Hannon Armstrong Sustainable Infrastructure Capital Inc (HASI)HASI

Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI): A Comprehensive Overview

Company Profile:

History and Background:

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) is a leading investment manager specializing in infrastructure that is essential to environmental sustainability. Founded in 2006 by Jeffrey W. Schnadig, HASI has become a leader in the environmental infrastructure marketplace. The company is headquartered in Annapolis, Maryland, with offices in New York City, London, and Zurich.

Core Business Areas:

HASI focuses on investing in infrastructure projects that benefit the environment, including renewable energy projects, energy efficiency improvements, and sustainable water infrastructure. The company invests through three primary strategies:

• Public Investments: HASI offers a publicly traded stock (NYSE: HASI) and trades additional securities on OTCQX (HASIL and HASIZ).
• Private Investments: HASI manages private investment funds that invest in infrastructure projects.
• Tax-Advantaged Investments: HASI manages a variety of tax-advantaged investment funds that offer tax benefits to investors.

Leadership:

*** Jeffrey W. Schnadig** is the Chairman, President, and Chief Executive Officer of HASI. He has over 30 years of experience in the financial industry, including 19 years at Merrill Lynch. *** Douglas J. Weill** is the Executive Vice President and Chief Financial Officer of HASI. He has over 25 years of experience in the financial industry, including 10 years at PricewaterhouseCoopers.

Top Products and Market Share:

HASI offers a variety of products and services to investors, including:

• Publicly Traded Stock (NYSE: HASI): HASI's public stock offers investors a way to participate in the growth of the environmental infrastructure market.
• Private Investment Funds: HASI manages a variety of private investment funds that invest in infrastructure projects. These funds offer investors the potential for higher returns than public investments, but they are also less liquid.
• Tax-Advantaged Investments: HASI manages a variety of tax-advantaged investment funds that offer tax benefits to investors. These funds are typically available only to accredited investors.

Market Share:

HASI is a leading player in the environmental infrastructure market. The company has invested in over $7.5 billion of infrastructure projects, and it currently manages over $9.8 billion in assets.

Total Addressable Market:

The global market for environmental infrastructure is estimated to be over $10 trillion. The US market for environmental infrastructure is estimated to be over $2 trillion.

Financial Performance:

Revenue and Earnings: In 2022, HASI reported total revenue of $201.9 million, a 24.9% increase from 2021. The company's net income was $123.1 million, a 26.2% increase from 2021. The company's earnings per share (EPS) was $3.27, a 25.4% increase from 2021.

Profit Margins: HASI's gross profit margin was 52.9% in 2022, a slight increase from 2021. The company's operating margin was 26.3% in 2022, a slight decrease from 2021. The company's net margin was 17.1% in 2022, a slight increase from 2021.

Cash Flow and Balance Sheet: HASI had $104 million in operating cash flow in 2022, a 24.3% increase from 2021. The company had $1.3 billion in cash and equivalents at the end of 2022.

Dividends and Shareholder Returns:

HASI has paid dividends every year since it went public in 2008. The company's current dividend yield is 1.8%. HASI's total shareholder return over the past 10 years has been over 300%.

Growth Trajectory:

HASI has a strong track record of growth. The company's revenue has grown by an average of 25% per year over the past five years. The company's earnings have grown by an average of 20% per year over the past five years.

Future Growth Projections:

Analysts expect HASI's revenue to grow by an average of 20% per year over the next five years. Analysts expect the company's earnings to grow by an average of 15% per year over the next five years.

Market Dynamics:

The environmental infrastructure market is a growing market, driven by the need to address climate change and other environmental challenges. The market is expected to continue to grow in the coming years, driven by government policies, technological advancements, and increased investor demand.

Competitors:

HASI's main competitors include:

• Brookfield Infrastructure Partners L.P. (NYSE: BIP): BIP is a leading global infrastructure investor.
• Clearway Energy, Inc. (NYSE: CWEN): CWEN is a leading renewable energy company.
• NRG Energy, Inc. (NYSE: NRG): NRG is a leading energy company that is investing in renewable energy.

Potential Challenges and Opportunities:

Challenges: HASI faces a number of challenges, including:

• Competition: The environmental infrastructure market is becoming increasingly competitive.
• Regulation: The environmental infrastructure market is subject to a complex regulatory environment.
• Interest Rate Risk: HASI is exposed to interest rate risk, which could impact the company's future earnings.

Opportunities: HASI has a number of opportunities, including:

• Market Growth: The environmental infrastructure market is expected to continue to grow in the coming years.
• Technological Advancements: Technological advancements are creating new opportunities in the environmental infrastructure market.
• Increased Investor Demand: There is increasing investor demand for investments that support environmental sustainability.

**Recent Acquisitions