SolarEdge Technologies (SEDG) AI Stock Analysis

• Market Cap: $1.77B
• Dividend Yield: N/A
• Average Volume (3M): 4.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• 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: 3,497,228
• 30 Day Avg. Volume: 4,189,503
• 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: 1.17
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: -67.68
• Enterprise Value/Ebitda: -2.96
• 1Y Price Target: $32.43
• Price Target Upside: 9.82% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 18
• EPS Forecast (FY): -2.53
• Revenue Forecast (FY): $1.19B

• Rating: 49 Neutral
• Price Target: $36.00 ▲(21.91% 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. is a leading provider of intelligent energy solutions, primarily focused on the solar photovoltaic (PV) sector. Established in 2006, the company specializes in optimizing energy generation through its innovative inverter systems, which convert solar energy into usable electricity. SolarEdge's core products include solar inverters, power optimizers, and monitoring platforms, designed to enhance the efficiency and performance of solar energy systems. The company operates globally, serving residential, commercial, and utility-scale markets, and is committed to advancing sustainable energy solutions.

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: Negative
• Last Price: 29.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEDG, the sentiment is Negative. The current price of 29.53 is below the 20-day moving average (MA) of 33.01, below the 50-day MA of 36.02, and above the 200-day MA of 25.86, indicating a neutral trend. The MACD of -1.70 indicates Positive momentum. The RSI at 38.69 is Neutral, neither overbought nor oversold. The STOCH value of 28.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$1.48B	43.74	5.86%	―	2.68%	2.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ENPH	61 Neutral	$4.21B	21.71	20.31%	―	20.97%	226.98%
JKS	61 Neutral	$1.29B	-2.87	-17.96%	10.76%	-34.29%	-732.90%
CSIQ	57 Neutral	$1.52B	94.73	0.56%	―	-4.46%	1645.26%
ARRY	54 Neutral	$1.30B	-13.90	-7.75%	―	35.75%	37.97%
SEDG	49 Neutral	$1.77B	-2.95	-78.09%	―	-0.14%	66.71%

SolarEdge Technologies Corporate Events

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.