Emeren Group (SOL) AI Stock Analysis

• Market Cap: $87.76M
• Dividend Yield: N/A
• Average Volume (3M): 147.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -29.98%
• EPS Growth: -13.97%
• Country: US
• Employees: 197
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): 0.03
• Shares Outstanding: 51,321,620
• 10 Day Avg. Volume: 157,118
• 30 Day Avg. Volume: 147,866
• PEG Ratio: -0.03
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -5.25
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: -6.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): $84.10M

• Rating: 48 Neutral
• Price Target: $2.00 ▲(14.29% Upside)

The overall stock score of 48 reflects significant challenges in financial performance, particularly in profitability and cash flow management. Technical analysis indicates a lack of strong momentum, and valuation metrics are weak due to a negative P/E ratio. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Stable Capital Structure

A stable capital structure with manageable leverage allows Emeren to maintain financial flexibility and withstand economic fluctuations.

Government Incentives

Government incentives for renewable energy can enhance Emeren's revenue potential and support long-term growth in the solar industry.

Improving Gross Profit Margin

An improving gross profit margin indicates better cost management and operational efficiency, which can lead to enhanced profitability over time.

Negative Factors

Declining Revenue

Declining revenue poses a risk to Emeren's growth prospects and financial stability, necessitating strategic initiatives to reverse the trend.

Negative Free Cash Flow Growth

Weak cash flow generation limits Emeren's ability to invest in growth opportunities and meet financial obligations, impacting long-term sustainability.

Potential Regulatory Challenges

Potential cuts in government funding for clean energy could hinder Emeren's project pipeline and growth in the renewable energy sector.

Emeren Group Business Overview & Revenue Model

Company Description

Emeren Group (SOL) is a global player in the renewable energy sector, specializing in the development, financing, and operation of solar power projects. The company focuses on delivering clean energy solutions, primarily through the construction and management of solar photovoltaic (PV) systems. Emeren operates in various geographical markets, leveraging local resources and expertise to provide sustainable energy solutions to both commercial and residential customers.

How the Company Makes Money

Emeren Group generates revenue primarily through the development and sale of solar power projects, which includes the construction and operation of solar PV plants. The company earns income by entering into power purchase agreements (PPAs) with utility companies and large energy consumers, ensuring a steady cash flow from the sale of electricity. Additional revenue streams include project financing arrangements, government incentives and tax credits related to renewable energy, and partnerships with other companies in the energy sector that facilitate project development. Strategic collaborations with local governments and energy providers also contribute to its financial stability and growth.

Emeren Group Financial Statement Overview

Summary

Emeren Group's financial statements reflect a company facing profitability challenges amidst moderate revenue growth. The balance sheet is relatively stable with low leverage, but cash flow volatility and negative profitability metrics pose risks. Continued focus on improving operational efficiency and cash flow management is essential for future stability and growth.

Income Statement

The income statement shows a mixed performance. The company has experienced a slight revenue growth of 4.06% TTM, but profitability metrics are concerning with negative EBIT and net profit margins. The gross profit margin is moderate at 33.95%, indicating some efficiency in cost management. However, the negative net profit margin of -7.47% highlights ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.13 TTM, suggesting conservative leverage. However, the return on equity is negative, indicating inefficiencies in generating returns on shareholders' equity. The equity ratio is not explicitly calculated, but the company's equity appears strong relative to its total assets.

Cash Flow

Cash flow analysis reveals significant volatility. The free cash flow growth rate is negative, and the free cash flow to net income ratio is -0.08 TTM, indicating challenges in converting earnings to cash. The operating cash flow to net income ratio is 0.25, suggesting some ability to generate cash from operations despite negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.23M	92.07M	105.64M	61.29M	79.66M	73.50M
Gross Profit	24.18M	24.12M	25.01M	15.34M	31.42M	16.69M
EBITDA	-20.64M	-686.00K	7.13M	7.35M	19.34M	15.87M
Net Income	-5.33M	-12.48M	-3.19M	-4.67M	6.86M	2.78M
Balance Sheet
Total Assets	449.50M	447.57M	478.35M	507.70M	537.95M	336.94M
Cash, Cash Equivalents and Short-Term Investments	84.64M	50.01M	70.17M	107.29M	254.38M	40.59M
Total Debt	88.77M	63.39M	60.83M	70.55M	57.85M	115.58M
Total Liabilities	125.97M	109.55M	115.04M	119.06M	89.55M	153.68M
Stockholders Equity	310.38M	300.52M	325.31M	347.29M	404.00M	139.14M
Cash Flow
Free Cash Flow	33.73M	-20.04M	-34.23M	-72.87M	-18.03M	-18.28M
Operating Cash Flow	44.86M	-4.29M	-23.49M	-35.25M	-6.42M	-10.03M
Investing Cash Flow	-9.95M	-15.47M	15.31M	-37.06M	19.39M	-3.39M
Financing Cash Flow	22.07M	-5.85M	-25.26M	-60.28M	204.88M	30.18M

Emeren Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.75
• 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 SOL, the sentiment is Negative. The current price of 1.75 is below the 20-day moving average (MA) of 1.83, below the 50-day MA of 1.85, and above the 200-day MA of 1.73, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 23.66 is Positive, neither overbought nor oversold. The STOCH value of 6.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOL.

Emeren Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FTCI	55 Neutral	$132.37M	―	-664.69%	―	39.53%	-7.16%
SOL	48 Neutral	$87.76M	―	-2.90%	―	-29.98%	-13.97%
ZEO	46 Neutral	$86.29M	―	―	―	27.17%	57.71%
SMXT	40 Underperform	$50.50M	―	―	―	76.60%	70.94%
VVPR	39 Underperform	$39.34M	-0.48	―	―	-51.35%	-103.78%
MAXN	39 Underperform	$48.66M	―	―	―	-54.68%	63.56%

Emeren Group Corporate Events

Emeren Group Announces Merger Agreement with Shurya Vitra Ltd.

On June 18, 2025, Emeren Group Ltd entered into a Merger Agreement with Shurya Vitra Ltd. and Emeren Holdings Ltd., aiming to merge Emeren Holdings with Emeren Group, making it a wholly owned subsidiary of Shurya Vitra. The merger is supported by key stakeholders, representing 39.6% of the company’s voting power, and is considered fair and in the best interests of the company by an independent Special Committee. The merger proposal, along with related compensation and adjournment proposals, will be voted on at a shareholders meeting scheduled for December 9, 2025.

The most recent analyst rating on (SOL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Emeren Group stock, see the SOL Stock Forecast page.

Emeren Group Reschedules Extraordinary General Meeting

Emeren Group Ltd announced the cancellation and rescheduling of its extraordinary general meeting initially set for October 21, 2025, due to the need for further amendments to filings under review by the U.S. Securities and Exchange Commission. The company plans to announce a new meeting date to consider the Merger Proposal involving Shurya Vitra Ltd. and Emeren Holdings Ltd., ensuring compliance with relevant laws and regulations.

The most recent analyst rating on (SOL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Emeren Group stock, see the SOL Stock Forecast page.

Emeren Group Announces Merger Agreement with Shurya Vitra

On June 18, 2025, Emeren Group Ltd entered into a Merger Agreement with Shurya Vitra Ltd and Emeren Holdings Ltd, aiming to merge Emeren Holdings with Emeren Group, with the latter continuing as the surviving entity. An extraordinary general meeting (EGM) is scheduled for October 21, 2025, to vote on the merger, which, if approved, will transition Emeren into a privately held company, delisting its shares from the New York Stock Exchange. The board of directors recommends shareholders vote in favor of the merger, which could significantly impact the company’s market presence and shareholder structure.

The most recent analyst rating on (SOL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Emeren Group stock, see the SOL Stock Forecast page.

Emeren Group Delays Q2 2025 10-Q Filing

Emeren Group Ltd has announced a delay in filing its Form 10-Q (Quarter Report) for the financial period ending June 30, 2025. The delay is primarily due to challenges in compiling and processing necessary information for the report. The company anticipates filing the delayed report within five calendar days following the original due date. Financially, the company expects to report $12.9 million in revenue and a $27.6 million net loss for the quarter, influenced by an impairment charge and a decrease in revenue from solar power projects, offset by a foreign exchange gain. Emeren Group is committed to maintaining compliance, as indicated by the signature of Ke Chen, the Chief Financial Officer.

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.