Learn why this royalty company believes it is the best way to play commodities and inflation. on 06/22/2021. Learn More

Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Firm Lands Its Largest-Ever Solar Energy Project in Metro New York City
Research Report

Share on Stocktwits


UGE International's newest self-financed project and its backlog are discussed in a PI Financial report.

In a June 9 research note, PI Financial analyst Devin Schilling reported that UGE International Ltd. (UGE:TSX.V; UGEIF:OTCQB) is rapidly gaining momentum in growing its community and commercial solar solutions backlog.

"We continue to view UGE as being well on its way to building out a long-term (high margin) recurring revenue stream through the Company's transition into a solar asset owner/operator," Schilling commented.

The latest addition to UGE's backlog, its largest solar project to date in the New York metro region, is a 1.6 megawatt (1.6 MW) rooftop system in New York that the energy company will develop, build, own and operate, Schilling noted. The financial aspects of the agreement were not disclosed, but based on a previous similar undertaking, PI Financial estimated this project could generate US$0.3–$0.4 million (US$0.3–0.4M) annually once the system is up and running, expected in mid-2022.

Schilling highlighted that once that happens, UGE's "self-financed projects are anticipated to generate recurring revenue over the entire project life (+25 years)" at independent-power-producer-level (IPP) margins, which are about 70% for larger IPPs.

This newest project in New York continues UGE's success with quickly lining up projects. Last quarter, the company's backlog encompassed 41 self-financed solar solutions, totaling about 71 MW, or $130 million in value. To date, the New York–headquartered firm has completed three such projects.

"We anticipate the bulk of this backlog being built out in [fiscal years 2022 and 2023]," Schilling wrote.

PI Financial has a Buy rating on UGE.

"With a turnaround largely complete and a strategic shift entering into the owner/operator business model behind them, we believe UGE is well positioned to benefit from the rapidly growing solar market in the years to come," Schilling concluded.

PI Financial has a CA$4.50 per share target price on UGE's stock, which is now trading around CA$1.36 per share.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: UGE International. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of UGE International, a company mentioned in this article.

Disclosures from PI Financial, UGE International, First Look, June 9, 2021

I, Devin Schilling, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.

Research Disclosures for UGE International:

3) PI Financial Corp. and/or its affiliates have received compensation for investment banking services for the subject company over the preceding 12-month period.

4) PI Financial Corp. and/or its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company.

Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is amongst other factors determined by revenue generated directly or indirectly from various departments including Investment Banking. Evaluation is largely on an activity-based system that includes some of the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance, and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.

Want to read more about Alternative - Solar and Alternative Energy investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe