Yingli Green Energy Hold. Co. Ltd. Falls Behind in Race for Solar Profits

Yingli Green Energy Hold. Co. Ltd. (NYSE: YGE  ) reported first-quarter 2014 earnings this morning and results were a bit of a mixed bag for the company. Revenue was up only 0.7% from a year ago and down 28.8% sequentially to $408.9 million. That overshadowed gross margin improving from 12.7% last quarter to 16.6% this quarter and led to a $55.0 million, or $0.35 per share, net loss. Shares were up 10% as of 11 a.m.

Management said it still expects to ship 4.0 GW to 4.2 GW of solar panels this year, an increase of 23.7% to 29.9% from a year ago. 400 MW to 600 MW of that will go to systems the company is building, primarily in China.

The problem Yingli Green Energy has long term is $2.44 billion of debt hanging over the company and no net income to pay off the debt. That makes buyers leery of the warranty provided and means the company has less capital to invest in the next generation of solar equipment.

Yingli is one of the biggest solar manufacturers in the world, but it isn't one of the strongest financially, so that will keep me out of the stock. There are simply better options for investors, particularly companies with larger downstream businesses, where the value is currently being added in solar.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2997154, ~/Articles/ArticleHandler.aspx, 9/4/2015 8:37:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 4:02 PM
YGE $0.75 Down +0.00 +0.00%
Yingli Green Energ… CAPS Rating: *