SolarEdge Technologies (SEDG) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 6.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: -57.89%
• EPS Growth: -559.87%
• Country: US
• Employees: 3,961
• Sector: Technology
• Sector Strength: 86
• Industry: Solar
• EPS (TTM): -1.14
• Shares Outstanding: 59,044,230
• 10 Day Avg. Volume: 9,664,958
• 30 Day Avg. Volume: 6,110,987
• PEG Ratio: -3.50
• Price to Book (P/B): 7.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -113.03
• Enterprise Value/Market Cap: 13.30
• Enterprise Value/Revenue: 3.55
• Enterprise Value/Gross Profit: -19.34
• Enterprise Value/Ebitda: -2.84
• 1Y Price Target: $15.04
• Price Target Upside: -26.27% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 22

• Rating: 51 Neutral
• Price Target: $19.00 ▼(-6.86%Downside)

SolarEdge Technologies' overall score is primarily impacted by financial challenges and poor valuation metrics. Technical indicators provide some neutral to positive signals, while the earnings call offers optimism through revenue growth and strategic initiatives. However, tariffs and market pressures pose risks.

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.

Revenue Guidance

2Q revenue guidance of $265MM–285MM was ahead of consensus expectations of $246MM.

Negative Factors

Financial Performance

Despite the stock's recent rise, SolarEdge Technologies reported negative earnings and a significant EBIT loss forecast, which raises concerns about the company's core business performance.

Market Challenges

SolarEdge is still struggling in the US and European markets, leading to a downgrade from HOLD to SELL.

Tax Credits

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.

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 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 Financial Statement Overview

Summary

SolarEdge Technologies faces significant financial challenges with negative profitability and cash flow metrics. The income statement signals a concerning trend with declining revenue and negative margins. The balance sheet shows moderate leverage but declining equity, and cash flow is negative, indicating liquidity issues.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	916.54M	901.46M	2.98B	3.11B	1.96B	1.46B
Gross Profit	-804.27M	-877.20M	703.82M	844.65M	629.32M	461.36M
EBITDA	-1.66B	-1.64B	142.49M	237.63M	237.44M	206.06M
Net Income	-1.72B	-1.81B	34.33M	93.78M	169.17M	140.32M
Balance Sheet
Total Assets	535.49M	2.63B	4.59B	4.27B	2.90B	2.44B
Cash, Cash Equivalents and Short-Term Investments	651.63M	585.89M	860.04M	1.02B	697.82M	1.03B
Total Debt	743.05M	757.35M	735.30M	732.27M	713.68M	662.61M
Total Liabilities	956.53M	1.97B	2.18B	2.09B	1.59B	1.35B
Stockholders Equity	594.21M	658.34M	2.41B	2.18B	1.31B	1.09B
Cash Flow
Free Cash Flow	-117.03M	-421.48M	-361.24M	-138.06M	64.88M	95.86M
Operating Cash Flow	-62.48M	-313.32M	-180.11M	31.28M	214.13M	222.66M
Investing Cash Flow	334.88M	416.29M	-268.89M	-417.04M	-484.21M	-236.64M
Financing Cash Flow	30.86M	-20.13M	-11.96M	654.61M	-15.18M	640.48M

SolarEdge Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.40
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 20.4 is above the 20-day moving average (MA) of 19.06, above the 50-day MA of 17.17, and above the 200-day MA of 16.19, indicating a bullish trend. The MACD of 0.51 indicates Positive momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 66.54 is Neutral, 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	71 Outperform	$5.36B	38.03	17.13%	―	-22.15%	-45.22%
SHLS	70 Outperform	$790.74M	41.86	3.43%	―	-18.10%	-36.91%
JKS	59 Neutral	$1.08B	118.10	-9.49%	6.84%	-30.26%	-156.69%
ARRY	55 Neutral	$982.40M	―	-49.11%	―	-21.31%	-593.57%
SEDG	51 Neutral	$1.17B	―	-121.50%	―	-57.89%	-559.87%
Sector *	49 Neutral	C$2.90B	2.14	-80.91%	2.95%	6.62%	-18.96%
CSIQ	49 Neutral	$758.80M	20.05	-0.39%	―	-19.06%	-104.91%

SolarEdge Technologies Corporate Events

SolarEdge Technologies Confirms Board and Auditor Appointments

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.

SolarEdge Technologies Announces Board Member Resignations

On April 8, 2025, Marcel Gani resigned from SolarEdge Technologies‘ Board of Directors, and Dirk Hoke announced he would not seek re-election, stepping down after the 2025 Annual Meeting. Their departures were not due to disagreements with the company, and the board size was adjusted accordingly.