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SolarEdge Technologies (SEDG)
NASDAQ:SEDG
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SolarEdge Technologies
(NASDAQ:SEDG)
Rating:53Neutral
Price Target:
$28.00
▼(-2.88%Downside)
Positive Factors
Financial Management
SolarEdge Technologies plans to use its available cash to pay down convertible debt, demonstrating a proactive approach to managing its financial obligations.
Market Demand
Market demand for inverters continued its recovery, with SolarEdge shipping significantly more units to customers, especially in North America.
Operational Efficiency
SolarEdge has focused on operational efficiency, reducing headcount and divesting from unprofitable assets, generating substantial cost savings.
Negative Factors
Legislative Impact
The US Senate's Tax-and-Spend Bill does not include the revival of the 48E 30% tax credit for solar companies, which is a setback for SolarEdge.
Market Challenges
SolarEdge is still struggling in the US and European markets, leading to a downgrade from HOLD to SELL.
Tax Credit Issues
US residential solar finance companies, including SolarEdge, face challenges as they can no longer sell tax credits to third parties.
SolarEdge Technologies (SEDG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.57B
Dividend YieldN/A
Average Volume (3M)6.27M
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth-57.89%
EPS Growth-559.87%
CountryUS
Employees3,961
SectorTechnology
Sector Strength93
IndustrySolar
Share Statistics
EPS (TTM)-1.14
Shares Outstanding59,044,230
10 Day Avg. Volume4,686,108
30 Day Avg. Volume6,271,202
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)2.65
Price to Sales (P/S)0.00
P/FCF Ratio-13.65
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit-2.43
Enterprise Value/Ebitda-0.36
Forecast
1Y Price Target
$17.30Price Target Upside-39.99% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering24
SolarEdge Technologies Business Overview & Revenue Model
Company DescriptionSolarEdge Technologies, Inc. is a global leader in smart energy technology, providing innovative solutions for the renewable energy sector. The company, headquartered in Israel, is renowned for its solar inverter systems, which maximize power generation while lowering the cost of energy produced by photovoltaic (PV) systems. SolarEdge's core products include inverters, power optimizers, and a cloud-based monitoring platform, which allow for enhanced energy efficiency and performance monitoring. The company serves a diverse range of markets, including residential, commercial, and industrial sectors worldwide.
How the Company Makes MoneySolarEdge Technologies generates revenue through the sale of its solar inverter systems, which are integral components of solar power setups. The company's primary revenue streams include the sale of power optimizers, inverters, and monitoring systems. These products are designed to enhance the efficiency and performance of solar photovoltaic systems, making them highly attractive to both residential and commercial customers. Additionally, SolarEdge leverages partnerships with solar installers, distributors, and EPC (engineering, procurement, and construction) firms to expand its market reach. The company's earnings are also bolstered by its global presence and its ability to capitalize on the growing demand for renewable energy solutions.
SolarEdge Technologies Key Performance Indicators (KPIs)
Any
Optimizers Shipped
Measures the quantity of optimizers distributed, showcasing the adoption of technology that enhances solar panel efficiency and the company's innovation in solar energy management.
Measures the quantity of optimizers distributed, showcasing the adoption of technology that enhances solar panel efficiency and the company's innovation in solar energy management.
Data provided by:
Main Street Data
Main Street DataSolarEdge Technologies Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 123.14%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments in revenue growth, market share gains, and innovation, against challenges posed by new tariffs and pricing pressures. While SolarEdge is making significant strides in innovation and market leadership, the impact of tariffs and pricing challenges could weigh on future performance.Q1-2025 Updates
Positive Updates
Revenue and Market Share Growth
SolarEdge delivered quarter-over-quarter and year-over-year revenue growth, expanded gross margins, and reduced operating expenses. They also achieved their second straight quarter of positive free cash flow.
US Manufacturing and Market Leadership
SolarEdge created nearly 2,000 jobs in the U.S., reaching a capacity of 70,000 inverters per quarter. They were recognized as the number one inverter supplier for rooftop solar installations in the U.S.
Progress in Europe
Sell-through in Europe was up 6% quarter-over-quarter, with Germany and the Netherlands showing particular strength.
Innovation and New Product Launches
SolarEdge is on track with the new Nexis platform and announced the SolarEdge ONE Controller for Residential compliance with Germany's regulation 14a, opening significant market opportunities.
Negative Updates
Impact of Tariffs
Newly imposed tariffs are expected to reduce gross margins by 2% in Q2 and 4-6% in the second half of the year. Tariffs may also impact cash flow, leading to an expectation of approximately breakeven free cash flow for the full year.
Challenges in the U.S. Market
Sell-through in North America was down 18% quarter-over-quarter due to seasonality, with additional uncertainties due to potential policy changes and tariffs.
Decline in ASP per Watt
ASP per Watt was down 17% from Q4, driven by lower pricing in Europe and a lower optimizer to inverter ratio.
Company Guidance
In the SolarEdge conference call for the first quarter of fiscal year 2025, the company provided a comprehensive update on its financial performance and strategic priorities. SolarEdge reported total revenues of $219.5 million for Q1, with non-GAAP revenues at $212.1 million. The company achieved quarter-over-quarter and year-over-year revenue growth, expanded gross margins, and reduced operating expenses, resulting in a positive free cash flow for the second consecutive quarter. U.S. revenues were $132.1 million, while European revenues were $47.4 million. In terms of shipments, SolarEdge delivered approximately 1.2 gigawatts of total shipments, split evenly between commercial & utility products and residential. The company also shipped 180 megawatt-hours of batteries, primarily to Europe. Guidance for Q2 includes revenue expectations between $265 million and $285 million, with a non-GAAP gross margin ranging from 8% to 12%, accounting for a 2% impact from newly imposed tariffs. Additionally, SolarEdge highlighted progress in ramping up U.S. manufacturing and optimizing its supply chain to mitigate tariff impacts, while emphasizing its focus on strategic priorities such as strengthening financials, regaining market share, accelerating innovation, and ramping up U.S. manufacturing.SolarEdge Technologies Financial Statement Overview
Summary
SolarEdge Technologies is facing significant financial challenges, including negative profitability and cash flow metrics, and a declining equity position. These issues highlight the urgent need for improved cost control and revenue growth to ensure sustainability.Income Statement
The income statement for SolarEdge Technologies shows a concerning trend, with a significant decrease in revenue from 2023 to 2024 and negative profitability metrics in 2024. Gross Profit Margin and Net Profit Margin were negative, indicating that the company is not only losing money but also struggling with cost control. Historical data shows fluctuating revenue with a notable decline in 2024, impacting gross and net profitability margins.35
Negative
Balance Sheet
The balance sheet reflects moderate financial stability with a Debt-to-Equity Ratio of 1.13 in 2024, suggesting moderate leverage. However, the company's equity has decreased over the years. Return on Equity (ROE) is negative in 2024, indicating inefficiency in using shareholders' equity to generate profit. The Equity Ratio is 0%, reflecting a potential concern in the asset structure.55
Neutral
Cash Flow
SolarEdge Technologies is experiencing negative Free Cash Flow and Operating Cash Flow in 2024, which suggests liquidity challenges. Despite previous years of positive operating cash flow, the recent trend shows a negative Free Cash Flow Growth Rate, highlighting potential issues in sustaining operations without external financing.40
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 901.46M | 2.98B | 3.11B | 1.96B | 1.46B |
| Gross Profit | -877.20M | 703.82M | 844.65M | 629.32M | 461.36M |
| EBITDA | -1.64B | 142.49M | 237.63M | 237.44M | 206.06M |
| Net Income | -1.81B | 34.33M | 93.78M | 169.17M | 140.32M |
Balance Sheet | |||||
| Total Assets | 2.63B | 4.59B | 4.27B | 2.90B | 2.44B |
| Cash, Cash Equivalents and Short-Term Investments | 585.89M | 860.04M | 1.02B | 697.82M | 1.03B |
| Total Debt | 757.35M | 735.30M | 732.27M | 713.68M | 662.61M |
| Total Liabilities | 1.97B | 2.18B | 2.09B | 1.59B | 1.35B |
| Stockholders Equity | 658.34M | 2.41B | 2.18B | 1.31B | 1.09B |
Cash Flow | |||||
| Free Cash Flow | -421.48M | -361.24M | -138.06M | 64.88M | 95.86M |
| Operating Cash Flow | -313.32M | -180.11M | 31.28M | 214.13M | 222.66M |
| Investing Cash Flow | 416.29M | -268.89M | -417.04M | -484.21M | -236.64M |
| Financing Cash Flow | -20.13M | -11.96M | 654.61M | -15.18M | 640.48M |
SolarEdge Technologies Technical Analysis
Positive
28.83
Price Trends
20.89
Positive
17.85
Positive
16.55
Positive
Market Momentum
2.13
Negative
65.16
Neutral
55.84
Neutral
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 28.83 is above the 20-day moving average (MA) of 24.00, above the 50-day MA of 20.89, and above the 200-day MA of 16.55, indicating a bullish trend. The MACD of 2.13 indicates Negative momentum. The RSI at 65.16 is Neutral, neither overbought nor oversold. The STOCH value of 55.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEDG.
SolarEdge Technologies Risk Analysis
SolarEdge Technologies disclosed 1 risk factors in its most recent earnings report. SolarEdge Technologies reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SolarEdge 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.19B | 36.82 | 17.13% | ― | -22.15% | -45.22% | |
67 Neutral | $922.81M | 49.91 | 3.43% | ― | -18.10% | -36.91% | |
63 Neutral | $34.61B | 5.36 | -11.67% | 1.95% | 5.33% | -20.62% | |
60 Neutral | $1.16B | 118.10 | -9.49% | 11.77% | -30.26% | -156.69% | |
57 Neutral | $1.08B | ― | -49.11% | ― | -21.31% | -593.57% | |
53 Neutral | $1.57B | ― | -121.50% | ― | -57.89% | -559.87% | |
53 Neutral | $820.41M | 20.05 | -0.39% | ― | -19.06% | -104.91% |
* Technology Sector Average
Performance Comparison
SEDG
SolarEdge Technologies
28.83
2.53
9.62%
CSIQ
Canadian Solar
12.90
-3.10
-19.37%
ENPH
Enphase Energy
39.66
-65.08
-62.13%
JKS
JinkoSolar
23.44
4.67
24.88%
ARRY
Array Technologies
6.82
-4.02
-37.08%
SHLS
Shoals Technologies Group
5.64
-1.00
-15.06%
SolarEdge Technologies Corporate Events
Executive/Board ChangesShareholder Meetings
SolarEdge Technologies Confirms Board and Auditor Appointments
Neutral
Jun 5, 2025
At the Annual Meeting on June 3, 2025, SolarEdge Technologies‘ stockholders voted on several key matters. The election of six board members was confirmed, and the appointment of Kost Forer Gabbay & Kasierer as auditors for 2025 was ratified. Additionally, the compensation for executive officers was approved. However, an amendment to limit the liability of certain officers was not passed due to Delaware law’s voting standards, despite receiving over 92% approval from voting power.
The most recent analyst rating on (SEDG) stock is a Sell with a $9.00 price target. To see the full list of analyst forecasts on SolarEdge Technologies stock, see the SEDG Stock Forecast page.
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.