SUNE
SunEdison Inc.
Energy, Event Driven/Special Sit
04/08/2014
Presented
| Date | 04/03/2014 |
| Price | $18.93 |
| Market Cap | $5.06B |
| Ent Value | $8.17B |
| P/E Ratio | N/A |
| Book Value | $0.86 |
| Div Yield | N/A |
| Shares O/S | 267.15M |
| Ave Daily Vol | 12,410,000 |
| Short Int | 18.32% |
Current
| Price | $0.34 |
| Market Cap | $0.11B |
| SunEdison, Inc. develops, manufactures, and sells silicon wafers to the semiconductor industry. The company operates through two segments, Solar Energy and Semiconductor Materials. The Solar Energy segment provides solar energy services that integrate the design, installation, financing, monitoring, operations, and maintenance portions of the downstream solar market. It also manufactures polysilicon, silicon wafers, and solar modules. As of December 31, 2013, this segment had interconnected approximately 816 solar power systems representing 1.3 gigawatts of solar energy generating capacity. The Semiconductor Materials segment offers prime wafers, including OPTIA wafers; epitaxial wafers, such as AEGIS wafers that consists of a thin silicon layer grown on the polished surface of the wafer; test/monitor wafers for testing semiconductor fabrication lines and processes; and silicon-on-insulator wafers for use in the chip making process. Its wafers are used as starting materials for the manufacture of various types of semiconductor devices, including microprocessor, memory, logic, and power devices. SunEdison, Inc. serves semiconductor device manufacturers, including the memory, microprocessor, and ASIC manufacturers; foundries; national retail chains and real estate property management firms; federal, state, and municipal governments; and utilities. It markets its semiconductor wafer products primarily through a direct sales force, as well as through local or regional solar channel partners. The company was formerly known as MEMC Electronic Materials, Inc. and changed its name to SunEdison, Inc. in May 2013. SunEdison, Inc. was founded in 1984 and is headquartered in St. Peters, Missouri. |
Highlights
The presenter argues that with the cost of capital coming down across the solar industry, it makes increasingly more sense to retain projects as opposed to selling them at some gross margin. By seeking to further lower its cost of capital via the creation of a yieldco, SunEdison appears well-positioned to gain first mover advantage in the solar space, not unlike the scale advantage gained over time by players employing a similar strategy in the REIT and MLP industries. The presenter believes that the yieldco structure could provide SUNE with a sustainable cost of capital arbitrage of as much as 100-200 bps over its competitors.
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