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Emeren Group Ltd (SOL)
:SOL
US Market

Emeren Group (SOL) AI Stock Analysis

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SOL

Emeren Group

(SOL)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
Price Target:
$2.00
▲(14.29% Upside)
Emeren Group's overall stock score reflects a mix of challenges and opportunities. The most significant factor is the financial performance, which is hindered by negative profitability and cash flow volatility. Technical analysis shows some positive trends, but caution is advised due to potential overbought conditions. The merger approval is a positive strategic development, offering potential for future growth.

Emeren Group (SOL) vs. SPDR S&P 500 ETF (SPY)

Emeren Group Business Overview & Revenue Model

Company DescriptionEmeren 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 MoneyEmeren 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 Earnings Call Summary

Earnings Call Date:Mar 13, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Mar 13, 2026
Earnings Call Sentiment Neutral
The earnings call highlights a mixed performance. While there are strong points such as a significant increase in cash position, strategic project monetization, and expanding energy storage initiatives, there are also notable challenges including a year-over-year revenue decline, increased net loss, and project delays impacting revenue recognition.
Q4-2024 Updates
Positive Updates
Strong Cash Position
Ended the year with $50 million in cash, up 40% sequentially from $35.8 million in Q3 2024, reinforcing strong liquidity.
Significant Revenue Increase in Q4
Revenue surged 169% quarter by quarter, driven by successful project monetization.
Strategic Project Monetization
Successfully closed several strategic transactions in Europe, US, and China, solidifying leadership in renewable energy monetization.
Positive Operating Cash Flow
Generated $10.4 million in operating cash flow and over $5 million in free cash flow in Q4.
Expanding Energy Storage Initiatives
Executed a 462-megawatt DSA for battery energy storage systems in Italy.
Negative Updates
Revenue Decline Year Over Year
Delivered $34.6 million in revenue in Q4, down 23% year over year, primarily due to project delays pending government approvals.
Net Loss Increase
Net loss attributable to Emeren Group Ltd. common shareholders was $11.8 million, compared to a net loss of $2 million in Q4 2023.
Impact of Foreign Exchange Losses
Long operational foreign exchange losses contributed to the increase in net loss.
Challenges with Project Delays
Project sales timing delays impacted Q4 revenue recognition; expected projects remain on track to close in the first half of 2025.
Company Guidance
During Emeren Group, Ltd.'s Fourth Quarter 2024 earnings call, the company provided comprehensive guidance for 2025, highlighting several key metrics. Emeren anticipates full-year revenue to range between $80 and $100 million, with a gross margin of 30% to 33%. The Independent Power Producer (IPP) segment is expected to generate $28 to $30 million in revenue, maintaining a robust 50% gross margin. The Development Services Agreement (DSA) segment is projected to contribute $35 to $45 million, with IPP and DSA collectively accounting for over 70% of total revenue. Emeren also outlined a strong contracted revenue base, including $84 million in DSA revenue with an additional $100 million under negotiation. For the first half of 2025, revenue is predicted to be between $30 and $35 million, sustaining a gross margin of 30% to 33%. The company expressed confidence in achieving positive operating cash flow in 2025, supported by a substantial pipeline of 4.3 gigawatts in advanced-stage storage and 2.4 gigawatts of solar PV projects.

Emeren Group Financial Statement Overview

Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
40
Negative
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Emeren Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.75
Price Trends
50DMA
1.84
Positive
100DMA
1.86
Positive
200DMA
1.74
Positive
Market Momentum
MACD
0.03
Negative
RSI
68.79
Neutral
STOCH
95.45
Negative
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 1.75 is below the 20-day moving average (MA) of 1.82, below the 50-day MA of 1.84, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 68.79 is Neutral, neither overbought nor oversold. The STOCH value of 95.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOL.

Emeren Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$174.21M-2.89-664.69%39.53%-7.16%
56
Neutral
-2.90%-29.98%-13.97%
45
Neutral
$55.11M-1.2827.17%57.71%
41
Neutral
$29.81M-0.37-51.35%-103.78%
40
Underperform
$40.74M-3.7676.60%70.94%
39
Underperform
$54.75M-54.68%63.56%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SOL
Emeren Group
1.94
-0.11
-5.37%
VVPR
VivoPower International
2.38
0.87
57.62%
MAXN
Maxeon Solar Technologies
3.24
-5.47
-62.80%
FTCI
FTC Solar
11.66
7.46
177.62%
ZEO
Zeo Energy
0.96
-1.64
-63.08%
SMXT
SolarMax Technology, Inc.
0.75
-0.73
-49.32%

Emeren Group Corporate Events

M&A TransactionsShareholder MeetingsBusiness Operations and Strategy
Emeren Group Shareholders Approve Merger with Shurya Vitra
Positive
Dec 10, 2025

On December 9, 2025, Emeren Group Ltd held an extraordinary general meeting where shareholders approved two key proposals. The first proposal authorized a merger agreement with Shurya Vitra Ltd, resulting in Emeren becoming a wholly owned subsidiary, while the second proposal approved executive compensation related to the merger. With 92.8% and 91.1% of votes in favor, respectively, the approvals solidify Emeren’s strategic positioning in the renewable energy sector, potentially enhancing its operational capabilities and market influence.

M&A TransactionsShareholder MeetingsRegulatory Filings and Compliance
Emeren Group Reschedules Extraordinary General Meeting
Neutral
Oct 3, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 10, 2025