Solaria Energia y Medio Ambiente (SLR) AI Stock Analysis

• Market Cap: €2.61B
• Dividend Yield: N/A
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.24
• Revenue Growth: 43.90%
• EPS Growth: 123.87%
• Country: ES
• Employees: 256
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.07
• Shares Outstanding: 124,950,880
• 10 Day Avg. Volume: 1,984,762
• 30 Day Avg. Volume: 1,755,906
• PEG Ratio: 0.03
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 5.08
• P/FCF Ratio: -3.85
• 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: €19.62
• Price Target Upside: -5.94% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.2
• Revenue Forecast (FY): €379.02M

• Rating: 61 Neutral
• Price Target: €20.50 ▼(-1.73% Downside)
• Action: Downgraded Date: 03/07/26
• Date: Action: Downgraded 03/07/26

The score is held back primarily by financial risk: elevated and rising leverage alongside consistently negative free cash flow, despite strong reported profitability. Offsetting this, technicals are moderately supportive with price above key moving averages and a positive MACD, and valuation looks attractive given the low P/E.

Positive Factors

Strong reported profitability and margins

Reported net income rising to €137.4M in 2025 demonstrates durable earnings power from existing assets. Sustained profitability supports reinvestment and underwriting of new projects, underpins return on equity (~19.5% noted), and provides a buffer while development and construction cycles complete.

Positive operating cash flow from operations

Operating cash flow of €138.2M in 2025 shows core PV assets generate cash at the operating level. That recurring cash generation helps fund O&M and portions of growth capex, reducing reliance on short-term liquidity for daily operations even if overall free cash flow is negative.

Asset-centric solar PV business model

A focus on developing and operating solar PV plants aligns with long-term structural demand for renewable generation. Asset ownership delivers recurring electricity sales revenue and operational scale benefits; the integrated model (site, permitting, build, operate) supports sustained project pipeline conversion.

Negative Factors

Deeply negative free cash flow

Free cash flow of roughly -€260.1M in 2025 indicates capital spending and working capital needs exceed operating cash generation. Persistently negative FCF forces ongoing external financing, raising execution and dilution risk and limiting self-funded growth over the medium term.

High and rising leverage

Total debt increased to €1.69B and debt/equity sits near 2.39x, leaving the firm sensitive to refinancing and interest-rate moves. Elevated leverage constrains financial flexibility, raises fixed servicing costs, and magnifies downside if project timings or merchant prices weaken.

Recent top-line contraction

A roughly 21% revenue decline in 2025, after prior growth, signals execution, timing or market-demand variability in project sales or generation volumes. Sustained revenue weakness would pressure margins, cash flow conversion and the company’s ability to self-fund expansion over the medium term.

Solaria Energia y Medio Ambiente Business Overview & Revenue Model

Company Description

Solaria Energía y Medio Ambiente, S.A. engages in the solar photovoltaic power generation business. The company owns, manages, and operates photovoltaic plants in Spain, Italy, Uruguay, and Greece. The company was incorporated in 2002 and is headquartered in Madrid, Spain.

How the Company Makes Money

SLR generates revenue through the sale of electricity produced by its solar power plants, which are connected to the national grid. The company enters into power purchase agreements (PPAs) with utility companies and large energy consumers, securing long-term contracts that ensure a steady income stream. Additionally, SLR benefits from government incentives and subsidies for renewable energy production, which further bolsters its financial performance. The company may also engage in the sale of solar technology and installation services, contributing to its overall revenue. Strategic partnerships with local governments and other energy firms facilitate access to new markets and enhance its operational capabilities, thereby driving revenue growth.

Solaria Energia y Medio Ambiente Financial Statement Overview

Summary

Strong reported profitability with net income rising to 137.4M in 2025, but revenue declined ~21% in 2025 and leverage is high and increasing (debt 1.69B; ~2.39x debt-to-equity). Free cash flow is deeply negative (-260.1M in 2025) despite positive operating cash flow, indicating ongoing funding reliance and elevated financial risk.

Income Statement

Profitability is strong across the period, with very high reported gross and net margins and net income rising to 137.4M in 2025 from 88.6M in 2024. However, growth has turned negative recently: revenue fell ~21% in 2025 after a slight decline in 2024, following strong growth in 2021–2023. Overall, earnings power looks solid, but the near-term top-line trajectory is a key concern.

Balance Sheet

Leverage is elevated and rising: total debt increased to 1.69B in 2025 from 1.15B in 2024, and debt relative to equity sits at ~2.39x (still high even versus prior years). Equity has grown, and returns on equity are healthy (~19.5% in 2025), but the capital structure is debt-heavy, which increases refinancing and rate-sensitivity risk.

Cash Flow

Operating cash flow is positive (138.2M in 2025), but free cash flow remains deeply negative (about -260.1M in 2025, also negative in every year shown). Cash generation is not keeping pace with spending needs, implying ongoing reliance on debt and/or equity funding despite accounting profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	249.06M	197.40M	176.91M	191.32M	139.28M	95.07M
Gross Profit	249.06M	111.60M	176.91M	190.95M	137.71M	94.18M
EBITDA	257.70M	265.50M	201.90M	201.50M	147.73M	93.67M
Net Income	129.05M	137.40M	88.61M	107.51M	90.05M	48.03M
Balance Sheet
Total Assets	2.17B	2.44B	1.97B	1.65B	1.43B	1.04B
Cash, Cash Equivalents and Short-Term Investments	52.17M	84.17M	60.83M	77.40M	150.77M	153.15M
Total Debt	1.27B	1.51B	1.15B	1.06B	881.55M	667.02M
Total Liabilities	1.50B	1.73B	1.35B	1.12B	1.08B	795.40M
Stockholders Equity	670.77M	704.20M	613.89M	522.92M	343.29M	247.35M
Cash Flow
Free Cash Flow	0.00	-260.10M	-72.07M	-230.53M	-216.98M	-101.24M
Operating Cash Flow	0.00	138.16M	115.32M	98.08M	114.49M	94.02M
Investing Cash Flow	0.00	-398.26M	-187.39M	-328.61M	-331.47M	-195.26M
Financing Cash Flow	0.00	279.08M	49.12M	157.16M	210.62M	172.79M

Solaria Energia y Medio Ambiente Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.86
• 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 ES:SLR, the sentiment is Positive. The current price of 20.86 is above the 20-day moving average (MA) of 19.77, above the 50-day MA of 18.69, and above the 200-day MA of 14.53, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 61.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:SLR.

Solaria Energia y Medio Ambiente Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
SLR	61 Neutral	€2.61B	7.29	26.57%	―	43.90%	123.87%
GRE	54 Neutral	€2.89B	28.28	21.09%	―	―	―
ANE	52 Neutral	€6.76B	11.10	12.80%	2.02%	2.05%	307.60%
ADX	48 Neutral	€569.51M	-85.25	17.10%	5.20%	3.59%	-29.28%
SOL	40 Underperform	€654.61M	-1.68	―	―	-65.28%	24.77%