SunPower Inc. — Earnings Quality Grade F
SPWR · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 83 days, change -4 days YoY
AR growth 162.5% vs revenue growth 175.9%
Revenue 175.9%, CFFO 72.0%. Cash follows revenue
Expense Quality
Inventory -80.2% vs COGS 146.7%. Normal
Insufficient data
SG&A/Gross Profit = 120.8%, exceeds 70%
Gross margin swung +6.7pp (36.3% → 43.1%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -12.4%. Low accruals
Cash $0.0B covers only 5% of debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.1B = -126% of equity. Manageable
Interest coverage = -1.1x (<2x). Financial stress
Other assets 22.0% vs revenue 175.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles surged 216% YoY
Manipulation Score
M-Score = -1.23 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25