SMA Solar Technology (S92) AI Stock Analysis

• Market Cap: €737.03M
• Dividend Yield: 2.06%
• Average Volume (3M): 161.17K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 2.14
• Revenue Growth: -19.65%
• EPS Growth: -152.17%
• Country: DE
• Employees: 4,097
• Sector: Technology
• Sector Strength: 84
• Industry: Solar
• EPS (TTM): 0.16
• Shares Outstanding: 34,700,000
• 10 Day Avg. Volume: 170,935
• 30 Day Avg. Volume: 161,166
• PEG Ratio: -0.12
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -69.96
• 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: €18.50
• Price Target Upside: -23.74% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: ―

SMA Solar Technology faces significant challenges, particularly in profitability and cash flow, dragging down its overall score. The stable balance sheet with no debt is a positive factor, but the technical indicators and negative valuation metrics further weigh on the stock's performance. Without recent earnings call or corporate events data to influence the score, the focus remains on addressing operational and cash flow issues for future stability.

Positive Factors

Demand

Strong demand for storage is creating excitement among analysts.

Free Cash Flow

Strong free cash flow of €96 million was primarily driven by working capital.

Order Backlog

The product order backlog ended the year at €1.03 billion, indicating strong demand.

Negative Factors

Competition and Uncertainty

More intense competition and US uncertainty are negatively affecting the outlook.

Order Visibility

The lack of order visibility and heightened volatility in shares is keeping analysts cautious.

Residential and Commercial Sectors

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

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 makes money primarily through the sale of its solar inverters and related energy management solutions. The company's revenue model is based on the manufacturing and distribution of both string and central inverters, which are critical components in converting direct current (DC) generated by solar panels into alternating current (AC) for use in electrical grids. SMA also offers a range of energy management systems and services, including monitoring and maintenance services, which contribute to its recurring revenue streams. Significant partnerships with solar project developers and utility companies, as well as ongoing advancements in solar technology, further enhance SMA's market position and financial performance.

SMA Solar Technology Financial Statement Overview

Summary

SMA Solar Technology has shown mixed financial results. Despite strong revenue growth from 2019 to 2023, 2024 saw a significant downturn with a 20% revenue drop and negative net income. The balance sheet is stable with no debt and a strong equity position, but declining stockholders' equity and assets suggest caution. Negative cash flows in 2024 indicate potential cash generation issues.

Income Statement

SMA Solar Technology experienced volatility in its income statement metrics. While the company showed strong revenue growth from 2019 to 2023, it faced a significant decline in 2024, with revenue dropping by about 20% year-over-year. The gross profit margin deteriorated over time, reaching approximately 16.5% in 2024. Net income turned negative in 2024, resulting in a negative net profit margin of around -7.7%, indicating profitability challenges. The EBIT and EBITDA margins also turned negative in 2024, further highlighting operational difficulties.

Balance Sheet

The balance sheet of SMA Solar Technology remained relatively stable, with a strong equity position. The company's debt-to-equity ratio improved to 0 by 2024, as total debt was eliminated. Stockholders' equity represented 35.9% of total assets in 2024, which indicates a healthy equity ratio. However, the decline in stockholders' equity and total assets over the years suggests a need for caution regarding asset management and growth sustainability.

Cash Flow

SMA Solar Technology's cash flow performance was weakened by negative operating and free cash flows in 2024. The free cash flow growth rate was negative, reversing the positive trend from previous years. The operating cash flow to net income ratio was negative due to both negative figures, indicating cash generation issues. Despite these challenges, the company managed to maintain positive financing cash flow in 2024, suggesting effective external funding efforts.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.50B	1.53B	1.90B	1.07B	983.67M	1.03B
Gross Profit	237.23M	252.81M	559.34M	224.27M	175.45M	166.77M
EBITDA	-48.05M	-15.61M	316.19M	77.72M	9.61M	71.56M
Net Income	-140.65M	-117.73M	225.67M	55.82M	-23.00M	28.09M
Balance Sheet
Total Assets	1.64B	1.54B	1.62B	1.11B	1.05B	1.05B
Cash, Cash Equivalents and Short-Term Investments	294.36M	208.96M	266.99M	206.61M	237.48M	238.30M
Total Debt	0.00	0.00	31.85M	23.66M	46.66M	41.13M
Total Liabilities	1.08B	987.91M	935.73M	646.50M	642.09M	612.05M
Stockholders Equity	557.40M	553.32M	686.18M	463.52M	410.41M	439.15M
Cash Flow
Free Cash Flow	-42.81M	-202.77M	56.41M	-33.16M	46.74M	-70.16M
Operating Cash Flow	40.43M	-112.82M	140.78M	28.66M	94.26M	-31.38M
Investing Cash Flow	-80.95M	-28.87M	-85.99M	42.52M	-81.62M	-36.53M
Financing Cash Flow	92.47M	117.23M	-2.58M	-19.34M	-20.76M	-12.37M

SMA Solar Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 24.26 is above the 20-day moving average (MA) of 19.40, above the 50-day MA of 18.97, and above the 200-day MA of 16.39, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 78.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	63 Neutral	$33.24B	5.92	-11.55%	1.90%	5.54%	-20.14%
S92	52 Neutral	€737.03M	5.94	-19.00%	2.06%	-19.65%	-152.17%
0QV6		€145.49M	326.18	0.20%	3.34%	―	―
0NP9		€1.76B	17.51	12.25%	0.96%	―	―
KTE		€317.81M	―		―	―	―
SJJ		€176.40M	―	-0.21%	―	―	―
CTNK	86 Outperform	€114.28M	4.40	26.96%	―	57.50%	38.81%