SolarMax Technology, Inc. (SMXT) AI Stock Analysis

• Market Cap: $45.15M
• Dividend Yield: N/A
• Average Volume (3M): 190.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: 76.60%
• EPS Growth: 70.94%
• Country: US
• Employees: 76
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -0.04
• Shares Outstanding: 54,302,950
• 10 Day Avg. Volume: 76,364
• 30 Day Avg. Volume: 190,372
• PEG Ratio: <0.01
• Price to Book (P/B): -4.76
• Price to Sales (P/S): 3.13
• P/FCF Ratio: -7.87
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 18.45
• Enterprise Value/Ebitda: 0.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $1.00 ▲(23.46% Upside)

SolarMax Technology, Inc. faces significant financial challenges, including high leverage and negative equity, which are major concerns. The technical indicators suggest a bearish trend, and the valuation is unattractive due to negative earnings. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust sales momentum, suggesting that the company is expanding its market reach and product adoption, which is a positive sign for long-term business sustainability.

Product Diversification

Product diversification helps SolarMax mitigate risks associated with reliance on a single product line, enhancing its ability to capture various market segments and adapt to changing customer needs.

Strategic Partnerships

Strategic partnerships can provide access to new customer segments and funding for large-scale projects, supporting long-term growth and competitive positioning in the renewable energy sector.

Negative Factors

High Leverage

High leverage poses substantial risks to financial stability, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Profitability

Negative profitability indicates operational inefficiencies or high costs, which can hinder long-term financial health and limit the company's ability to reinvest in business expansion.

Cash Flow Challenges

Declining free cash flow growth suggests potential liquidity constraints, which can impact the company's ability to fund operations and invest in future growth, posing challenges to financial sustainability.

SolarMax Technology, Inc. Business Overview & Revenue Model

Company Description

SolarMax Technology, Inc. (SMXT) is a leading provider of solar energy solutions, specializing in the design, manufacture, and installation of photovoltaic systems for residential, commercial, and industrial clients. The company operates in the renewable energy sector, focusing on harnessing solar power to deliver sustainable energy solutions. SolarMax offers a diverse range of products, including solar panels, inverters, battery storage systems, and energy management software, aiming to enhance energy efficiency and reduce carbon footprints.

How the Company Makes Money

SolarMax Technology generates revenue primarily through the sale of solar energy systems and related components. The company's key revenue streams include the direct sale of solar panels and inverters, installation services for residential and commercial projects, and ongoing maintenance contracts. Additionally, SolarMax may benefit from government incentives and subsidies aimed at promoting renewable energy adoption. Strategic partnerships with suppliers and local governments can further enhance its market presence and contribute to earnings, as they may provide access to new customer segments and funding for large-scale projects.

SolarMax Technology, Inc. Financial Statement Overview

Summary

SolarMax Technology, Inc. shows strong revenue growth but faces significant challenges in profitability and financial stability. The high leverage and negative equity position pose substantial risks, while cash flow management remains a critical area to address.

Income Statement

SolarMax Technology, Inc. has shown significant revenue growth in the TTM period with a 91.32% increase, indicating strong sales momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins, suggesting operational inefficiencies or high costs. The gross profit margin is relatively low at 15.86%, indicating limited pricing power or high cost of goods sold.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative stockholders' equity and a high debt-to-equity ratio of -2.18, indicating high leverage and potential solvency risks. The return on equity is positive, but this is due to the negative equity, which distorts the metric. The equity ratio is negative, reflecting a precarious financial position.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth, highlighting potential liquidity issues. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover its net income losses. However, the free cash flow to net income ratio is stable at 1.0, suggesting that cash flow management is consistent despite profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.85M	22.99M	54.14M	44.72M	37.74M	131.58M
Gross Profit	3.91M	2.31M	11.15M	7.48M	5.95M	16.45M
EBITDA	1.19B	-30.19M	3.56M	-3.63M	-1.26M	7.13M
Net Income	-9.36M	-34.96M	434.79K	-6.87M	-3.32M	974.05K
Balance Sheet
Total Assets	58.66M	38.63M	48.66M	61.48M	72.02M	96.14M
Cash, Cash Equivalents and Short-Term Investments	11.43M	7.12M	2.54M	3.82M	13.08M	21.74M
Total Debt	28.29M	34.84M	41.88M	47.98M	48.53M	57.47M
Total Liabilities	70.44M	53.71M	64.54M	77.69M	80.46M	101.57M
Stockholders Equity	-11.78M	-15.08M	-15.89M	-16.21M	-8.45M	-5.22M
Cash Flow
Free Cash Flow	1.71M	-9.13M	3.79M	-2.06M	-5.35M	-23.27M
Operating Cash Flow	1.71M	-9.13M	3.81M	-1.97M	-5.35M	-23.17M
Investing Cash Flow	2.01M	-6.32M	-6.55K	-280.52K	2.03M	11.22M
Financing Cash Flow	935.60K	13.31M	-5.05M	-7.50M	-5.07M	23.50M

SolarMax Technology, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMXT, the sentiment is Negative. The current price of 0.81 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.97, and below the 200-day MA of 1.08, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 29.22 is Positive, neither overbought nor oversold. The STOCH value of 4.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMXT.

SolarMax Technology, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPRU	62 Neutral	$92.48M	-3.62	-18.23%	―	37.59%	72.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TURB	54 Neutral	$9.84M	-4.59	-99.17%	―	-5.74%	54.80%
BEEM	40 Neutral	$32.54M	-0.83	-80.33%	―	-54.56%	-133.60%
SMXT	40 Underperform	$45.15M	-4.06	―	―	76.60%	70.94%
VVPR	39 Underperform	$40.09M	-0.44	―	―	-51.35%	-103.78%
MAXN	39 Underperform	$55.93M	-0.02	―	―	-54.68%	63.56%

SolarMax Technology, Inc. Corporate Events

SolarMax Technology Holds Annual Stockholders Meeting

SolarMax Technology, Inc. held its Annual Meeting of Stockholders on November 10, 2025. During the meeting, stockholders elected five directors to serve until the 2026 Annual Meeting and ratified the appointment of CBIZ, CPAs P.C. as the independent registered public accounting firm for the year ending December 31, 2025.

SolarMax Technology Approves New Share Issuance

In June and July 2025, SolarMax Technology, Inc.‘s board of directors approved the issuance of 5,712,402 shares of common stock to five investors at prices between $0.74 and $0.83 per share, which was 75% of the market price at the time of investment. This issuance, which exceeded 5% of the company’s outstanding shares by July 31, 2025, was exempt from registration under the Securities Act and raised $4,380,000 for working capital.