Maxeon Solar Technologies (MAXN) AI Stock Analysis

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Maxeon Solar Technologies

(NASDAQ:MAXN)

Rating:45Neutral

Price Target:

$3.00

▼( -8.81% Downside)

Maxeon Solar Technologies' overall stock score is primarily impacted by its challenging financial performance, marked by declining revenues and profitability issues. The technical analysis shows mixed short-term signals but does not counterbalance the negative financial outlook. The valuation metrics further reflect a high-risk scenario, with a negative P/E ratio and lack of dividend yield. These factors contribute to a low overall stock score, highlighting significant risks for potential investors.

Maxeon Solar Technologies (MAXN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$50.35M

Dividend YieldN/A

Average Volume (3M)193.14K

Price to Earnings (P/E)―

Beta (1Y)1.58

Revenue Growth-54.68%

EPS Growth63.56%

CountryUS

Employees1,591

SectorTechnology

Sector Strength75

IndustrySolar

Share Statistics

EPS (TTM)N/A

Shares Outstanding16,896,729

10 Day Avg. Volume237,699

30 Day Avg. Volume193,136

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)-0.09

Price to Sales (P/S)0.00

P/FCF Ratio-0.16

Enterprise Value/Market Cap6.67

Enterprise Value/Revenue0.11

Enterprise Value/Gross Profit-1.35

Enterprise Value/Ebitda-0.21

Forecast

1Y Price Target

$4.00

Price Target Upside21.58% Upside

Rating ConsensusHold

Number of Analyst Covering0

Maxeon Solar Technologies Business Overview & Revenue Model

Company DescriptionMaxeon Solar Technologies, Ltd. designs, manufactures, markets, and sells solar panels and related solar system components worldwide. The company provides interdigitated back contact and shingled solar cells and panels under the SunPower brand. It offers its products to dealers, project developers, system integrators, distributors, resellers, and residential and small-scale commercial customers. Maxeon Solar Technologies, Ltd. was incorporated in 2019 and is headquartered in Singapore.

How the Company Makes MoneyMaxeon Solar Technologies generates revenue primarily through the sale of its solar panels and systems. The company's key revenue streams include the manufacture and distribution of high-efficiency solar panels to residential, commercial, and utility-scale customers. Maxeon also engages in strategic partnerships and supply agreements with key players in the solar industry to expand its market reach and optimize its manufacturing processes. Additionally, the company invests in research and development to enhance its product offerings and maintain a competitive edge in the rapidly evolving solar technology market.

Maxeon Solar Technologies Financial Statement Overview

Summary

Maxeon Solar Technologies faces significant financial challenges. The income statement reveals a sharp decline in revenue and negative profitability metrics, indicating cost inefficiencies and operational difficulties. The balance sheet shows negative stockholders' equity and high leverage, pointing to financial instability. Cash flow issues are evident with negative operating and free cash flows, highlighting liquidity challenges and reliance on external financing.

Income Statement

Negative

Maxeon Solar Technologies has experienced a significant decline in total revenue over the recent years, with the 2024 revenue nearly halving from 2023. Gross profit margin is negative, indicating cost inefficiencies or pricing pressures. The company has a negative net profit margin, highlighting profitability challenges. EBIT and EBITDA margins are also negative, suggesting operational difficulties. Overall, the income statement reflects a challenging financial environment with declining revenues and negative profitability metrics.

Balance Sheet

Very Negative

The company's balance sheet shows negative stockholders' equity, a concerning indicator of financial health. The debt-to-equity ratio is not calculable due to negative equity, but high total liabilities relative to assets suggest leverage issues. The equity ratio is negative, further highlighting the financial instability. The balance sheet reflects a precarious financial position with high leverage and negative equity.

Cash Flow

Negative

Operating cash flow is negative, indicating that the company's core operations are not generating cash. The free cash flow is also negative, showing cash outflows exceeding inflows, with no visible improvement trend. The cash flow metrics highlight liquidity challenges and the need for external financing to sustain operations. While financing cash flow is positive, indicating external funding, reliance on it is not ideal for long-term sustainability.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
509.05M	1.12B	1.06B	783.28M	844.84M
	Gross Profit
-249.41M	78.11M	-47.95M	-29.01M	-9.78M
	EBIT
-576.64M	-219.21M	-200.29M	-172.45M	-130.18M
	EBITDA
-507.79M	-175.21M	-141.33M	-169.00M	-46.50M
	Net Income Common Stockholders
-614.30M	-275.83M	-258.07M	-239.27M	-137.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.89M	190.17M	303.44M	166.54M	206.74M
	Total Assets
376.27M	1.00B	1.26B	1.06B	980.34M
	Total Debt
311.49M	437.66M	449.80M	187.27M	198.98M
	Net Debt
282.60M	247.49M	222.36M	20.73M	-7.76M
	Total Liabilities
664.64M	997.37M	1.21B	701.67M	541.06M
	Stockholders Equity
-293.84M	-1.11M	42.44M	349.46M	432.64M
Cash Flow		Free Cash Flow
-322.31M	-321.89M	-60.04M	-159.54M	-216.85M
	Operating Cash Flow
-270.16M	-254.29M	3.44M	-4.87M	-189.16M
	Investing Cash Flow
-25.24M	13.93M	-139.30M	-154.45M	-45.49M
	Financing Cash Flow
141.23M	167.95M	211.47M	141.81M	320.35M

Maxeon Solar Technologies Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.29

Price Trends

50DMA

3.25

Negative

100DMA

4.45

Negative

200DMA

6.90

Negative

Market Momentum

MACD

0.06

Positive

RSI

42.90

Neutral

STOCH

21.90

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAXN, the sentiment is Negative. The current price of 3.29 is below the 20-day moving average (MA) of 3.34, above the 50-day MA of 3.25, and below the 200-day MA of 6.90, indicating a bearish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 42.90 is Neutral, neither overbought nor oversold. The STOCH value of 21.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAXN.

Maxeon Solar Technologies Risk Analysis

Maxeon Solar Technologies disclosed 55 risk factors in its most recent earnings report. Maxeon Solar Technologies reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 3 New Risks

We have received an unqualified opinion that included an explanatory paragraph regarding the Company's ability to continue as a going concern from our auditors. Q4, 2023

Our cash flows have been, and may continue to be, negatively impacted by lower revenue as a result of increasing price competition, loss of a significant customer, as well as the general economic environment, cumulatively resulting in lower margins, among other implications. Q4, 2023

We may be unable to obtain access to external financing necessary to make adequate capital expenditures necessary to improve our profitability, remain competitive and grow our business. Q4, 2023

Maxeon Solar Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSLR	77 Outperform	$17.93B	13.89	16.77%	―	19.42%	23.19%
JKS	63 Neutral	$957.36M	118.10	-9.49%	15.76%	-30.26%	-156.69%
Sector *	61 Neutral	$11.41B	10.19	-7.05%	2.95%	7.46%	-10.52%
RUN	50 Neutral	$2.64B	―	-69.47%	―	-2.08%	-80.64%
CSIQ	48 Neutral	$731.89M	20.05	-0.39%	―	-19.06%	-104.91%
MAXN	45 Neutral	$50.35M	―	307.38%	―	-54.68%	63.56%
SEDG	44 Neutral	$1.22B	―	-121.50%	―	-57.89%	-559.87%

* Technology Sector Average

Performance Comparison

MAXN

Maxeon Solar Technologies

2.98

-309.02

-99.04%

CSIQ

Canadian Solar

9.82

-7.84

-44.39%

FSLR

First Solar

156.35

-93.46

-37.41%

JKS

JinkoSolar

18.47

-6.12

-24.89%

SEDG

SolarEdge Technologies

14.94

-32.27

-68.35%

RUN

Sunrun

6.71

-5.28

-44.04%

Maxeon Solar Technologies Earnings Call Summary

Earnings Call Date:May 22, 2025

(Q1-2024)

% Change Since: 0.00%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Negative

The earnings call highlighted significant liquidity support and strategic restructuring measures, alongside expansion efforts in the U.S. market and defensive actions on intellectual property. However, these positives are overshadowed by substantial cash flow challenges, customer delays, inventory issues, and significant shareholder dilution.

Q1-2024 Updates

Positive Updates

Liquidity Support and Restructuring

Maxeon negotiated commitments for significant liquidity support from its largest shareholder, TZE, and restructured its 2025 convertible bonds, with the majority expected to be converted into equity, stabilizing the balance sheet.

U.S. Dealer Channel Expansion

Maxeon signed up more than 100 U.S. dealers since the last earnings call, aiming to grow its market share in the U.S. residential market, with a focus on premium products.

Patent Infringement Actions

The company initiated patent infringement cases against several competitors, intending to monetize its intellectual property in shingling, TOPCon, and IBC technologies.

Negative Updates

Significant Cash Flow Challenges

Maxeon faced cash flow challenges due to Chinese module oversupply, high interest rates, policy changes, and the termination of the SunPower supply agreement.

Utility Scale Customer Delays

Two large utility scale customers experienced project delays, impacting Maxeon's production, increasing product costs, and affecting financial results for 2024.

Inventory and Demand Issues

Maxeon struggled with high inventory levels and slower-than-anticipated inventory turnover, particularly in the European market facing oversupply and price erosion.

Substantial Shareholder Dilution

The liquidity transactions with TZE are expected to result in substantial dilution for existing shareholders.

Company Guidance

During the Maxeon Solar Technologies Q1 2024 Earnings Call, the company provided guidance indicating significant financial challenges due to market dislocation, including Chinese module oversupply, high interest rates, and policy changes. As a result, Maxeon faced cash flow issues, exacerbated by the termination of a supply agreement and project delays from two major utility scale customers. To address these challenges, Maxeon secured a $97.5 million debt investment and a $100 million equity commitment from its largest shareholder, TZE, subject to regulatory approval. This financing is expected to stabilize their balance sheet, despite resulting in substantial dilution for existing shareholders. The company anticipates Q2 2024 shipments of 520 to 600 megawatts and annual revenues between $640 million and $800 million, with a focus on rebuilding its U.S. distributed generation channel and transitioning to newer technologies to return to profitability by early 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.