Emeren Group (SOL) AI Stock Analysis

• Market Cap: $94.43M
• Dividend Yield: N/A
• Average Volume (3M): 181.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -33.44%
• EPS Growth: 81.60%
• Country: US
• Employees: 197
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): 0.03
• Shares Outstanding: 51,321,620
• 10 Day Avg. Volume: 157,092
• 30 Day Avg. Volume: 181,833
• 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: 1.49
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: -6.83
• 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: $2.00 ▲(6.95% Upside)

The overall stock score of 47 reflects significant financial challenges, particularly in revenue growth and cash flow management. The technical analysis indicates a neutral trend with weak momentum, while the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data did not impact the score.

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 solar energy company focused on the development, construction, and operation of solar power projects. With a robust presence in various markets, Emeren specializes in providing clean energy solutions through its portfolio of utility-scale solar energy plants. The company's core offerings include solar project development, long-term asset management, and energy production services, catering to both residential and commercial clients seeking sustainable energy alternatives.

How the Company Makes Money

Emeren Group generates revenue primarily through the sale of electricity generated from its solar power plants. The company enters into power purchase agreements (PPAs) with utility companies and large energy consumers, ensuring a steady income stream from long-term contracts. Additionally, Emeren earns revenue from the development and construction of solar projects, which includes upfront fees for project initiation and completion. The company's strategic partnerships with local governments and energy firms also facilitate access to financing and market opportunities, further enhancing its revenue potential. Furthermore, Emeren may benefit from government incentives and subsidies associated with renewable energy production, bolstering its financial performance.

Emeren Group Financial Statement Overview

Summary

Emeren Group faces significant financial challenges, particularly in revenue growth and cash flow management. The income statement and cash flow statement highlight operational inefficiencies and cash flow constraints, while the balance sheet shows a stable capital structure. The company must focus on improving operational efficiency, enhancing cash flow generation, and driving revenue growth to strengthen its financial position.

Income Statement

Emeren Group's income statement shows a concerning trend with declining revenue and profitability. The TTM data reveals a significant drop in revenue by 20.06% and a negative net profit margin of -5.77%. The gross profit margin has slightly improved to 29.65%, but the EBIT and EBITDA margins are deeply negative, indicating operational challenges. The company needs to address its declining revenue and improve operational efficiency to enhance profitability.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.27, indicating manageable leverage. However, the return on equity is negative at -1.28%, highlighting inefficiencies in generating returns for shareholders. The equity ratio stands at a healthy level, suggesting a stable capital structure. The company should focus on improving its return on equity to enhance shareholder value.

Cash Flow

Cash flow analysis reveals significant challenges, with a negative free cash flow growth rate of -41.70% in the TTM period. The operating cash flow to net income ratio is low at 0.11, indicating weak cash generation relative to earnings. The free cash flow to net income ratio is negative, reflecting cash flow difficulties. The company needs to enhance its cash flow management to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.44M	92.07M	105.64M	81.41M	79.66M	73.92M
Gross Profit	20.29M	24.12M	25.01M	24.48M	31.43M	16.69M
EBITDA	-20.58M	-686.00K	7.13M	7.35M	19.92M	15.87M
Net Income	-3.95M	-12.48M	-3.19M	-4.67M	6.86M	2.78M
Balance Sheet
Total Assets	442.87M	447.57M	478.35M	500.51M	529.27M	337.35M
Cash, Cash Equivalents and Short-Term Investments	48.36M	50.01M	70.17M	107.11M	254.07M	40.59M
Total Debt	83.20M	63.39M	60.83M	70.59M	57.85M	115.58M
Total Liabilities	122.58M	109.55M	115.04M	100.99M	80.86M	153.62M
Stockholders Equity	310.55M	300.52M	325.31M	347.29M	404.01M	139.61M
Cash Flow
Free Cash Flow	-8.71M	-20.04M	-34.23M	-72.87M	-18.03M	-22.18M
Operating Cash Flow	5.07M	-4.29M	-23.49M	-35.25M	-6.42M	-13.93M
Investing Cash Flow	-12.80M	-15.47M	15.31M	-37.06M	19.39M	510.00K
Financing Cash Flow	15.10M	-5.85M	-25.26M	-60.28M	204.88M	30.18M

Emeren Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.87
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1.87 is above the 20-day moving average (MA) of 1.86, above the 50-day MA of 1.87, and above the 200-day MA of 1.73, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 29.76 is Neutral, 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	58 Neutral	$117.81M	-2.18	-664.69%	―	39.53%	-7.16%
SOL	47 Neutral	$94.43M	―	-1.27%	―	-33.44%	81.60%
MAXN	41 Neutral	$59.14M	―	―	―	-54.68%	63.56%
ZEO	40 Underperform	$86.83M	―	―	―	86.59%	55.95%
SMXT	40 Underperform	$50.79M	-2.53	―	―	-27.65%	16.39%
VVPR	39 Underperform	$39.34M	-0.48	―	―	-51.35%	-103.78%

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.