Altus Power, Inc. (AMPS) | Investment Case

1. Company Snapshot

1.a. Company Description

Altus Power, Inc.operates as a clean electrification company in the United States.It is involved in the on-site solar generation for commercial, industrial, and public customers; community solar; energy storage; and electric vehicle charging businesses.

The company was founded in 2009 and is based in Stamford, Connecticut.

Show Full description

1.b. Last Insights on AMPS

Here is a 90-word analysis of the positive drivers behind Altus Power, Inc.'s recent stock performance: Altus Power, Inc.'s recent performance was driven by the announcement of a proposed buyout offer of $5.00 per share by investment firm TPG, sparking multiple law firms to investigate the fairness of the deal on behalf of shareholders. This development has created a sense of optimism around the company's future, as investors await the outcome of these investigations. The potential acquisition has also highlighted the company's value, which may have been previously undervalued.

1.c. Company Highlights

Last Price	4.99
Change Percentage	-0.20%
Open	4.99
Previous Close	5
Market Cap ( Millions)	801
Volume	5228984
Year High	5.5
Year Low	2.71
M A 50	4.91
M A 200	3.97

FCF Yield	-13.60%
Dividend Yield	0.00%
ROE	-1.20%
Debt / Equity	70.43%
Net Debt / EBIDTA	1117.33%
Price To Book	1.47
Price Earnings Ratio	-129.06
Price To FCF	-7.35
Price To sales	5.14
EV / EBITDA	43.37

2. Transcript Summary

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3. NewsRoom

Altus Power Expands Florida Footprint with Acquisition of Three Operating Projects from Origis Energy

Oct -07

Source: businesswire.com

Altus Power Acquires 47.8 MW Portfolio from Tortoise Capital Advisors, Expanding Market Leading Footprint in New York

May -28

Source: businesswire.com

Altus Power Closes Transaction with TPG

Apr -16

Source: businesswire.com

Altus Power Stockholders Approve Agreement to be Acquired by TPG

Apr -09

Source: businesswire.com

Altus Power Acquires Ten Maryland Community Solar Projects, Totaling 58.4 MW, from Prospect14

Apr -08

Source: businesswire.com

Is Altus Power's $5 Per Share Sale Price Fair? Johnson Fistel Investigates Deal Terms

Apr -08

Source: globenewswire.com

Is Altus Power's $5 Per Share Sale Price Fair? Johnson Fistel Investigates Deal Terms

Apr -03

Source: businesswire.com

Is Altus Power's $5 Per Share Sale Price Fair? Johnson Fistel Investigates Deal Terms

Mar -31

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.54%)

6. Segments

Power Sales under Power Purchase Agreements

Expected Growth: 11.88%

The 11.88% growth in Power Sales under Power Purchase Agreements from Altus Power, Inc. is driven by increasing demand for renewable energy, expansion into new markets, and strategic partnerships. Additionally, declining solar panel costs, government incentives, and rising corporate investments in clean energy solutions contribute to this growth.

Solar Renewable Energy Credit

Expected Growth: 10.98%

Altus Power's Solar Renewable Energy Credit growth is driven by increasing demand for clean energy, favorable government policies and incentives, declining solar panel costs, and strategic partnerships. Additionally, the company's expanding project pipeline, strong operational efficiency, and growing customer base contribute to its 10.98% growth.

Power Sales under Net Metering Credit Agreements

Expected Growth: 12.08%

The 12.08% growth in Power Sales under Net Metering Credit Agreements from Altus Power, Inc. is driven by increasing adoption of renewable energy, declining solar panel costs, and favorable government policies. Additionally, Altus Power's expanding project portfolio, strategic partnerships, and efficient operations contribute to the growth.

Performance based Incentives

Expected Growth: 10.02%

Altus Power, Inc.'s 10.02% growth is driven by increasing adoption of renewable energy sources, rising demand for clean power, and strategic partnerships. The company's performance-based incentives are tied to project development, construction, and operation milestones, aligning employee interests with business objectives. This structure motivates teams to deliver high-quality projects, driving revenue growth and profitability.

Revenue recognized on contract liabilities

Expected Growth: 12.1%

The 12.1% growth in revenue recognized on contract liabilities from Altus Power, Inc. is driven by increasing adoption of renewable energy solutions, expansion of existing contracts, and strategic partnerships. Additionally, favorable regulatory policies and declining technology costs have contributed to the growth, enabling Altus Power to capitalize on the rising demand for clean energy.

Rental

Expected Growth: 11.47%

Rental growth of 11.47% driven by increasing adoption of renewable energy, rising demand for clean power, and Altus Power's expanding portfolio of solar assets. Additionally, favorable government policies and incentives, such as tax credits and net metering laws, support the growth of the rental segment.

Power Sales on Wholesale Markets

Expected Growth: 7.43%

Altus Power's 7.43% growth in Power Sales on Wholesale Markets is driven by increasing demand for renewable energy, strategic partnerships, and expansion into new markets. Additionally, the company's focus on providing clean energy solutions, improving operational efficiency, and optimizing pricing strategies have contributed to this growth.

7. Detailed Products

Solar Energy Systems

Altus Power designs, installs, and maintains solar energy systems for commercial and industrial customers, providing clean and renewable energy solutions.

Energy Storage Systems

Altus Power offers energy storage systems that enable customers to store excess energy generated by their solar panels or the grid, and use it when needed.

Electric Vehicle Charging Infrastructure

Altus Power designs and installs electric vehicle charging infrastructure for commercial and industrial customers, supporting the transition to electric transportation.

Energy Efficiency Solutions

Altus Power provides energy efficiency solutions, including LED lighting and HVAC upgrades, to help customers reduce energy consumption and costs.

Operations and Maintenance Services

Altus Power offers operations and maintenance services to ensure optimal performance and extend the lifespan of customers' renewable energy systems.

8. Altus Power, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Altus Power, Inc. faces moderate threat from substitutes due to the availability of alternative energy sources and storage solutions.

Bargaining Power Of Customers

Altus Power, Inc. has a diversified customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Altus Power, Inc. relies on a few key suppliers for its solar panels and energy storage systems, giving them moderate bargaining power.

Threat Of New Entrants

The renewable energy industry is rapidly growing, and new entrants are emerging, posing a significant threat to Altus Power, Inc.'s market share.

Intensity Of Rivalry

The renewable energy industry is highly competitive, with many established players and new entrants, leading to intense rivalry among companies like Altus Power, Inc.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	73.02%
Debt Cost	3.95%
Equity Weight	26.98%
Equity Cost	8.83%
WACC	5.26%
Leverage	270.61%

11. Quality Control: Altus Power, Inc. passed 0 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Cadiz

A-Score: 4.5/10

Value: 6.0

Growth: 6.8

Quality: 3.5

Yield: 0.0

Momentum: 8.5

Volatility: 2.3

1-Year Total Return ->

Altus Power

A-Score: 4.4/10

Value: 4.1

Growth: 7.0

Quality: 4.0

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

Energy Vault Holdings

A-Score: 4.4/10

Value: 6.2

Growth: 6.2

Quality: 3.6

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

Excelerate Energy

A-Score: 4.3/10

Value: 2.9

Growth: 4.3

Quality: 5.9

Yield: 1.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

Fluence Energy

A-Score: 3.4/10

Value: 7.6

Growth: 7.2

Quality: 3.1

Yield: 0.0

Momentum: 2.0

Volatility: 0.7

1-Year Total Return ->

Montauk Renewables

A-Score: 2.7/10

Value: 5.7

Growth: 5.2

Quality: 4.3

Yield: 0.0

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

16.52%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.26%

Altus Power, Inc. - US02217A1025

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AMPS

1.c. Company Highlights

More Volatile

Lower Yield

Lower Quality

Revenues Miss

Earnings Beats

Weak Momentum

Revenues Beats

Earnings Miss

Fairly Valued

Stable Momentum

Higher Growth

Expensive

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.54%)

6. Segments

Power Sales under Power Purchase Agreements

Expected Growth: 11.88%

Solar Renewable Energy Credit

Expected Growth: 10.98%

Power Sales under Net Metering Credit Agreements

Expected Growth: 12.08%

Performance based Incentives

Expected Growth: 10.02%

Revenue recognized on contract liabilities

Expected Growth: 12.1%

Rental

Expected Growth: 11.47%

Power Sales on Wholesale Markets

Expected Growth: 7.43%

7. Detailed Products

Solar Energy Systems

Energy Storage Systems

Electric Vehicle Charging Infrastructure

Energy Efficiency Solutions

Operations and Maintenance Services

8. Altus Power, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Altus Power, Inc. passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.99$

Current Price

4.99$

Potential

-0.00%

12.e Scoring ^Insights

12.f DCF ^BETA