Solaria Energia y Medio Ambiente (SLR) AI Stock Analysis

• Market Cap: €2.68B
• 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: €22.50
• Price Target Upside: 7.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.2
• Revenue Forecast (FY): €379.02M

• Rating: 61 Neutral
• Price Target: €22.50 ▲(7.86% Upside)
• 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 profitability

Reported net income of 137.4M in 2025 and sustained high margins indicate durable earnings power from operating solar assets. Strong profitability supports internal reinvestment and can improve coverage metrics, helping long-term creditworthiness if margins persist.

Positive operating cash flow

Positive operating cash flow demonstrates the core generation business converts revenue into cash, underpinning operations and servicing short-term obligations. Over months this provides stability versus purely accrual earnings, aiding ongoing plant operations and working capital needs.

Renewables-focused business model

A vertically integrated solar PV model (site securing, permitting, construction, operation) captures value across development and operating stages. Structural decarbonization and policy support for renewables create persistent demand for utility-scale solar generation capacity over the medium term.

Negative Factors

Elevated leverage

High and increasing leverage (1.69B debt; ~2.39x D/E) creates lasting refinancing and interest-rate sensitivity. A debt-heavy capital structure constrains strategic flexibility, increases default and covenants risk, and raises cost of capital for new project development over multiple quarters.

Persistent negative free cash flow

Consistently negative free cash flow implies the business cannot fully fund capex from operations and relies on external financing. Over a 2–6 month horizon this structural cash need increases liquidity and refinancing risk and may lead to dilutive equity raises or higher leverage.

Recent top-line weakness

A ~21% revenue decline in 2025, following earlier weakness, signals potential issues with generation volumes, pricing or asset additions. If top-line contraction persists it undermines scalability of earnings and the company's ability to deleverage, making margins and cash flow less reliable.

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

Solaria primarily makes money by selling the electricity generated by its solar PV plants. Revenues are driven by (a) the volume of electricity produced (which depends on installed capacity, solar irradiation, and plant availability) and (b) the price received for that electricity. Sales may occur into wholesale power markets and/or under contractual arrangements with off-takers, but specific counterparties, contract structures, or the split between merchant sales and contracted sales is null. In addition to recurring revenue from operating assets, the company may also generate cash through the development lifecycle—by developing PV projects and then retaining, selling, or partnering on them—but the extent to which Solaria sells projects or holds them long-term is null. Key factors influencing earnings include successful permitting and grid connection, timely construction and commissioning, operating performance of plants, and prevailing electricity price conditions; any specific subsidies, regulated tariff mechanisms, or named partnerships supporting revenues are null.

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	€2.68B	7.29	26.57%	―	43.90%	123.87%
GRE	54 Neutral	€2.98B	28.28	21.09%	―	―	―
ANE	52 Neutral	€6.73B	11.10	12.80%	2.02%	2.05%	307.60%
ADX	48 Neutral	€581.30M	-85.25	17.10%	5.20%	3.59%	-29.28%
SOL	40 Underperform	€845.43M	-1.68	―	―	-65.28%	24.77%