SolarEdge Technologies (SEDG) AI Stock Analysis

• Market Cap: $2.71B
• Dividend Yield: N/A
• Average Volume (3M): 3.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -0.14%
• EPS Growth: 66.71%
• Country: US
• Employees: 3,961
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -0.14
• Shares Outstanding: 60,366,290
• 10 Day Avg. Volume: 3,020,855
• 30 Day Avg. Volume: 3,615,318
• PEG Ratio: 0.05
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 21.36
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 14.89
• Enterprise Value/Ebitda: -10.81
• 1Y Price Target: $34.94
• Price Target Upside: -22.15% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 19
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): $1.39B

• Rating: 60 Neutral
• Price Target: $47.00 ▲(4.72% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score reflects a company in a credible operational and cash-flow recovery (improving margins, positive free cash flow, and constructive 2026 guidance), partially offset by still-weak underlying profitability and a pressured equity base. Technicals are moderately supportive, while valuation remains constrained by ongoing losses and no dividend yield.

Positive Factors

Free Cash Flow Recovery

A sharp swing to positive FCF demonstrates improved cash generation and operational discipline. Durable cash conversion reduces reliance on external financing, funds product and manufacturing ramps, and provides a buffer to support margin recovery and strategic investments over the next 2–6 months.

Margin & Revenue Turnaround

Five consecutive quarters of gross margin expansion alongside a strong revenue rebound indicate structural improvement in pricing, product mix and cost control. Sustained margin gains are central to reaching operating profitability and make the recovery more resilient to cyclical headwinds.

Product & U.S. Market Positioning

New platform (Nexis), Single SKU simplification and U.S. manufacturing ramp strengthen competitive moat: easier installs, better serviceability, and local production that supports higher margins and market share gains in the strategically important U.S. residential/storage market.

Negative Factors

Persistent Losses

Despite operational progress, the company remains materially loss‑making. Ongoing negative net margins drain equity and limit reinvestment capacity; until EBIT/profitability is sustained, recovery remains contingent on continued revenue and margin execution.

Eroded Equity Cushion

A sharply reduced equity base increases vulnerability to future losses or demand shocks. Although debt declined, the thinner equity cushion constrains financial flexibility and raises solvency risk if the company backslides before profitability is secured.

Multi‑year Execution Risk (AI Data Center/SST)

The large AI data‑center opportunity hinges on complex technical development, partner qualification and long pilot cycles. Revenue timing is multi‑year, creating execution risk and capital allocation uncertainty that could distract from near‑term margin and cash objectives.

SolarEdge Technologies Business Overview & Revenue Model

Company Description

SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. It operates through five segments: Solar, Energy Storage, e-Mobility, Critical Power, and Automation Machines. The company offers inverters, power optimizers, communication devices, and smart energy management solutions used in residential, commercial, and small utility-scale solar installations; and a cloud-based monitoring platform that collects and processes information from the power optimizers and inverters, as well as monitors and manages the solar PV system. It also provides residential, commercial, and large scale PV, energy storage and backup, electric vehicle charging, and home energy management solutions, as well as grid services; and e-Mobility, automation machines, lithium-ion cells and battery packs, and uninterrupted power supply solutions, as well as virtual power plants, which helps to manage the load on the grid and grid stability. In addition, the company offers pre-sales support, ongoing trainings, and technical support and after installation services. The company sells its products to the providers of solar PV systems; and solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel.

How the Company Makes Money

SolarEdge primarily makes money by selling hardware and software solutions used in solar PV and broader energy systems, with revenue recognized largely from product sales through a network of solar distributors, installers, and equipment partners. The company’s key revenue stream is its DC-optimized inverter solution, where sales typically include power optimizers installed on individual PV modules plus SolarEdge inverters and associated communications components; this bundle drives revenue per system deployed. A second revenue stream comes from monitoring and software-enabled services that accompany its installed base (e.g., platform access and system management functionality), though specific monetization details (such as standalone subscription pricing) are not available in this response and are therefore null. Additional revenue is generated from sales of adjacent products such as battery/energy storage solutions, EV charging hardware, and other smart energy devices that integrate with its inverter and monitoring ecosystem. Earnings are influenced by demand for residential and commercial solar deployments, channel relationships with distributors and installers, geographic mix and regulatory/incentive environments, and the company’s ability to maintain product margins amid component costs and pricing dynamics. Significant partnerships and customer relationships generally take the form of distribution agreements, installer networks, and integration relationships with module, storage, and charging ecosystems; specific named partnership terms and revenue contributions are not available in this response and are therefore null.

SolarEdge Technologies Financial Statement Overview

Summary

Results show stabilization off a severe 2024 downturn: 2025 revenue rebounded and gross margin turned positive again, debt was reduced, and operating/free cash flow swung to positive. However, profitability remains meaningfully negative and the equity base has been pressured, keeping overall financial quality mixed despite the improving trajectory.

Income Statement

Profitability has deteriorated sharply versus the company’s earlier profile. After positive margins in 2020–2023, 2024 saw a severe collapse with negative gross profit and very large operating and net losses, and while 2025 revenue rebounded (+16.1% YoY) and gross margin turned positive again (~16.6%), the business remained meaningfully loss-making (net margin ~-34%). Overall, revenue is volatile and earnings power is currently weak despite signs of stabilization off the 2024 trough.

Balance Sheet

Leverage and equity resilience are mixed. Total debt has come down materially from 2024 to 2025 ($757M to $423M) and debt is now roughly in line with equity ($427M), which is an improvement. However, equity has fallen dramatically from 2022–2023 levels, reflecting the recent heavy losses, and returns to shareholders are deeply negative in 2024. The balance sheet is no longer highly levered, but the reduced equity cushion increases risk if losses persist.

Cash Flow

Cash generation improved notably in 2025, with positive operating cash flow ($104M) and positive free cash flow ($81M), a sharp swing from 2024’s large cash burn. That said, cash flow has been inconsistent over the cycle (negative operating cash flow in 2023–2024 and negative free cash flow in 2022–2024), suggesting working-capital and/or profitability sensitivity. Current momentum is constructive, but durability remains a key watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.18B	901.46M	2.98B	3.11B	1.96B
Gross Profit	181.59M	-877.20M	703.82M	844.65M	629.32M
EBITDA	-286.82M	-1.64B	142.49M	231.28M	230.27M
Net Income	-405.45M	-1.81B	34.33M	93.78M	169.17M
Balance Sheet
Total Assets	2.18B	2.63B	4.59B	4.27B	2.90B
Cash, Cash Equivalents and Short-Term Investments	577.94M	585.89M	860.04M	1.02B	697.82M
Total Debt	423.42M	757.35M	732.05M	735.54M	713.83M
Total Liabilities	1.75B	1.97B	2.18B	2.09B	1.59B
Stockholders Equity	427.46M	658.34M	2.41B	2.18B	1.31B
Cash Flow
Free Cash Flow	80.79M	-421.48M	-350.64M	-138.06M	64.88M
Operating Cash Flow	104.26M	-313.32M	-180.11M	31.28M	214.13M
Investing Cash Flow	379.88M	416.29M	-268.89M	-417.04M	-484.21M
Financing Cash Flow	-348.89M	-20.13M	-11.96M	654.61M	-15.18M

SolarEdge Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEDG, the sentiment is Positive. The current price of 44.88 is above the 20-day moving average (MA) of 38.42, above the 50-day MA of 35.76, and above the 200-day MA of 31.87, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 63.47 is Neutral, neither overbought nor oversold. The STOCH value of 97.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEDG.

SolarEdge Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENPH	62 Neutral	$5.67B	27.11	18.25%	―	20.97%	226.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JKS	61 Neutral	$1.22B	-0.75	-18.83%	10.19%	-34.29%	-732.90%
SEDG	60 Neutral	$2.71B	―	-80.50%	―	-0.14%	66.71%
SHLS	58 Neutral	$996.33M	42.34	5.78%	―	2.68%	2.90%
ARRY	52 Neutral	$1.05B	-2.42	-15.43%	―	35.75%	37.97%
CSIQ	45 Neutral	$1.24B	24.53	0.57%	―	-4.46%	1645.26%

SolarEdge Technologies Corporate Events

SolarEdge CFO Resignation and Guidance Reaffirmation Announced

SolarEdge Technologies announced on March 10, 2026, that Chief Financial Officer Asaf Alperovitz will resign effective June 9, 2026, as he departs to take a CFO role at a public company outside the solar industry. The board has begun a search for his successor, with Alperovitz staying on through early June to support operations and a smooth leadership transition.

Chief executive Shuki Nir emphasized Alperovitz’s role in strengthening SolarEdge’s financial foundation and advancing the company toward sustained profitability in 2026, underscoring management’s focus on profitable growth. The company stated that the departure is unrelated to any financial or accounting issues or disagreements and, notably, reaffirmed its first-quarter 2026 financial guidance originally issued on February 18, 2026, aiming to reassure investors about operational and financial continuity.

The most recent analyst rating on (SEDG) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on SolarEdge Technologies stock, see the SEDG Stock Forecast page.