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Analysis of Smart Powerr Corp. (NASDAQ:CREG) and Its Financial Performance
Smart Powerr Smart Powerr (US:CREG) Financial Modeling Prep·2025-09-11 15:00

Core Viewpoint - Smart Powerr Corp. is struggling to generate sufficient returns to cover its cost of capital, indicating a challenging financial position in the renewable energy sector [1][2][5]. Financial Performance - Smart Powerr Corp. has a Return on Invested Capital (ROIC) of -2.22% and a Weighted Average Cost of Capital (WACC) of 9.31%, resulting in a ROIC to WACC ratio of -0.24, which shows that the company is spending more on its capital than it is earning from it [2][5]. - The negative ROIC to WACC ratio indicates that Smart Powerr Corp. is not in a sustainable financial position [2]. Peer Comparison - When compared to peers, China Jo-Jo Drugstores, Inc. (CJJD) has a ROIC to WACC ratio of -1.64, and Recon Technology, Ltd. (RCON) has a ratio of -0.93, both indicating they are also not covering their cost of capital [3]. - SemiLEDs Corporation (LEDS) has a significantly worse ROIC of -20.38% and a WACC of 6.87%, leading to a ROIC to WACC ratio of -2.96, highlighting the overall challenges faced by companies in the renewable energy sector [4]. Industry Challenges - Most companies in the renewable energy sector, including Smart Powerr Corp., are facing difficulties in generating returns above their cost of capital, indicating inefficiencies in capital utilization [4][5].