NEW YORK (TheStreet) -- Shares of SunEdison were gaining 1.6% to $26.11 on Thursday after the solar module maker announced it signed agreements to construct and install three new solar plants in Southern Utah. The three solar plants have a combined capacity of 262 MW. The company said it plans to start construction of the three solar plants in Utah in the fall, and commercial operations are expected to begin in 2016. Electric utility company PacifiCorp will buy the electricity from the three power plants through 20-year power purchase agreements. The price of the electricity will be "at the utility's avoided cost of electricity, which reflects the utility's costs to purchase or generate the power from other resources," according to SunEdison. "These solar power plants will create jobs and provide valuable tax revenue to the people of Utah - they are a testament to the contribution solar can make to our energy future," Executive Vice President North America Utility and Global Wind at SunEdison Paul Gaynor said in a statement. "We thank our local partners in Beaver and Iron County for hosting these projects and we look forward to continued development in the state." TheStreet Ratings team rates SUNEDISON INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate SUNEDISON INC (SUNE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: SUNE's revenue growth has slightly outpaced the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 10.8%. Growth in the company's revenue appears to have helped boost the earnings per share. Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.28% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year. SUNEDISON INC has improved earnings per share by 16.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUNEDISON INC reported poor results of -$4.42 versus -$2.39 in the prior year. This year, the market expects an improvement in earnings (-$1.49 versus -$4.42). The debt-to-equity ratio is very high at 30.91 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, SUNE has a quick ratio of 0.54, this demonstrates the lack of ability of the company to cover short-term liquidity needs. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SUNEDISON INC's return on equity significantly trails that of both the industry average and the S&P 500. You can view the full analysis from the report here: SUNE Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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