for efficient and reliable home energy solutions. In other words, it's a win-win agreement.
Still, the Energizer Solar partnership is just one high-profile collaboration. Boston Solar is also a Proud Partner of the Boston Red Sox, helping establish and deliver solar energy needs and solutions in Fenway Park. That deal, and others, have contributed to impressive revenue growth, with SING revenues exceeding $30 million in its trailing twelve months. And expectations are for topline growth to continue.
Analysts Turn Bullish On Renewable Energy Stocks
In a bullish report from Jefferies analyst Dushyant Ailani, he sees value-based investment opportunities in the renewable energy sector, including in First Solar, Inc. (NASDAQ: FSLR), Enphase Energy, Inc. (NASDAQ: ENPH), and Sunrun Inc. (NASDAQ: RUN), which earned his bullish ratings and whose potentials contribute to his optimistic thesis. Other analysts are modeling for a sector rebound as well.
Mark Jarvi at CIBC Capital Markets believes 2024 could reverse the downward spiral in clean energy stocks since 2021, a sentiment supported by lower rates/yields, which he believes could have a qualitative and quantitative benefit on the sector. Perhaps the better news for those wanting exposure to the space is that both analysts, among others, may be right, especially on the heels of the COP28 plan, which now has 197 countries pledging to contribute to tripling the world's use of clean power, with much of that intent in progress. Indeed, that's more than good news for the world; it can also be for the companies able to provide precisely the types of products and services needed to reach the aggressive mandates within the plan. CBOE-listed SinglePoint makes that list.
And more important than being on it, SING can exploit a sweet spot of opportunity by leveraging its portfolio of renewable energy and energy-efficiency solutions and tapping into multiple near and long-term revenue-generating opportunities. In fact, turning ambition into progression with contributing assets, they already are.
SinglePoint Assets Expedite Market Penetration
That includes value being accrued from the already-mentioned Boston Solar and from Frontline Power Solutions, two acquired assets already contributing to SING's steepening growth trajectory. While those companies provide plenty of revenue-generating firepower, investors may be correct to expect more. In an update, SING management reiterated its commitment and intent to acquire additional assets to strengthen its competitive position as a scaled provider of efficient renewable and clean energy solutions. Progress on that front could shift SING's pace of growth from hyper to warp. Even without planned acquisitions, the company's growth trajectory is impressive.
Fiscal Q1/2023 revenues surged by 268%, reaching a record-setting $5.7 million. That growth was met with a gross profit of $1.65 million, a double-digit percentage increase on a comparative quarterly basis. Increases in year-over-year revenue are equally impressive, soaring by 40% to 24.7M in 2022 compared to the prior year. In other words, the case presented that recent weakness in SING's share price contradicts operating performance has plenty of supporting evidence, including from owned assets' intrinsic value and inherent potential.
Boston Solar alone provides a fast track for SING to capitalize on that asset's regional strength as a premier solar installation company in the New England area. Calling them premier is no exaggeration. Boston Solar has earned numerous accolades showcasing its achievements, including the 2020 Guildmaster Award from GuildQuality for outstanding customer service in the residential construction industry, being recognized by Solar Power World magazine for five years running as a Top Solar Contractor, and earning recognition on the Boston Business Journal's list of "Largest Clean Energy Companies in Massachusetts." Those recognitions likely gave the Boston Redsox the confidence they needed to partner with the company, leading to installing a solar system at the new MGM Music Hall at Fenway Park. There's more to appreciate.
Frontline Power Solutions Expands Business Presence
SING's acquisition of Frontline Power Solutions expedites the company's mission to grow significantly bigger in 2024. Operating in deregulated markets, Frontline Power Solutions is licensed in 12 states, providing Energy Supply Agreements to commercial, industrial, and institutional properties of all sizes. They also offer advisory services for clients wanting to reduce energy consumption, optimize energy portfolios, and explore cost-saving alternatives. Better still, this strategic acquisition provides SinglePoint access to an extensive client portfolio and gives Frontline a supportive pathway to capitalize on a $9 billion revenue-generating opportunity from the 26 U.S. states that offer deregulated power options. Additionally, with the combination allowing economies of scale, maximizing its monetization opportunities can and should happen more quickly and efficiently.
From an investor's perspective- here's the better news. Existing partnerships and expected acquisitions can significantly and positively impact growth, especially by helping facilitate and expedite SinglePoint's plan to expand its brand presence nationwide. Considering SING is actively working to cure market fragmentation through roll-ups and consolidations that immediately scale up its operations, that result could come quickly.
Better still, if the strategy stays on course, and there's little to indicate otherwise, SING should be better positioned than ever to target solar market sales across the U.S., forecasted to reach $223 billion by 2026. And with the Inflation Reduction Act extending tax credits, subsidies, and incentives for at least ten more years, earning just a small percentage of that opportunity can be worth tens, even hundreds, of millions in new revenues for SinglePoint-owned products and services. Here's another factor to include when appraising SING.
In addition to the more traditional solar market sales opportunities, SING is also establishing itself as a front-runner in high-efficiency air purification technology. In fact, they have already scientifically validated air purifiers that meet the requirements set by the Department of Education (DOE). These purifiers utilize certified HEPA filters and adhere to the standards of the Food and Drug Administration (FDA) and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE). Like its others, this market also presents a massive opportunity: according to Market Insights, the air purifier market is already worth $2.3 billion, and with a forecast CAGR of 10.8%, the opportunity becomes a $2.9 billion by 2025 and could soar to $4.8 billion by 2030.
A Value Proposition Supported By Performance
Combining the knowns with expectations, the sum of SING's parts already exposes a value proposition ripe for the taking. Considering more value drivers are expected to be added in 2024, taking that action sooner rather than later may be warranted. Admittedly, like all smallcaps, SING is a speculative play. However, with differences that are competitive advantages in a sector expected to be a combined trillion-dollar one over the next decade, SING doing the right things with the right assets at the right time matters. And they are, which can do more than drive near and long-term growth, it can create potentially enormous shareholder value.
That won't be by coincidence. Instead, it will result from SING's and its subsidiary's abilities to do multiple things, which presents clients with a unique one-stop shop to get some of the best renewable and energy storage solutions in the market. That should do more than create multiple revenue streams; it separates SING competitively by being one of the few offering renewable energy and storage solutions beyond traditional solar and energy storage, including providing cleaner air, energy-efficient appliances, and hygienic, safe buildings. Those, too, target multi-billion dollar potentials.
Yes, SinglePoint has many revenue-generating irons in the fire. But the more important thing to note is that they can manage them. That combination can do more than establish a path toward bottom-line profitability; it could lead to that outcome happening faster than many think.
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