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Emeren Group Ltd (SOL)
:SOL
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Emeren Group (SOL) AI Stock Analysis

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SOL

Emeren Group

(NYSE:SOL)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
$2.00
▲(5.82% Upside)
The overall stock score is primarily influenced by the company's financial performance challenges, including declining revenues and profitability, as well as significant cash flow issues. Technical analysis provides a neutral outlook, while valuation concerns due to a negative P/E ratio and lack of dividend yield further weigh down the score.
Positive Factors
Strong Balance Sheet
A strong balance sheet with low leverage provides financial stability, enabling the company to withstand economic fluctuations and invest in growth opportunities without excessive debt burden.
Strategic Partnerships
Partnerships with governments and energy firms enhance revenue potential and provide competitive advantages in securing projects and financing, supporting long-term growth and market presence.
Government Incentives
Government incentives for renewable energy can bolster financial performance by reducing costs and increasing profitability, supporting sustainable growth in the solar energy sector.
Negative Factors
Declining Revenue
Declining revenue growth indicates challenges in maintaining sales momentum, which could impact long-term profitability and market competitiveness if not addressed.
Negative Cash Flow
Negative cash flow growth suggests difficulties in sustaining operations and funding future investments, potentially limiting the company's ability to capitalize on growth opportunities.
Unprofitability
A negative net profit margin reflects operational inefficiencies and challenges in cost management, which could hinder long-term financial health and shareholder value.

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

Emeren Group Business Overview & Revenue Model

Company DescriptionEmeren 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 MoneyEmeren 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 Earnings Call Summary

Earnings Call Date:Aug 28, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Dec 09, 2025
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
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
45
Neutral
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
60
Neutral
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
38
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue85.62M92.07M105.64M81.41M79.66M73.92M
Gross Profit23.01M24.12M25.01M24.48M31.43M16.69M
EBITDA6.15M-686.00K7.13M7.35M19.92M15.87M
Net Income-5.01M-12.48M-3.19M-4.67M6.86M2.78M
Balance Sheet
Total Assets464.92M447.57M478.35M500.51M529.27M337.35M
Cash, Cash Equivalents and Short-Term Investments52.88M50.01M70.17M107.11M254.07M40.59M
Total Debt40.01M63.39M60.83M70.59M57.85M115.58M
Total Liabilities123.27M109.55M115.04M100.99M80.86M153.62M
Stockholders Equity304.06M300.52M325.31M347.29M404.01M139.61M
Cash Flow
Free Cash Flow-13.06M-20.04M-34.23M-72.87M-18.03M-22.18M
Operating Cash Flow603.00K-4.29M-23.49M-35.25M-6.42M-13.93M
Investing Cash Flow-14.96M-15.47M15.31M-37.06M19.39M510.00K
Financing Cash Flow15.58M-5.85M-25.26M-60.28M204.88M30.18M

Emeren Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.89
Price Trends
50DMA
1.88
Positive
100DMA
1.82
Positive
200DMA
1.75
Positive
Market Momentum
MACD
<0.01
Positive
RSI
53.51
Neutral
STOCH
53.33
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 1.89 is above the 20-day moving average (MA) of 1.88, above the 50-day MA of 1.88, and above the 200-day MA of 1.75, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOL.

Emeren Group Risk Analysis

Emeren Group disclosed 44 risk factors in its most recent earnings report. Emeren Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Emeren Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
49
Neutral
$96.48M-1.27%-33.25%81.55%
48
Neutral
$147.93M-2.6157.88%308.47%76.84%
47
Neutral
$161.06M-2.97-3034.87%52.31%-2421.56%
42
Neutral
$81.66M-1.8916.21%86.59%55.95%
41
Neutral
$59.98M-0.02209.06%-54.68%63.56%
41
Neutral
$55.39M-2.84110.69%-27.65%16.39%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SOL
Emeren Group
1.89
-0.94
-33.22%
MAXN
Maxeon Solar Technologies
3.35
-5.08
-60.26%
SPWR
Complete Solaria
1.76
-0.72
-29.03%
TYGO
Tigo Energy
2.50
0.97
63.40%
ZEO
Zeo Energy
1.35
-0.31
-18.67%
SMXT
SolarMax Technology, Inc.
1.05
0.41
64.06%

Emeren Group Corporate Events

Delistings and Listing ChangesM&A TransactionsShareholder Meetings
Emeren Group Announces Merger Agreement with Shurya Vitra
Neutral
Sep 3, 2025

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.

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: Sep 30, 2025