| China Sunergy Q4 2010 & Annual Earnings Analysis |
| Category: (China Sunergy - CSUN) |
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The company finished 2010 with revenue of $517.2 million an 81.6% increase over the prior year. Net income of $51.7 million and earnings per share of $1.25 are records for the company. The company’s share trade at 6.2 times 2012 consensus earnings estimates an 18.6% discount to peers. The short interest is well below the peer average in comparison to last quarter when it was above the peer average. The company acquired two entities during the fourth quarter of 2010 controlled by the company’s chairman of the board. Those two entities accounted for more than 50% of the company’s 2010 revenues. China remained the largest market for the company. Italy replaced Germany as the second largest market for the company. The company’s rankings improved in two categories and dropped in six categories. The company’s operating cash flow-to-net income ranking dropped to 20th from 8th, free cash flow-to-net income dropped to 10th from 2nd and cash conversion cycle ranking dropped to 25th from 18th. Many of the companies peers improved in those ranking while the company did not causing the significant rankings drops by the company. The company’s three year revenue cumulative average growth rate improved to 14th from 28th as the company continued to show strong revenue growth. Debt-to-equity dropped to 30th in the fourth quarter of 2010 due to the company’s significant increase in debt in the quarter while peers were working to reduce debt levels. Strong cash balances relative to debt provides the company with more financial flexibility and has the company ranked 13th among the peer group. | |
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