Post by
BCdude on Mar 13, 2021 2:35pm
Imagine
I was moved to do a few long-term, back-of-the-envelope calculations last night. Over the last year we've seen UGE accelerate its sales backlog tremedously, adding well over $100 million of new projects that will be brought online over the coming 24 months. We've also seen new markets opening up for the company: Maine, Maryland, with the company mentioning other New England states in its latest press release.
We know that UGE as more than a decade of experience operating in this industry, and that clients rate them highly since they often hire them for additional projects.
What would happent o UGE if it continues to add $100 million to $150 million of projects every year for the next five years? Please note, this assumes no growth, merely continuing with the same number of projects signed in 2020. This also assumes no growth in the value per watt of solar power, which as Sophic Capital noted recently will likely continue to trend higher.
If that happens, this would mean $500 million to $750 million in additional sales backlog being added in five years, with that transalting into $50 million to $75 million in high-margin recurring revenue EVERY YEAR. Think about that.
Now imagine what that would do to the current share price.
When you start looking at numbes like these -- coupled with the recent Sophic Capital and PI Financial analysis -- one can imagine UGE trading at somewhere between $10.00 and $20.00 per share (assuming the current share structure).
I predict some happy days ahead for UGE shareholders.