Emeren Group (SOL) AI Stock Analysis

• Market Cap: $95.46M
• Dividend Yield: N/A
• Average Volume (3M): 138.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -33.25%
• EPS Growth: 81.55%
• Country: US
• Employees: 197
• Sector: Technology
• Sector Strength: 86
• Industry: Solar
• EPS (TTM): 0.03
• Shares Outstanding: 51,321,620
• 10 Day Avg. Volume: 120,510
• 30 Day Avg. Volume: 138,413
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 22.85
• 1Y Price Target: $2.00
• Price Target Upside: 7.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $2.00 ▲(7.53% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and profitability, and significant cash flow issues. Technical analysis provides a neutral outlook, while valuation concerns due to a negative P/E ratio further weigh down the score. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Strategic Merger

The merger with Shurya Vitra could lead to improved operational efficiencies and stronger market positioning, potentially driving long-term growth and competitiveness.

Leadership Change

The appointment of a seasoned leader in North America may enhance strategic execution and growth in a key market, leveraging his expertise in renewable energy.

Negative Factors

Declining Revenue

Declining revenue growth indicates challenges in maintaining sales momentum, which could impact long-term profitability and market share if not addressed.

Negative Cash Flow

Negative cash flow growth suggests difficulties in sustaining operations and funding new projects, potentially limiting future expansion and financial health.

Regulatory Challenges

Stricter tax credit requirements could increase project costs and complexity, impacting the financial viability of new solar projects and long-term growth.

Emeren Group Business Overview & Revenue Model

Company Description

Emeren Group Ltd is solar project developer, owner, and operator. The Company specializes in solar project lifecycle, construction management, and financing services.

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 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. Overall, the company needs to address operational inefficiencies and improve cash flow management to enhance financial performance.

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	464.92M	447.57M	478.35M	500.51M	529.27M	337.35M
Cash, Cash Equivalents and Short-Term Investments	52.88M	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	304.06M	300.52M	325.31M	347.29M	404.01M	139.61M
Cash Flow
Free Cash Flow	-13.06M	-20.04M	-34.23M	-72.87M	-18.03M	-22.18M
Operating Cash Flow	603.00K	-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	-60.28M	204.88M	30.18M

Emeren Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.86
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1.86 is below the 20-day moving average (MA) of 1.87, below the 50-day MA of 1.89, and above the 200-day MA of 1.75, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.96 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 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	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
SOL	49 Neutral	$95.46M	―	-1.27%	―	-33.25%	81.55%
TYGO	47 Neutral	$114.39M	―	-221.18%	―	52.31%	-2421.56%
ZEO	42 Neutral	$73.61M	―	-9.81%	―	86.59%	55.95%
SMXT	41 Neutral	$60.82M	―		―	-27.65%	16.39%
MAXN	41 Neutral	$66.57M	―	307.38%	―	-54.68%	63.56%
SPWR	40 Underperform	$128.82M	―		―	308.47%	76.84%

Emeren Group Corporate Events

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.