Emeren Group (SOL) AI Stock Analysis

• Market Cap: $98.02M
• Dividend Yield: N/A
• Average Volume (3M): 291.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -19.52%
• EPS Growth: 64.89%
• Country: US
• Employees: 197
• Sector: Technology
• Sector Strength: 87
• Industry: Solar
• EPS (TTM): -0.03
• Shares Outstanding: 51,321,620
• 10 Day Avg. Volume: 539,898
• 30 Day Avg. Volume: 291,950
• PEG Ratio: 0.07
• Price to Book (P/B): 6.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.61
• Enterprise Value/Market Cap: 6.85
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 29.18
• Enterprise Value/Ebitda: 87.64
• 1Y Price Target: $2.00
• Price Target Upside: 4.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: $2.00 ▲(4.71%Upside)

The overall stock score of 57.5 reflects the significant challenges in financial performance, particularly with profitability and cash flow management. However, positive technical indicators and the strategic merger announcement provide some upside potential. The negative valuation score due to unprofitability weighs heavily on the overall assessment.

Positive Factors

Financial Performance

Gross margins improved to 43.8% from 31.2% in 2Q24 and 40.8% in 3Q23.

Revenue Potential

There is potential upside to the company's revenues, especially because of the DSA contracted backlog of $84M and an additional $100M under negotiations.

Negative Factors

Outlook

The company lowered its revenue outlook for 2024 to $97-102M from $150-160M previously.

Revenue Performance

The company's 4Q24 revenues were lower than expectations due to delays in government approvals for several projects in Europe.

Emeren Group Business Overview & Revenue Model

Company Description

Emeren Group (SOL) is a company operating within the renewable energy sector, specializing in the development and management of solar power projects. The company's core services include the designing, constructing, and operating of solar power plants, which are aimed at providing sustainable energy solutions to various clients, including utilities and commercial entities.

How the Company Makes Money

Emeren Group makes money primarily through the sale of electricity generated from its solar power plants. The company enters into power purchase agreements (PPAs) with utilities and other large energy consumers, ensuring a steady revenue stream over the long term. Additionally, Emeren Group may engage in the sale of solar power projects or interests in projects to investors, generating income through project development and capital recovery. The company might also benefit from government incentives and subsidies for renewable energy projects, further contributing to its earnings.

Emeren Group Financial Statement Overview

Summary

Emeren Group faces challenges with declining revenues and profitability, evident in the negative net profit margins and reduced revenue growth. While the balance sheet is robust with low leverage and a high equity ratio, the cash flow statement indicates significant issues in cash generation and management.

Income Statement

The company has experienced a negative revenue growth rate of -12.7% in the TTM compared to the previous year, reflecting a decline in sales. The gross profit margin stands at 25.8%, showing a decent ability to manage production costs. However, the net profit margin is negative at -12.7%, indicating the company is not profitable. The EBIT margin is low at 0.6%, with the EBITDA margin slightly better at 7.2%, suggesting operational challenges.

Balance Sheet

The balance sheet shows a strong equity base with an equity ratio of 75.5%, indicating financial stability and low leverage. The debt-to-equity ratio is 0.12, suggesting a conservative approach to debt usage. Return on equity is negative at -3.5%, reflecting the unprofitability and inefficiency in using equity to generate income.

Cash Flow

The company has a negative free cash flow growth rate of -55.8% in the TTM, highlighting challenges in generating cash. Operating cash flow to net income ratio is -0.36, suggesting difficulties in converting net income into cash. The free cash flow to net income ratio is -1.29, further emphasizing cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.62M	92.07M	105.64M	81.41M	79.66M	73.92M
Gross Profit	23.01M	24.12M	25.01M	24.48M	31.43M	16.69M
EBITDA	6.15M	-686.00K	7.13M	7.35M	19.92M	15.87M
Net Income	-5.01M	-12.48M	-3.19M	-4.67M	6.86M	2.78M
Balance Sheet
Total Assets	0.00	447.57M	478.35M	500.51M	529.27M	337.35M
Cash, Cash Equivalents and Short-Term Investments	0.00	50.01M	70.17M	107.11M	254.07M	40.59M
Total Debt	40.01M	63.39M	60.83M	70.59M	57.85M	115.58M
Total Liabilities	123.27M	109.55M	115.04M	100.99M	80.86M	153.62M
Stockholders Equity	341.65M	300.52M	325.31M	358.17M	404.01M	139.61M
Cash Flow
Free Cash Flow	-13.06M	-20.04M	-34.23M	-72.87M	-18.03M	-22.18M
Operating Cash Flow	2.50M	-4.29M	-23.49M	-35.25M	-6.42M	-13.93M
Investing Cash Flow	-14.96M	-15.47M	15.31M	-37.06M	19.39M	510.00K
Financing Cash Flow	15.58M	-5.85M	-25.26M	-70.25M	204.88M	30.18M

Emeren Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.91
• 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 SOL, the sentiment is Positive. The current price of 1.91 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.64, and above the 200-day MA of 1.87, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 62.80 is Neutral, neither overbought nor oversold. The STOCH value of 74.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOL.

Emeren Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZEO	59 Neutral	$137.56M	―	-9.81%	―	―	-1707.68%
SOL	58 Neutral	$98.02M	―	-1.63%	―	-19.52%	64.89%
Sector *	50 Neutral	AU$1.49B	1.70	-28.24%	3.29%	16.24%	-7.89%
SPWR	50 Neutral	$164.56M	―		―	227.76%	78.03%
SPWR	50 Neutral	$164.56M	―		―	227.76%	78.03%
TYGO	50 Neutral	$79.38M	―	-200.49%	―	-39.94%	-38.95%
TYGO	50 Neutral	$79.38M	―	-200.49%	―	-39.94%	-38.95%
MAXN	44 Neutral	$65.05M	―	307.38%	―	-54.68%	63.56%
MAXN	44 Neutral	$65.05M	―	307.38%	―	-54.68%	63.56%
SMXT	40 Underperform	$52.15M	―		―	-48.65%	13.64%

Emeren Group Corporate Events

Emeren Group Announces Merger with Shurya Vitra

On June 18, 2025, Emeren Group Ltd entered into a definitive Agreement and Plan of Merger with Shurya Vitra Ltd. and its subsidiary, Emeren Holdings Ltd., to become a wholly-owned subsidiary of Shurya Vitra. The merger, expected to close in the third quarter of 2025, will result in Emeren’s shares being de-listed from the New York Stock Exchange, transitioning the company to a privately held entity. This strategic move is aimed at enhancing Emeren’s operational capabilities and market positioning, with the board of directors and a special committee endorsing the merger as beneficial for shareholders.

The most recent analyst rating on (SOL) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Emeren Group stock, see the SOL Stock Forecast page.