SolarMax Technology, Inc. (SMXT) AI Stock Analysis

• Market Cap: $37.35M
• Dividend Yield: N/A
• Average Volume (3M): 190.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• 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: 1.64
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 15.67
• Enterprise Value/Ebitda: 0.05
• 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: 47 Neutral
• Price Target: $0.81 ▼(-20.88% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is primarily held back by weak financial quality—ongoing losses, low margins, and especially negative equity with high leverage—despite strong revenue growth. Technicals provide some support with improving short-to-mid-term momentum, while valuation remains constrained by negative earnings and no stated dividend yield.

Positive Factors

Revenue Growth

A near-doubling of TTM revenue indicates the company is gaining customers or expanding shipments rapidly. Sustained top-line momentum provides a larger revenue base to leverage fixed costs, supports product-market fit, and enables reinvestment in sales, R&D, and scale economics.

Cash Flow Consistency

Maintaining a stable free cash flow to net income ratio despite losses suggests disciplined cash management. It implies the business can convert reported losses into manageable cash outflows, supporting runway and operational continuity while management works toward breaking even.

Successful Capital Raise

Raising $4.38M via share issuance materially improved near-term liquidity and funds working capital needs. Access to capital demonstrates investor willingness to fund operations and provides a bridge to execute growth initiatives or restructure operations without immediate operational cutbacks.

Negative Factors

Negative Equity / High Leverage

Negative equity and extreme leverage reflect a structurally weakened balance sheet that limits financing alternatives, raises default and covenant risk, and can increase cost of capital. This fragile capital structure constrains strategic flexibility and long-term investment capacity.

Persistent Unprofitability and Low Margins

Consistently negative operating and net margins with low gross margin indicate structural cost or pricing issues. Without material margin improvement, revenue growth will struggle to translate into sustainable profits, limiting free cash flow generation and impairing long-term viability.

Operating Cash Flow Weakness

Declining FCF growth and negative operating cash flow relative to net income show the company is not converting sales into operating cash. This creates recurring liquidity pressure, making the business reliant on external funding and exposing it to capital-market cycles and refinancing risk.

SolarMax Technology, Inc. Business Overview & Revenue Model

Company Description

SolarMax Technology, Inc., through its subsidiaries, operates as an integrated solar energy company in the United States and China. The company engages in the sale and installation of photovoltaic and battery backup systems; financing the sale of photovoltaic and battery backup systems; sale of LED systems; and identifying and procuring solar farm projects for resale to third parties, as well as provision of engineering, procuring, and construction services for solar farm projects. It serves residential, commercial, and government customers. The Company was incorporated in 2008 and is based in Riverside, California.

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

Strong TTM revenue growth (+91.32%) is outweighed by weak profitability (negative net profit and EBIT margins), low gross margin (15.86%), and a stressed balance sheet with negative equity and high leverage, raising solvency risk. Cash flow signals potential liquidity strain with declining free cash flow growth and negative operating cash flow-to-net income.

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	Mar 2025	Mar 2024	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: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 1.02 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.82, and above the 200-day MA of 1.01, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 18.24 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	$76.85M	-3.08	-18.23%	―	37.59%	72.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TURB	54 Neutral	$7.60M	-3.72	-99.17%	―	-5.74%	54.80%
SMXT	47 Neutral	$37.35M	-3.44	―	―	76.60%	70.94%
VVPR	46 Neutral	$43.82M	-0.40	―	―	-51.35%	-103.78%
BEEM	42 Neutral	$28.92M	-0.80	-80.33%	―	-54.56%	-133.60%
MAXN	42 Neutral	$43.26M	-0.01	―	―	-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.

The most recent analyst rating on (SMXT) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on SolarMax Technology, Inc. stock, see the SMXT Stock Forecast page.

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.

The most recent analyst rating on (SMXT) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on SolarMax Technology, Inc. stock, see the SMXT Stock Forecast page.