What's Driving Hannon Armstrong Sustainable Infrastructure Capital Inc's Surprising 60% Stock Rally?

Hannon Armstrong Sustainable Infrastructure Capital Inc (HASI, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $2.98 billion. The current price of HASI shares is $26.81, reflecting a 2.88% gain over the past week. More impressively, the stock has seen a significant 60.12% gain over the past three months. When compared to the GF Value of $27.73, HASI is currently considered fairly valued, a shift from its previous status three months ago when it was deemed significantly undervalued with a past GF Value of $31.5. This change in valuation suggests that the market is recognizing the company's potential and adjusting its expectations accordingly.

Introduction to Hannon Armstrong Sustainable Infrastructure Capital Inc

Hannon Armstrong Sustainable Infrastructure Capital Inc, operating within the REITs industry, is a specialized financier for energy-efficiency and renewable-energy projects across the United States. HASI's business model is centered on providing both debt and equity financing for projects that aim to reduce energy use and costs or generate power from cleaner energy sources such as solar and wind. The company's focus on sustainable and environmentally friendly projects positions it well within the growing trend towards green infrastructure and energy solutions. 1745448944760057856.png

Analyzing HASI's Profitability

With a Profitability Rank of 5/10, HASI's profitability is average within its industry. The company's Return on Equity (ROE) stands at 2.21%, which is better than 40.45% of its industry peers. Similarly, its Return on Assets (ROA) is 0.76%, surpassing 38.15% of competitors. Over the past decade, HASI has maintained profitability for 9 years, indicating a consistent performance that is better than 76.15% of companies in the industry. These figures suggest that while HASI is not leading the industry in profitability, it holds a stable position with room for improvement. 1745448963001085952.png

Growth Prospects of HASI

The Growth Rank for HASI is 4/10, indicating a moderate growth trajectory. The company has experienced a 3-Year Revenue Growth Rate per Share of -7.70%, which, while negative, is still better than 16.88% of its industry counterparts. On a more positive note, the 5-Year Revenue Growth Rate per Share is 8.30%, outperforming 84.37% of the industry. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is a modest 0.88%. HASI's 3-Year EPS without NRI Growth Rate is a robust 14.10%, and its 5-Year EPS without NRI Growth Rate is 7.40%, both of which are better than the majority of the industry. The future EPS Growth Rate (3Y to 5Y Est) is projected at 12.00%, indicating potential for continued earnings expansion. 1745448980306784256.png

Notable Shareholders in HASI

Among HASI's notable shareholders, Steven Cohen (Trades, Portfolio) leads with 70,300 shares, representing a 0.06% share percentage. Following him is Ray Dalio (Trades, Portfolio), holding 20,925 shares, which equates to a 0.02% share percentage. Jefferies Group (Trades, Portfolio) also has a stake in HASI with 11,300 shares, accounting for a 0.01% share percentage. These investments by prominent figures and institutions reflect confidence in HASI's business model and future prospects.

Competitive Landscape

When compared to its competitors, HASI holds a competitive market cap of $2.98 billion. Outfront Media Inc (OUT, Financial) has a market cap of $2.33 billion, Uniti Group Inc (UNIT, Financial) is valued at $1.37 billion, and EPR Properties (EPR, Financial) stands at $3.6 billion. HASI's market performance and capitalization are indicative of its strong position within the REITs industry, especially considering its focus on sustainable infrastructure, which is increasingly relevant in today's market.

Conclusion

In summary, Hannon Armstrong Sustainable Infrastructure Capital Inc has demonstrated a remarkable stock performance with a 60.12% gain over the past three months, now being fairly valued according to the GF Value. The company's business model, which emphasizes financing for energy-efficient and renewable-energy projects, positions it well within the growing trend of sustainability. While HASI's profitability is average, its consistent performance and positive growth indicators, along with the backing of notable shareholders, suggest a stable and potentially lucrative future. In comparison to its competitors, HASI's market cap and performance reflect its solid standing in the industry, making it a company worth watching for value investors.

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.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.