SMA Solar Technology (S92) AI Stock Analysis

• Market Cap: €1.19B
• Dividend Yield: 1.51%
• Average Volume (3M): 129.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -1.31%
• EPS Growth: -471.36%
• Country: DE
• Employees: 4,097
• Sector: Energy
• Sector Strength: 52
• Industry: Solar
• EPS (TTM): -2.94
• Shares Outstanding: 34,700,000
• 10 Day Avg. Volume: 105,567
• 30 Day Avg. Volume: 129,249
• PEG Ratio: 0.03
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -2.32
• 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: €26.50
• Price Target Upside: -22.51% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: €37.00 ▲(8.19% Upside)

The overall stock score is primarily influenced by the company's financial performance and technical analysis. While revenue growth and positive technical indicators are strengths, profitability challenges and valuation concerns significantly impact the score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Market Leadership & Product Mix

SMA's established position as a global leader in inverters, storage and energy-management software creates durable demand for essential PV system components. Its broad product set and long-standing partnerships support recurring sales, service contracts and cross-sell opportunities over multiple cycles.

Conservative Leverage

A low debt-to-equity ratio indicates manageable leverage, preserving financial flexibility. This reduces refinancing risk and allows SMA to fund R&D, capex for manufacturing and electrification initiatives, and absorb policy or project timing shifts without excessive liquidity stress.

Improving Free Cash Flow

Rising free cash flow and positive operating cash flow relative to net income strengthen SMA's ability to self-fund product development, service obligations and working capital. Consistent cash generation supports long-term investments in storage and software integration.

Negative Factors

Negative Profitability

Sustained negative net profit and EBIT margins impair SMA's capacity to generate shareholder returns and internally finance growth. If profitability does not recover, the company may need prolonged restructuring or external financing, weakening long-run strategic execution and competitiveness.

Declining Gross Margin

A falling gross margin signals mounting input, manufacturing or pricing pressure. Persistent margin erosion reduces operating leverage and constrains investment in R&D and product differentiation, risking commoditization of key inverter products and weaker long-term competitive positioning.

Eroding Equity & Negative ROE

Negative ROE and shrinking shareholders' equity weaken balance-sheet resilience and limit capacity for large projects or M&A without external capital. Over time this constrains strategic optionality and increases vulnerability to industry downturns or prolonged investment cycles.

SMA Solar Technology Business Overview & Revenue Model

Company Description

SMA Solar Technology AG, together with its subsidiaries, engages in development, production, and sale of PV and battery inverters, transformers, chokes, monitoring systems for PV systems, and charging solutions for electric vehicles in Germany and internationally. It operates through Home Solutions, Business Solutions, and Large Scale and Project Solutions segments. The company offers string and central solar inverters for various module types; battery inverters for high voltage batteries, on- and off- grid applications, commercial and industrial storage solutions, large scale storage solutions, and accessories; medium-voltage technology products; and DC-DC converters. It also provides E-mobility charging solutions; monitoring and control solutions for PV systems; and energy data services, as well as digital solutions to design, operate, and service PV systems and energy systems. The company was formerly known as SMA Technologie AG and changed its name to SMA Solar Technology AG in June 2008. SMA Solar Technology AG was founded in 1981 and is headquartered in Niestetal, Germany.

How the Company Makes Money

SMA Solar Technology generates revenue primarily through the sale of solar inverters and related products, which are essential components in solar energy systems. Its key revenue streams include the sale of string inverters, central inverters, and storage solutions, as well as software solutions for energy management. Additionally, the company benefits from service contracts and maintenance agreements that provide ongoing revenue. SMA has established significant partnerships with solar module manufacturers, system integrators, and energy providers, enhancing its market reach and driving sales. The growing global demand for renewable energy solutions, along with government incentives for solar energy adoption, further contributes to its earnings.

SMA Solar Technology Financial Statement Overview

Summary

SMA Solar Technology shows revenue growth but struggles with profitability, as indicated by negative net profit and EBIT margins. The balance sheet reflects moderate stability with low leverage but negative return on equity. Cash flow management has improved, particularly in free cash flow growth, yet requires further enhancement.

Income Statement

SMA Solar Technology has shown a mixed performance in its income statement. The TTM data indicates a revenue growth rate of 10.27%, which is a positive sign. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has also declined from previous years, indicating increased cost pressures. Overall, while revenue is growing, profitability remains a significant challenge.

Balance Sheet

The balance sheet of SMA Solar Technology shows moderate financial stability. The debt-to-equity ratio is relatively low at 0.33 in the TTM, suggesting manageable leverage. However, the return on equity is negative, reflecting the company's profitability issues. The equity ratio indicates a reasonable proportion of equity financing, but the declining stockholders' equity over time is a concern.

Cash Flow

The cash flow statement reveals some positive trends, particularly in free cash flow growth, which has increased significantly in the TTM. The operating cash flow to net income ratio is positive, indicating some level of operational efficiency. However, the free cash flow to net income ratio suggests that cash generation relative to net income could be improved. Overall, cash flow management shows improvement but still requires attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.61B	1.53B	1.90B	1.07B	983.67M	1.03B
Gross Profit	78.21M	252.81M	559.34M	224.27M	175.45M	166.77M
EBITDA	-117.19M	-15.61M	316.19M	77.72M	9.61M	71.56M
Net Income	-297.00M	-117.73M	225.67M	55.82M	-23.00M	28.09M
Balance Sheet
Total Assets	1.39B	1.54B	1.62B	1.11B	1.05B	1.05B
Cash, Cash Equivalents and Short-Term Investments	252.08M	208.96M	266.99M	206.61M	237.48M	238.30M
Total Debt	165.06M	196.23M	31.85M	23.66M	46.66M	41.13M
Total Liabilities	987.75M	987.91M	935.73M	646.50M	642.09M	612.05M
Stockholders Equity	402.23M	553.32M	686.18M	463.52M	410.41M	439.15M
Cash Flow
Free Cash Flow	154.66M	-202.77M	56.41M	-33.16M	46.74M	-70.16M
Operating Cash Flow	203.09M	-112.82M	140.78M	28.66M	94.26M	-31.38M
Investing Cash Flow	-52.42M	-28.87M	-85.99M	42.52M	-81.62M	-36.53M
Financing Cash Flow	-91.03M	117.23M	-2.58M	-19.34M	-20.76M	-12.37M

SMA Solar Technology Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.20
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 34.2 is below the 20-day moving average (MA) of 35.80, below the 50-day MA of 35.05, and above the 200-day MA of 25.13, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 25.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:S92.

SMA Solar Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTNK	80 Outperform	€241.25M	6.98	34.03%	―	94.73%	83.64%
AIXA	78 Outperform	€2.26B	24.62	10.99%	0.88%	-3.93%	-20.93%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HRPK	61 Neutral	€134.42M	-33.24	-1.85%	3.86%	4.52%	-263.49%
S92	56 Neutral	€1.19B	-4.00	-53.73%	1.51%	-1.31%	-471.36%