JinkoSolar Holding Co Ltd (JKS, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $1.81 billion. The current price of JKS shares is $35.19, reflecting a 5.68% gain over the past week and an impressive 36.52% gain over the past three months. Despite these gains, the GF Value of JKS is set at $105.15, which is slightly above the past GF Value of $104.95. However, the current and past GF Valuation both suggest that the stock may be a Possible Value Trap, advising investors to Think Twice before making an investment decision.
Introduction to JinkoSolar Holding Co Ltd
JinkoSolar Holding Co Ltd, operating within the semiconductors industry, is a key player in the photovoltaic sector. The company boasts a comprehensive solar power product value chain, extending from silicon wafers to solar modules, and is recognized for its JinkoSolar brand. With a diverse geographical presence, JinkoSolar's operations span China, North America, Europe, and the Asia Pacific, excluding China, Hong Kong, and Taiwan. The company's product portfolio includes Silicon wafers, Solar cells, and Solar modules, catering to a global market.
Assessing JinkoSolar's Profitability
JinkoSolar's Profitability Rank stands at a robust 7/10, indicating a strong position within the industry. The company's Operating Margin is 6.74%, surpassing 53.65% of 958 companies in the same sector. Additionally, JKS's ROE (Return on Equity) is an impressive 22.84%, better than 89.53% of its peers. The ROA (Return on Assets) at 3.46% and ROIC (Return on Invested Capital) at 7.40% also demonstrate JinkoSolar's ability to generate cash flow relative to the capital invested. Remarkably, the company has maintained profitability for the past 10 years, a feat better than 99.89% of 895 companies in the industry.
Exploring JinkoSolar's Growth Trajectory
The Growth Rank for JinkoSolar is an exceptional 9/10, reflecting the company's strong revenue and profitability expansion. The 3-Year Revenue Growth Rate per Share stands at 33.40%, outperforming 86.43% of 877 companies. Over a 5-year period, the Revenue Growth Rate per Share is 13.30%, surpassing 66.62% of 773 companies. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 19.95%, which is more favorable than 87.5% of 144 companies. However, the 3-Year EPS without NRI Growth Rate shows a decline of -43.20%, and the 5-Year EPS without NRI Growth Rate also decreased by -10.30%. These figures suggest that while JinkoSolar's revenue is growing, earnings per share have faced challenges.
Key Shareholders in JinkoSolar
Notable investors in JinkoSolar include Steven Cohen (Trades, Portfolio), holding 303,055 shares, representing a 0.59% stake in the company. Jim Simons (Trades, Portfolio) follows with 208,700 shares, accounting for a 0.4% share, and Sarah Ketterer (Trades, Portfolio) holds 205,219 shares, also amounting to a 0.4% stake. These significant shareholders reflect confidence in JinkoSolar's market position and future prospects.
Competitive Landscape
When compared to its competitors, JinkoSolar's market cap of $1.81 billion positions it closely with Sunnova Energy International Inc (NOVA, Financial) at $1.84 billion, and slightly ahead of Canadian Solar Inc (CSIQ, Financial) with a market cap of $1.63 billion. However, it trails behind Sunrun Inc (RUN, Financial), which boasts a market cap of $4.22 billion. This competitive analysis highlights JinkoSolar's standing within the renewable energy sector and its potential for growth relative to its peers.
Conclusion
In conclusion, JinkoSolar's recent stock performance, characterized by a 36.52% gain over the past three months, warrants attention from investors. Despite the GF Valuation suggesting caution, the company's strong Profitability Rank and promising Growth Rank indicate a solid foundation for future success. With significant shareholders maintaining their positions and a competitive stance in the market, JinkoSolar presents an interesting case for value investors seeking opportunities in the renewable energy industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
