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Maxeon Solar Technologies, Ltd. (MAXN)
NASDAQ:MAXN
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Maxeon Solar Technologies
(NASDAQ:MAXN)
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Rating:39Underperform
Price Target:
$3.00
▲(0.67% Upside)
Maxeon Solar Technologies receives a low overall stock score due to its significant financial challenges, including declining revenues, negative profitability, and weak balance sheet. Technical analysis further indicates bearish momentum, and the valuation is unattractive with a negative P/E ratio. These factors collectively suggest a high-risk investment with limited upside potential.
Positive Factors
Strategic Partnerships
The expanded collaboration with TZE HK enhances Maxeon's R&D capabilities and market reach, potentially leading to improved product offerings and competitive positioning.
Leadership Change
The new director brings strategic growth and financial management experience, which could strengthen Maxeon's strategic direction and market positioning.
Governance Improvements
Strengthened governance through key approvals at the AGM may enhance operational capabilities and investor confidence, supporting long-term stability.
Negative Factors
Financial Instability
Persistent financial challenges, including negative margins and declining revenues, indicate ongoing operational inefficiencies and financial distress, threatening long-term viability.
Cash Flow Challenges
Inability to generate sufficient cash from operations limits Maxeon's ability to invest in growth and manage liabilities, posing a risk to sustainability.
Regulatory Challenges
The exclusion from U.S. imports hampers market access and revenue potential, necessitating strategic adaptations to mitigate long-term impacts.
Maxeon Solar Technologies (MAXN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$53.22M
Dividend YieldN/A
Average Volume (3M)51.75K
Price to Earnings (P/E)―
Beta (1Y)1.52
Revenue Growth-54.68%
EPS Growth63.56%
CountryUS
Employees1,591
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)N/A
Shares Outstanding16,896,729
10 Day Avg. Volume51,157
30 Day Avg. Volume51,753
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.21
Price to Sales (P/S)0.12
P/FCF Ratio-0.19
Enterprise Value/Market Cap6.65
Enterprise Value/Revenue2.00
Enterprise Value/Gross Profit-1.46
Enterprise Value/Ebitda-0.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-2
Revenue Forecast (FY)$1.25B
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 solar panels and related products, including solar energy solutions and services. The company's revenue model is supported by various streams, including direct sales to customers, distribution agreements, and partnerships with installers and other stakeholders in the solar industry. Additionally, Maxeon benefits from government incentives and subsidies aimed at promoting renewable energy adoption, which can enhance its sales volume. The company also engages in long-term contracts and agreements with large-scale customers, contributing to stable revenue flows. Key partnerships with technology providers and financial institutions further bolster its market presence and operational capabilities, aiding in revenue generation.
Maxeon Solar Technologies Earnings Call Summary
Earnings Call Date:May 23, 2024
(Q1-2024)
| % Change Since: |
Next Earnings Date:Apr 07, 2026
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 significant financial difficulties across all major financial statements. The company is experiencing declining revenues, negative profitability margins, and a weak balance sheet with negative equity. Cash flow issues further exacerbate the company's financial instability. These factors collectively indicate a high-risk financial position, requiring urgent strategic interventions to stabilize the business.Income Statement
Maxeon Solar Technologies has been experiencing significant challenges in its income statement. The company has consistently reported negative gross profit margins, indicating that production costs exceed revenues. Net profit margins are also deeply negative, reflecting substantial losses. Revenue has been declining, with a notable decrease of 48.28% in the TTM period, highlighting a severe downturn in sales. The EBIT and EBITDA margins are also negative, further emphasizing operational inefficiencies and financial distress.Balance Sheet
The balance sheet of Maxeon Solar Technologies reveals a precarious financial position. The company has negative stockholders' equity, indicating liabilities exceed assets, which is a significant red flag. The debt-to-equity ratio is negative due to negative equity, suggesting high financial risk. Although the return on equity appears positive, it is misleading due to negative equity. The equity ratio is also negative, underscoring the company's insolvency risk.Cash Flow
Cash flow analysis shows that Maxeon Solar Technologies is struggling with cash generation. Operating cash flow and free cash flow are both negative, indicating the company is not generating sufficient cash from operations to cover its expenses. The free cash flow to net income ratio is positive, but this is due to negative net income, which is not a positive indicator. The operating cash flow to net income ratio is negative, further highlighting cash flow challenges.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 176.41M | 509.05M | 1.12B | 1.06B | 783.28M | 844.84M |
| Gross Profit | -242.06M | -249.41M | 78.11M | -47.95M | -29.01M | -9.78M |
| EBITDA | -504.08M | -507.79M | -175.21M | -141.33M | -169.00M | -46.50M |
| Net Income | -565.38M | -614.30M | -275.83M | -267.42M | -254.52M | -142.63M |
Balance Sheet | ||||||
| Total Assets | 186.31M | 376.27M | 1.00B | 1.26B | 1.06B | 980.34M |
| Cash, Cash Equivalents and Short-Term Investments | 17.23M | 28.89M | 190.17M | 303.44M | 166.54M | 206.74M |
| Total Debt | 319.48M | 311.49M | 437.66M | 449.80M | 187.27M | 198.98M |
| Total Liabilities | 507.96M | 664.64M | 997.37M | 1.21B | 701.67M | 541.06M |
| Stockholders Equity | -327.46M | -293.84M | -1.11M | 42.44M | 349.46M | 432.64M |
Cash Flow | ||||||
| Free Cash Flow | -234.74M | -322.31M | -321.89M | -60.04M | -159.54M | -216.85M |
| Operating Cash Flow | -218.25M | -270.16M | -254.29M | 3.44M | -4.87M | -189.16M |
| Investing Cash Flow | 69.48M | -25.24M | 13.93M | -139.30M | -154.45M | -45.49M |
| Financing Cash Flow | 92.61M | 141.23M | 167.95M | 211.47M | 141.81M | 320.35M |
Maxeon Solar Technologies Technical Analysis
Neutral
2.98
Price Trends
3.21
Negative
3.48
Negative
3.43
Negative
Market Momentum
-0.05
Positive
48.94
Neutral
43.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAXN, the sentiment is Neutral. The current price of 2.98 is below the 20-day moving average (MA) of 3.17, below the 50-day MA of 3.21, and below the 200-day MA of 3.43, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 48.94 is Neutral, neither overbought nor oversold. The STOCH value of 43.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $4.45B | 24.05 | 20.31% | ― | 20.97% | 226.98% | |
61 Neutral | $1.43B | -3.08 | -17.96% | 10.19% | -34.29% | -732.90% | |
61 Neutral | $1.38B | -15.59 | -7.75% | ― | 35.75% | 37.97% | |
57 Neutral | $1.69B | 98.20 | 0.56% | ― | -4.46% | 1645.26% | |
49 Neutral | $1.87B | -3.18 | -78.09% | ― | -0.14% | 66.71% | |
39 Underperform | $53.22M | -0.01 | ― | ― | -54.68% | 63.56% |
* Technology Sector Average
MAXN
Maxeon Solar Technologies
3.10
-3.75
-54.74%
CSIQ
Canadian Solar
23.48
10.74
84.30%
ENPH
Enphase Energy
34.75
-34.91
-50.11%
JKS
JinkoSolar
28.13
3.57
14.53%
SEDG
SolarEdge Technologies
30.78
15.78
105.30%
ARRY
Array Technologies
9.50
2.97
45.48%
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.