Maxeon Solar Technologies (MAXN) AI Stock Analysis

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Maxeon Solar Technologies

(NASDAQ:MAXN)

Rating:46Neutral

Price Target:

$3.50

▼(-9.09%Downside)

Maxeon Solar Technologies faces significant financial challenges with declining revenues, negative profitability, and poor balance sheet health, heavily impacting its overall score. While there is some short-term technical momentum, it is overshadowed by long-term negative trends. The valuation metrics are also unfavorable due to negative earnings. The absence of dividends further diminishes the stock's appeal.

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

Market Cap

$65.05M

Dividend YieldN/A

Average Volume (3M)175.29K

Price to Earnings (P/E)―

Beta (1Y)1.74

Revenue Growth-54.68%

EPS Growth63.56%

CountryUS

Employees1,591

SectorTechnology

Sector Strength87

IndustrySolar

Share Statistics

EPS (TTM)N/A

Shares Outstanding16,896,729

10 Day Avg. Volume222,213

30 Day Avg. Volume175,291

Financial Highlights & Ratios

PEG Ratio203.40

Price to Book (P/B)1.55K

Price to Sales (P/S)0.00

P/FCF Ratio-1.09K

Enterprise Value/Market Cap1.01K

Enterprise Value/Revenue21.85

Enterprise Value/Gross Profit-264.38

Enterprise Value/Ebitda-40.92

Forecast

1Y Price Target

$4.00

Price Target Upside3.90% Upside

Rating ConsensusHold

Number of Analyst Covering0

Maxeon Solar Technologies Business Overview & Revenue Model

Company DescriptionMaxeon Solar Technologies (MAXN) is a leading global solar technology company specializing in the research, development, and manufacturing of advanced solar panels and energy solutions. The company primarily operates in the renewable energy sector, providing high-efficiency solar panels under the SunPower brand to residential, commercial, and industrial customers worldwide. Maxeon Solar Technologies is renowned for its innovation in solar technology, offering products that are known for their durability, efficiency, and aesthetic appeal.

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 Earnings Call Summary

Earnings Call Date:May 22, 2025

(Q1-2024)

% Change Since: 17.02%|

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.

Maxeon Solar Technologies Financial Statement Overview

Summary

Maxeon Solar Technologies is facing substantial financial challenges. The income statement reflects declining revenue and persistent losses. The balance sheet is under pressure with negative equity and high liabilities. Cash flow issues are evident with negative operating and free cash flow, indicating operational and financial sustainability concerns.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	-507.79M	-175.21M	-141.33M	-169.00M	-46.50M
Net Income	-614.30M	-275.83M	-258.07M	-239.27M	-137.81M
Balance Sheet
Total Assets	376.27M	1.00B	1.26B	1.06B	980.34M
Cash, Cash Equivalents and Short-Term Investments	28.89M	190.17M	303.44M	166.54M	206.74M
Total Debt	311.49M	437.66M	449.80M	187.27M	198.98M
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

Positive

Last Price3.85

Price Trends

50DMA

3.20

Positive

100DMA

3.47

Positive

200DMA

5.50

Negative

Market Momentum

MACD

0.08

Negative

RSI

66.12

Neutral

STOCH

98.03

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAXN, the sentiment is Positive. The current price of 3.85 is above the 20-day moving average (MA) of 3.13, above the 50-day MA of 3.20, and below the 200-day MA of 5.50, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 66.12 is Neutral, neither overbought nor oversold. The STOCH value of 98.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks

Maxeon Solar Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSLR	77 Outperform	$19.84B	15.73	16.77%	―	19.42%	23.19%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
JKS	60 Neutral	$1.22B	118.10	-9.49%	5.27%	-30.26%	-156.69%
RUN	55 Neutral	$2.40B	―	-69.47%	―	-2.08%	-80.64%
CSIQ	54 Neutral	$838.49M	20.05	-0.39%	―	-19.06%	-104.91%
SEDG	53 Neutral	$1.63B	―	-121.50%	―	-57.89%	-559.87%
MAXN	46 Neutral	$65.05M	―	307.38%	―	-54.68%	63.56%

* Technology Sector Average

Performance Comparison

MAXN

Maxeon Solar Technologies

3.85

-23.15

-85.74%

CSIQ

Canadian Solar

12.52

-3.01

-19.38%

FSLR

First Solar

185.03

-42.09

-18.53%

JKS

JinkoSolar

24.29

5.89

32.01%

SEDG

SolarEdge Technologies

27.54

0.17

0.62%

RUN

Sunrun

10.50

-2.15

-17.00%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 03, 2025