Tesla Motors Inc (NASDAQ:TSLA) Plus SolarCity Corp (NASDAQ:SCTY) = $100

Tesla Motors Inc (NASDAQ:TSLA) Plus SolarCity Corp (NASDAQ:SCTY) = $100

Tesla Motors Inc (NASDAQ:TSLA) Plus SolarCity Corp (NASDAQ:SCTY) = $100

Our Tesla price target is now below $100 over the next 12 months.

Solar City is a disastrous take over target for Tesla, Tesla itself has not been profitable and Solarcity losses money hand over fist, the combination will drag Telsa lower with debt, dilution and poor financial performance.

 

Not surprisingly Institutions have been dumping SolarCity lately

Institutional Holders

% Shares Owned: 49.41%
# of Holders: 301
Total Shares Held: 48,576,073
3 Mo. Net Change: -7,917,638
# New Positions: 41
# Closed Positions: 77
# Increased Positions: 134
# Reduced Positions: 149
# Net Buyers: -15

Here is how bad SolarCity looks

Consensus Estimates Analysis

# of Estimates Mean High Low 1 Year Ago
SALES (in millions)
Quarter Ending Jun-16 15 140.29 176.60 113.00 162.11
Quarter Ending Sep-16 15 167.50 204.69 146.00 197.09
Year Ending Dec-16 17 586.52 787.00 446.60 753.59
Year Ending Dec-17 15 840.63 1,061.00 639.00 1,272.48
Earnings (per share)
Quarter Ending Jun-16 16 -2.50 -1.89 -2.77 -1.58
Quarter Ending Sep-16 16 -2.35 -1.73 -2.89 -1.50
Year Ending Dec-16 15 -9.79 -7.73 -11.20 -6.78
Year Ending Dec-17 16 -9.65 -6.09 -12.61 -5.34
Sales and Profit Figures in US Dollar (USD);

Valuation Ratios

Company industry sector
P/E Ratio (TTM) 18.49 16.20
P/E High – Last 5 Yrs. 20.61 34.11
P/E Low – Last 5 Yrs. 12.10 10.66
Beta 2.07 1.54 1.03
Price to Sales (TTM) 4.58 1.66 20.14
Price to Book (MRQ) 2.35 2.50 1.62
Price to Tangible Book (MRQ) 5.53 3.37 3.41
Price to Cash Flow (TTM) 5.82 8.64
% Owned Institutions 49.41 0.56 0.43

Everywhere you look at SolarCity it is a financial horror story

Profitability Ratios

Company industry sector
Gross Margin (TTM) 24.30 28.37 25.14
Gross Margin – 5 Yr. Avg. 27.53 18.70 26.42
EBITD Margin (TTM) -120.84
EBITD – 5 Yr. Avg -94.12 1.87 16.21
Operating Margin (TTM) -161.77 12.47 5.08
Operating Margin – 5 Yr. Avg. -127.87 -9.96 -4.64
Pre-Tax Margin (TTM) -198.45 4.90 1.89
Pre-Tax Margin – 5 Yr. Avg. -152.38 -10.58 -0.83
Net Profit Margin (TTM) -199.02 3.80 -1.33
Net Profit Margin – 5 Yr. Avg. -147.60 -11.55 -5.66
Effective Tax Rate (TTM) 15.60 29.71
Effective Tax Rate – 5 Yr. Avg. 47.31 32.87

Efficiency

Company industry sector
Revenue/Employee (TTM) 29,772 1,262,161 3,263,048,920
Net Income/Employee (TTM) -59,254 55,994 70,803,576
Receivable Turnover (TTM) 13.71 7.38 9.67
Inventory Turnover (TTM) 1.29 3.77 11.81
Asset Turnover (TTM) 0.07 0.84 0.72

Tesla Motors Inc (NASDAQ:TSLA) has not been doing much better

Profitability Ratios

Company industry sector
Gross Margin (TTM) 21.53 20.55 24.83
Gross Margin – 5 Yr. Avg. 23.83 20.00 23.71
EBITD Margin (TTM) -8.48
EBITD – 5 Yr. Avg -8.14 13.28 14.48
Operating Margin (TTM) -20.28 6.64 8.12
Operating Margin – 5 Yr. Avg. -16.31 8.95 10.30
Pre-Tax Margin (TTM) -23.58 9.79 11.50
Pre-Tax Margin – 5 Yr. Avg. -19.05 12.85 13.34
Net Profit Margin (TTM) -23.91 7.66 9.10
Net Profit Margin – 5 Yr. Avg. -19.31 10.28 10.53
Effective Tax Rate (TTM) 21.69 23.87
Effective Tax Rate – 5 Yr. Avg. 20.48 22.37

Efficiency

Company industry sector
Revenue/Employee (TTM) 325,716 1,068,433,648 915,569,562
Net Income/Employee (TTM) -77,864 83,928,549 76,235,238
Receivable Turnover (TTM) 16.42 10.73 13.59
Inventory Turnover (TTM) 2.83 8.20 11.17
Asset Turnover (TTM) 0.56 0.73 0.74

Management Effectiveness

Company industry sector
Return on Assets (TTM) -13.28 5.61 5.63
Return on Assets – 5 Yr. Avg. -13.34 9.68 9.27
Return on Investment (TTM) -20.47 9.39 9.15
Return on Investment – 5 Yr. Avg. -20.42 16.39 15.20
Return on Equity (TTM) -113.20 12.73 12.20
Return on Equity – 5 Yr. Avg. -74.13 21.27 19.55
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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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