SMA Solar Technology (S92) AI Stock Analysis

• Market Cap: €657.22M
• Dividend Yield: 2.64%
• Average Volume (3M): 196.81K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 2.27
• Revenue Growth: -22.76%
• EPS Growth: -222.81%
• Country: DE
• Employees: 4,097
• Sector: Technology
• Sector Strength: 82
• Industry: Solar
• EPS (TTM): -1.38
• Shares Outstanding: 34,700,000
• 10 Day Avg. Volume: 274,559
• 30 Day Avg. Volume: 196,814
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €18.00
• Price Target Upside: -4.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 40 Neutral
• Price Target: €18.00 ▼(-4.96% Downside)

SMA Solar Technology's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's declining revenue, profitability, and cash flow, combined with negative valuation metrics, pose significant risks. The technical analysis further supports a bearish outlook, with the stock trading below key moving averages and indicators suggesting oversold conditions.

Positive Factors

Regulatory Environment

The leaked US Treasury guidance proved less restrictive than many had anticipated, reducing regulatory uncertainty for large-scale projects.

Regulatory Guidance

The stock found some relief on a better than expected US Treasury guidance outcome.

Negative Factors

Earnings

SMA Solar's preliminary Q2 figures came in materially below consensus expectations with EBITDA of €-15.5m (vs Co. cons. €-4m) and EBIT of €-€30.4m (€-19m).

Market Demand

Subdued demand and overcapacity in residential and commercial and industrial sectors is weighing on the outlook.

Restructuring Efforts

Concerns that current restructuring measures may not be enough.

SMA Solar Technology Business Overview & Revenue Model

Company Description

SMA Solar Technology AG is a leading global provider of solar inverters and energy management solutions, headquartered in Niestetal, Germany. The company specializes in the development and manufacturing of solar inverters that convert direct current (DC) produced by solar panels into usable alternating current (AC), enabling the integration of solar energy into the electrical grid. SMA operates in various sectors including residential, commercial, and utility-scale solar applications, offering a range of products such as string inverters, central inverters, and monitoring systems, as well as services related to energy management and optimization.

How the Company Makes Money

SMA Solar Technology primarily generates revenue through the sale of solar inverters, which are essential components of solar power systems. The company has a diversified revenue model that includes sales of hardware, software solutions for energy management, and maintenance services. Key revenue streams include direct sales to installers and developers of solar projects, as well as partnerships with energy providers and system integrators. Additionally, SMA benefits from ongoing service agreements and warranty extensions that provide recurring revenue. The company's strong market position is bolstered by strategic partnerships with other technology and energy firms, enhancing its ability to offer comprehensive solutions and capture a larger share of the growing renewable energy market.

SMA Solar Technology Financial Statement Overview

Summary

SMA Solar Technology is facing financial challenges, with declining revenue and profitability, negative cash flow growth, and a negative return on equity. While the balance sheet remains moderately leveraged, the company's ability to generate cash and profits is under pressure, posing risks to its financial health.

Income Statement

SMA Solar Technology has experienced a decline in revenue and profitability over the TTM period. The gross profit margin has decreased to 15.86% from 16.52% in the previous year, and the net profit margin is negative at -9.40%. The company is facing challenges in maintaining profitability, as evidenced by negative EBIT and EBITDA margins. Revenue growth has also been negative, indicating a contraction in sales.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a conservative use of leverage. However, the return on equity is negative at -22.25%, reflecting the company's struggle to generate profits from shareholders' equity. The equity ratio is relatively stable, suggesting a balanced capital structure.

Cash Flow

SMA Solar Technology's cash flow performance is concerning, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is negative, highlighting cash flow difficulties relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.53B	1.90B	1.07B	983.67M	1.03B
Gross Profit	179.85M	252.81M	559.34M	224.27M	175.45M	166.77M
EBITDA	-89.09M	-15.61M	316.19M	77.72M	9.61M	71.56M
Net Income	-204.22M	-117.73M	225.67M	55.82M	-23.00M	28.09M
Balance Sheet
Total Assets	1.51B	1.54B	1.62B	1.11B	1.05B	1.05B
Cash, Cash Equivalents and Short-Term Investments	233.44M	208.96M	266.99M	206.61M	237.48M	238.30M
Total Debt	168.41M	196.23M	31.85M	23.66M	46.66M	41.13M
Total Liabilities	1.01B	987.91M	935.73M	646.50M	642.09M	612.05M
Stockholders Equity	505.48M	553.32M	686.18M	463.52M	410.41M	439.15M
Cash Flow
Free Cash Flow	83.51M	-202.77M	56.41M	-33.16M	46.74M	-70.16M
Operating Cash Flow	150.28M	-112.82M	140.78M	28.66M	94.26M	-31.38M
Investing Cash Flow	-64.48M	-28.87M	-85.99M	42.52M	-81.62M	-36.53M
Financing Cash Flow	-64.71M	117.23M	-2.58M	-19.34M	-20.76M	-12.37M

SMA Solar Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:S92, the sentiment is Negative. The current price of 18.94 is below the 20-day moving average (MA) of 21.49, below the 50-day MA of 21.44, and above the 200-day MA of 17.74, indicating a neutral trend. The MACD of -0.79 indicates Positive momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 23.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:S92.

SMA Solar Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
S92	40 Neutral	€657.22M	5.94	-33.48%	2.64%	-22.76%	-222.81%
0QV6	―	€145.00M	328.00	0.20%	3.33%	―	―
0NP9	―	€1.38B	12.63	13.52%	―	―	―
KTE	―	€257.13M	―		―	―	―
SJJ	―	€196.35M	442.08	0.97%	―	―	―
CTNK	75 Outperform	€98.62M	3.80	26.96%	―	57.50%	38.81%