SinglePoint Inc. (CBOE: SING) assets continue to earn significant deal and revenue-generating traction. And that could be potentially excellent news for SING investors, especially those capitalizing on the valuation disconnect between operating performance and the SING share. But know this- while the investment thesis is strong, acting on it sooner rather than later may be wise, especially with the potential for this gap to close quickly, an assessment supported by tangibles showing SING assets, including Boston Solar, Frontline Power Solutions, and Box Pure Air, continuing to earn revenue-generating traction from prestigious brands and, most recently, a federal government agency.
Two deals were announced so far in January. The latest was SING reporting that Boston Solar entered a groundbreaking agreement with a federal government entity to complete more than 100 sight assessments and start initial engineering and design in anticipation of installing rooftop partnership agreement solar systems for those properties. Before that, the company said Boston Solar inked a deal with one of the world's most powerful battery and energy companies, Energizer Solar (NYSE: ENR), serving as its first U.S. partner to expand its solar market presence.
Yes, that's the same Energizer company with the pink bunny, so the potential for Boston Solar, if it performs as expected, can be enormous from that relationship alone. Boston Solar also benefits reputation-wise from business relationships with the Boston Red Sox, which can further fuel its intent to penetrate regional and national markets more quickly. And the opportunities are more than just solar-based.
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Serving Multiple Markets Through Accretive Assets
SinglePoint's push into the clean air market through its owned subsidiary, Box Pure Air, is gaining momentum faster than expected. The benefits of its products were highlighted on ABC's Morning Blend broadcast last week. That asset, and others in its portfolio, have contributed to impressive revenue growth, with SING revenues exceeding $30 million in its trailing twelve months. And according to some sector analysts, expectations are for topline growth for competitively positioned companies to continue.
A recent report from Jefferies analyst Dushyant Ailani highlights the growing bullish bias. He sees value-based investment opportunities throughout the renewable energy sector, including in First Solar, Inc. (NASDAQ: FSLR), Enphase Energy, Inc. (NASDAQ: ENPH), and Sunrun Inc. (NASDAQ: RUN), which earned his bullish ratings and whose potentials contribute to his optimistic thesis. Other analysts are joining the bullish camp.
CIBC Capital Markets analyst Mark Jarvi believes 2024 could reverse the downward spiral in clean energy stocks since 2021, a sentiment supported by lower rates/yields, which he models could have a qualitative and quantitative benefit on the sector. Perhaps the better news for those wanting exposure to the space is that both analysts, among others, may be right, especially on the heels of the COP28 plan, which now has 197 countries pledging to contribute to tripling the world's use of clean power, with much of that intent in progress. That initiative can be more than good news for the world; it can also be for the companies able to provide precisely the products and services needed to reach the aggressive mandates within the plan. CBOE-listed SinglePoint earns its way to and on that list.
More importantly, recognition can lead to SING exploiting a sweet spot of opportunity by leveraging its portfolio of renewable energy and energy-efficiency solutions and tapping into multiple near and long-term revenue-generating opportunities. In fact, supported by solid assets, the company is already turning ambition into progression.
SinglePoint Subsidiaries Are Actively Contributing
That includes value being accrued from the already-mentioned Boston Solar and from Frontline Power Solutions, two acquired assets contributing to SING's steepening growth trajectory. While those companies provide plenty of revenue-generating firepower, investors may be correct to expect more. In an update, SING management reiterated its commitment and intent to acquire additional assets to strengthen its competitive position as a scaled provider of efficient renewable and clean energy solutions. Progress on that front could shift SING's pace of growth from hyper to warp. Even without planned acquisitions, the company's growth trajectory is impressive.
Fiscal Q1/2023 revenues surged by 268%, reaching a record-setting $5.7 million. That growth was met with a gross profit of $1.65 million, a double-digit percentage increase on a comparative quarterly basis. Increases in year-over-year revenue are equally impressive, soaring by 40% to 24.7M in 2022 compared to the prior year. In other words, the case presented that recent weakness in SING's share price contradicts operating performance has plenty of supporting evidence, including that from its assets' intrinsic value and inherent potential. That's in whole or in part.
On its own, Boston Solar provides a fast track for SING to capitalize on regional business opportunities as a premier solar installation company in the New England area. Calling them premier is no exaggeration. Boston Solar has earned numerous accolades showcasing its achievements, including the 2020 Guildmaster Award from GuildQuality for outstanding customer service in the residential construction industry, being recognized by Solar Power World magazine for five years running as a Top Solar Contractor, and earning recognition on the Boston Business Journal's list of "Largest Clean Energy Companies in Massachusetts." Those recognitions likely gave the Boston Redsox the confidence they needed to partner with the company, leading to installing a solar system at the new MGM Music Hall at Fenway Park. There's more contributing to the SING value proposition.
Frontline Power Solutions Enhances National Reach
Its acquisition of Frontline Power Solutions expedites SING's mission to grow substantially larger in 2024. Operating in deregulated markets, Frontline Power Solutions is licensed in 12 states, providing Energy Supply Agreements to commercial, industrial, and institutional properties of all sizes. They also offer advisory services for clients wanting to reduce energy consumption, optimize energy portfolios, and explore cost-saving alternatives. Better still, this strategic acquisition provides SinglePoint access to an extensive client portfolio and gives Frontline a supportive pathway to capitalize on a $9 billion revenue-generating opportunity from the 26 U.S. states that offer deregulated power options. Additionally, with the combination allowing economies of scale, maximizing its monetization opportunities can and should happen more quickly and efficiently.
Here's the better news from an investor's perspective- Existing partnerships and expected acquisitions can significantly and positively impact growth, especially by helping facilitate and expedite SinglePoint's plan to expand its brand presence nationwide. Considering SING is already working to cure market fragmentation through roll-ups and consolidations that immediately scale up its operations, that result could come quickly.
Remember, groundwork completed over the past few years positions SING better than ever to target solar market sales across the U.S., forecasted to reach $223 billion by 2026. And with the Inflation Reduction Act extending tax credits, subsidies, and incentives for at least ten more years, earning just a small percentage of that opportunity can be worth tens, even hundreds, of millions in new revenues for SinglePoint-owned products and services. Here's another factor to include when appraising SING.
In addition to the more traditional solar market sales opportunities, SING is establishing itself as a front-runner in high-efficiency air purification technology by having scientifically validated air purifiers that meet the requirements set by the Department of Education (DOE). These purifiers utilize certified HEPA filters and adhere to the standards of the Food and Drug Administration (FDA) and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE). Like its others, this market also presents a massive opportunity: according to Market Insights, the air purifier market is already worth $2.3 billion, and with a forecast CAGR of 10.8%, the opportunity becomes a $2.9 billion one by 2025 and could soar to $4.8 billion by 2030.
Sum Of SING Parts Expose A Valuation Disconnect
Earning a potentially significant piece of that market opportunity won't accrue by coincidence. Instead, it would result from SING leveraging an impressive asset stable that allows them to do multiple things, making them a unique one-stop shop offering clients some of the best renewable and energy storage solutions in the market. That advantage can do more than create multiple revenue streams; it separates SING competitively by being one of the few offering renewable energy and storage solutions beyond traditional solar and energy storage, including providing cleaner air, energy-efficient appliances, and hygienic, safe buildings.
And those are just from SING's current assets. Based on recent comments, investors are right to expect more accretive value to be added to the SING portfolio this year. Thus, while the sum of SING's current parts exposes a value proposition today, the likelihood for that total to increase should be included in investment considerations.
Like all stocks, SING can get pushed around. However, with an asset portfolio that ideally positions SING to target a combined trillion-dollar market over the next decade, this company looks quite attractive, especially on a peer and sector multiples basis. In fact, with topline growth and a pathway in place to reach bottom-line profitability, more likely than not, SING looks well-armed to defend its value this year. Better still, add to it.
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