Altus Power Inc. (NYSE: AMPS) has recently undergone significant changes, including its acquisition by TPG. Below is a comprehensive stock analysis based on the latest available information.
1. Executive Summary
- Company: Altus Power Inc.
- Ticker: AMPS (formerly listed on NYSE)
- Industry: Renewable Energy – Commercial-Scale Solar Power
- Investment Recommendation: Not Applicable (Company is now privately held)
As of April 2025, Altus Power has been acquired by TPG and is no longer publicly traded. Therefore, traditional investment recommendations are not applicable.
2. Company Overview
- Business Model: Altus Power develops, owns, and operates commercial-scale solar generation, energy storage, and charging infrastructure across the U.S., serving commercial, industrial, public sector, and community solar customers.
- Industry Position: Prior to acquisition, Altus Power was a leading independent provider of clean electric power in the U.S., with a portfolio exceeding 1 GW of solar PV.
- Key Products/Services: Onsite solar solutions, community solar programs, energy storage systems, and EV charging infrastructure.
- Management: Gregg Felton served as CEO, leading the company’s strategic direction and growth initiatives.
3. Financial Analysis
- Revenue Growth: In FY2024, Altus Power reported revenue of $196.3 million, a 26.5% increase from $155.2 million in FY2023.
- Profitability: The company reported a net loss of $61.2 million in Q4 2024.
- Balance Sheet: As of the end of 2021, Altus Power had $326 million in unrestricted cash and $546 million in total debt.
- Cash Flow: Detailed cash flow information for FY2024 is not publicly available.
4. Stock Performance
- Historical Performance: Prior to the acquisition announcement, AMPS traded around $3.00. The stock surged to approximately $4.90 following the announcement.
- Acquisition Details: TPG acquired Altus Power for $5.00 per share in an all-cash transaction valued at approximately $2.2 billion, including outstanding debt.
- Current Status: As of April 2025, Altus Power is a privately held company and no longer trades on public stock exchanges.
5. Valuation Analysis
Given the company’s transition to private ownership, traditional valuation metrics such as P/E, P/S, and P/B ratios are no longer applicable. Prior to acquisition, the buyout price of $5.00 per share represented a 66% premium over the unaffected closing price.
6. Industry & Market Analysis
- Industry Trends: The renewable energy sector, particularly commercial-scale solar, continues to experience growth driven by sustainability goals and regulatory support.
- Market Share: Altus Power was among the largest owners of commercial-scale solar assets in the U.S.
- Macroeconomic Factors: Factors such as interest rates, government incentives, and technological advancements influence the renewable energy market.
7. Risk Analysis
- Market Risk: The renewable energy sector is subject to policy changes and market competition.
- Financial Risk: Prior to acquisition, Altus Power had significant debt levels, which could pose risks if not managed effectively.
- Regulatory Risk: Changes in energy policies and incentives can impact project viability and profitability.
- Geopolitical Risk: Global supply chain disruptions and trade policies can affect equipment availability and costs.
8. Growth Catalysts
- New Projects: In early 2025, Altus Power acquired ten development-stage community solar projects in Maryland, totaling 58.4 MW.
- Strategic Partnerships: The acquisition by TPG is expected to provide Altus Power with additional resources to accelerate growth and expand its clean energy offerings.
9. Analyst Sentiment
Prior to the acquisition, analysts had mixed opinions on AMPS, with several downgrading the stock to “Neutral” following the buyout announcement. The $5.00 per share acquisition price was generally viewed as fair, representing a significant premium over the pre-announcement trading price.
10. Conclusion
Altus Power’s acquisition by TPG marks a significant transition, providing the company with enhanced resources to pursue its mission of delivering clean electric power. While the company’s stock is no longer publicly traded, its continued operations in the renewable energy sector under private ownership will be of interest to industry observers and stakeholders.
11. Appendix
Recent News Articles:
- Altus Power Becomes Privately-Held Company as TPG Closes $2.2 Billion Deal
- Altus Power Announces Fourth Quarter and Full Year 2024 Financial Results
- Altus Power Acquires Ten Maryland Community Solar Projects