SolarEdge Technologies (SEDG) AI Stock Analysis

• Market Cap: $2.00B
• Dividend Yield: N/A
• Average Volume (3M): 4.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -0.14%
• EPS Growth: 66.71%
• Country: US
• Employees: 3,961
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -0.31
• Shares Outstanding: 59,800,053
• 10 Day Avg. Volume: 4,780,335
• 30 Day Avg. Volume: 4,459,802
• PEG Ratio: <0.01
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.86
• P/FCF Ratio: -1.84
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: -67.68
• Enterprise Value/Ebitda: -2.96
• 1Y Price Target: $32.35
• Price Target Upside: -2.24% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 19
• EPS Forecast (FY): -2.53
• Revenue Forecast (FY): $1.19B

• Rating: 49 Neutral
• Price Target: $36.00 ▲(8.79% Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining profitability and increased leverage. However, strong revenue growth and strategic initiatives highlighted in the earnings call provide some optimism for future performance. Technical indicators suggest a neutral to slightly positive short-term trend, but valuation concerns due to unprofitability weigh heavily on the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for SolarEdge's products, enhancing its market position and supporting long-term business expansion.

Market Share Gains

Regaining market leadership in the U.S. residential sector strengthens SolarEdge's competitive edge and solidifies its presence in a key market.

Strategic Collaboration

The collaboration with Infineon could drive innovation and open new markets, enhancing SolarEdge's technological capabilities and future growth potential.

Negative Factors

Financial Instability

Financial instability, marked by poor profitability and high leverage, poses risks to SolarEdge's long-term financial health and operational flexibility.

Cash Flow Challenges

Persistent cash flow issues could hinder SolarEdge's ability to invest in growth opportunities and manage financial obligations effectively.

Tariff Impact

Tariff impacts on gross margins could pressure profitability, affecting SolarEdge's competitive pricing and margin sustainability over time.

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 generates revenue primarily through the sale of its solar inverters, power optimizers, and energy storage systems, which are essential components of solar energy installations. The company's revenue model relies on direct sales to installers and distributors, as well as partnerships with solar project developers and engineering firms. Additionally, SolarEdge benefits from recurring revenue through its monitoring services, which provide ongoing performance insights for installed solar systems. Significant partnerships with leading solar manufacturers and the expansion into energy storage and electric vehicle (EV) charging solutions also contribute to its earnings, positioning the company to capitalize on the growing demand for renewable energy technologies.

SolarEdge Technologies Financial Statement Overview

Summary

SolarEdge Technologies is facing significant financial challenges, with declining profitability, increased leverage, and weak cash flow performance. The company needs to address operational inefficiencies and improve its financial stability to enhance shareholder value.

Income Statement

SolarEdge Technologies has experienced significant challenges in profitability, with negative gross and net profit margins in the TTM period. Despite a positive revenue growth rate of 8.43% in the TTM, the company has struggled with negative EBIT and EBITDA margins, indicating operational inefficiencies. Historical data shows a decline in profitability, with margins worsening over recent years.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.45 in the TTM, indicating increased leverage and potential financial risk. Return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio has decreased, pointing to a reduced proportion of equity financing.

Cash Flow

Cash flow analysis reveals a concerning trend with negative free cash flow growth and a low operating cash flow to net income ratio. Although the free cash flow to net income ratio is positive, the overall cash flow position is weak, highlighting liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	901.46M	2.98B	3.11B	1.96B	1.46B
Gross Profit	-30.48M	-877.20M	703.82M	844.65M	629.32M	461.36M
EBITDA	-697.55M	-1.64B	142.49M	231.28M	230.27M	198.69M
Net Income	-586.23M	-1.81B	34.33M	93.78M	169.17M	140.32M
Balance Sheet
Total Assets	2.23B	2.63B	4.59B	4.27B	2.90B	2.44B
Cash, Cash Equivalents and Short-Term Investments	498.58M	585.89M	860.04M	1.02B	697.82M	1.03B
Total Debt	415.81M	757.35M	732.05M	735.54M	713.83M	662.61M
Total Liabilities	1.75B	1.97B	2.18B	2.09B	1.59B	1.35B
Stockholders Equity	479.76M	658.34M	2.41B	2.18B	1.31B	1.09B
Cash Flow
Free Cash Flow	37.54M	-421.48M	-350.64M	-138.06M	64.88M	95.86M
Operating Cash Flow	63.97M	-313.32M	-180.11M	31.28M	214.13M	222.66M
Investing Cash Flow	469.31M	416.29M	-268.89M	-417.04M	-484.21M	-236.64M
Financing Cash Flow	-349.79M	-20.13M	-11.96M	654.61M	-15.18M	640.48M

SolarEdge Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEDG, the sentiment is Neutral. The current price of 33.09 is below the 20-day moving average (MA) of 37.42, below the 50-day MA of 37.00, and above the 200-day MA of 24.65, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 5.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEDG.

SolarEdge Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHLS	67 Neutral	$1.35B	37.64	5.86%	―	2.68%	2.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ENPH	61 Neutral	$3.52B	18.07	20.31%	―	20.97%	226.98%
JKS	61 Neutral	$1.36B	―	-17.96%	10.95%	-34.29%	-732.90%
CSIQ	54 Neutral	$1.77B	89.63	0.56%	―	-4.46%	1645.26%
ARRY	54 Neutral	$1.09B	―	-7.75%	―	35.75%	37.97%
SEDG	49 Neutral	$2.00B	―	-78.09%	―	-0.14%	66.71%

SolarEdge Technologies Corporate Events

SolarEdge Q3 2025 Earnings: Growth & Challenges

SolarEdge Technologies Inc. reported a strong performance in its Q3 2025 earnings call, showcasing significant revenue growth and market share gains in the U.S. The sentiment was largely positive, with highlights including operational efficiency improvements and a promising collaboration with Infineon. However, challenges such as a decline in international markets revenue and tariff impacts were also noted.

SolarEdge Reports Revenue Growth and Margin Improvement

SolarEdge Technologies Inc. is a global leader in smart energy technology, specializing in photovoltaic (PV) systems, storage, electric vehicle (EV) charging, batteries, and grid services solutions. The company is renowned for its innovative DC optimized inverter solutions that enhance power generation efficiency.

SolarEdge Board Member Nadav Zafrir Resigns

On September 29, 2025, Nadav Zafrir announced his resignation from the Board of Directors of SolarEdge Technologies, effective October 2, 2025. His departure was not due to any disagreements with the company. Subsequently, the Board decided to reduce its size to seven directors, effective the same date.

The most recent analyst rating on (SEDG) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on SolarEdge Technologies stock, see the SEDG Stock Forecast page.