Hannon Armstrong Sustainable Infrastructure Capital Inc (HASI, Financial) has recently seen a notable uptick in its stock performance, with a 4.72% gain over the past week and an impressive 12.35% increase over the last three months. Currently, the company boasts a market capitalization of $3.2 billion. According to GuruFocus's valuation metrics, HASI is significantly undervalued, with a GF Value of $45.47, compared to its current trading price of $28.17. This marks a shift from being modestly undervalued three months ago, suggesting a potential investment opportunity.
Overview of Hannon Armstrong Sustainable Infrastructure Capital Inc
Hannon Armstrong Sustainable Infrastructure Capital Inc, operating within the REITs industry, focuses on providing both debt and equity financing for energy-efficiency and renewable-energy projects across the United States. The company's investment portfolio includes projects that enhance energy efficiency through upgraded building components and renewable energy projects like solar and wind power generation. This strategic focus not only supports sustainability but also taps into the growing demand for green energy solutions. 
Assessing Profitability
HASI's Profitability Rank stands at 6/10, indicating a moderate level of profitability within its sector. The company's Return on Equity (ROE) is 7.97%, which is higher than 70.4% of 794 companies in the same sector. Additionally, its Return on Assets (ROA) at 2.68% is better than 54.07% of 799 companies. Remarkably, HASI has maintained profitability for the past decade, surpassing 99.88% of 850 companies in its industry. This consistent profitability underscores the company's robust financial health and operational efficiency. 
Growth Prospects
HASI's Growth Rank is a perfect 10/10, reflecting its excellent growth prospects. The company has shown a strong growth in revenue and EPS over the past 3 to 5 years. Specifically, its 3-Year Revenue Growth Rate per Share is 11.30%, and its 5-Year Revenue Growth Rate per Share is 6.00%. Future estimates are even more promising, with a Total Revenue Growth Rate (Future 3Y To 5Y Est) of 17.15%. These figures not only demonstrate HASI's growth but also its potential to expand further in the coming years. 
Key Shareholders
Notable investors in HASI include Steven Cohen (Trades, Portfolio), holding 227,357 shares, representing 0.2% of total shares, and Ray Dalio (Trades, Portfolio), who owns 20,276 shares, accounting for 0.02% of the total shares. The involvement of these prominent investors can be seen as a vote of confidence in HASI's market strategy and future prospects.
Competitive Landscape
In comparison to its competitors, HASI holds a strong market position. Outfront Media Inc (OUT, Financial) with a market cap of $2.48 billion, Uniti Group Inc (UNIT, Financial) valued at $893.758 million, and EPR Properties (EPR, Financial) close at $3.12 billion, HASI competes favorably in terms of market capitalization and industry focus. This competitive edge is crucial in maintaining its leadership in the renewable energy financing sector.
Conclusion
Hannon Armstrong Sustainable Infrastructure Capital Inc demonstrates a robust financial health and a promising growth trajectory. The company's current undervaluation, as indicated by its GF Value, combined with its strong profitability and growth metrics, presents a compelling case for potential investors. With its strategic focus on renewable energy and energy efficiency projects, HASI is well-positioned to capitalize on the increasing demand for sustainable investment solutions, making it a noteworthy contender in the REIT sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
