Tigo Energy (TYGO) AI Stock Analysis

• Market Cap: $52.63M
• Dividend Yield: N/A
• Average Volume (3M): 23.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -43.25%
• EPS Growth: -82.90%
• Country: US
• Employees: 140
• Sector: Technology
• Sector Strength: 57
• Industry: Solar
• EPS (TTM): -1.04
• Shares Outstanding: 61,913,940
• 10 Day Avg. Volume: 17,156
• 30 Day Avg. Volume: 23,400
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.65
• Price to Cash Flow (P/CF): -29.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.75
• Price Target Upside: 362.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Tigo Energy's overall stock score of 42 reflects significant financial challenges, including declining revenues and profitability, along with constrained cash flows. These fundamental weaknesses are compounded by a negative valuation outlook. While there is a positive note from the earnings call, indicating strategic wins and revenue growth, these are overshadowed by substantial operational losses and inventory charges. Technical analysis suggests a bearish outlook, as the stock trades below key moving averages. Overall, the stock faces considerable risks, with limited immediate upside potential.

Positive Factors

Geographic Diversity

The company's geographic diversity of revenues including EMEA, APAC, South America and the U.S. should also be viewed positively.

Industry Support

The U.S. solar industry is likely to find backing from Elon Musk, which could play a meaningful role in the next administration.

Revenue Growth

The company grew revenues by 21.3% sequentially in 4Q24, marking a full year of sequential quarterly revenue growth.

Negative Factors

Gross Margins

Depressed gross margins are expected in the near term due to inventory related pricing pressure.

Revenue Decline

The company ended 2024 with revenues of $54M compared to $145M in 2023, reflecting a 62.8% decline as the macro environment for the solar industry remained pressured.

Tigo Energy Business Overview & Revenue Model

Company Description

Tigo Energy, Inc. provides intelligent solar and energy storage solutions. It develops and manufactures smart hardware and software solutions that enhance safety, increase energy yield, and lower operating costs of residential, commercial, and utility-scale solar systems. The company combines its Flex MLPE (Module Level Power Electronics) and solar optimizer technology with intelligent, cloud-based software capabilities for energy monitoring and control. Its MLPE products maximize performance, enable real-time energy monitoring, and provide code-required rapid shutdown at the module level. The company also develops and manufactures products, such as inverters and battery storage systems for the residential solar-plus-storage market. The company was founded in 2007 and is based in Campbell, California.

How the Company Makes Money

Tigo Energy makes money primarily through the sale of its solar energy management products and solutions. The company's key revenue streams include the sale of module-level power electronics, which are integrated into solar panels to improve energy output and ensure safer operations. Additionally, Tigo Energy generates revenue from providing software and monitoring services that enable solar system operators to track and optimize the performance of their installations. Strategic partnerships with solar panel manufacturers and distributors also contribute to Tigo Energy's earnings by expanding its market reach and customer base.

Tigo Energy Financial Statement Overview

Summary

Tigo Energy faces significant financial challenges with declining revenues, negative profitability margins, and constrained cash flows. Despite manageable debt levels, the negative equity and ongoing losses present substantial financial risks.

Income Statement

Tigo Energy's income statement shows significant challenges, with declining revenues and negative profitability margins. The gross profit margin is negative at -8.06% TTM, indicating cost management issues. The net profit margin is substantially negative at -116.18% TTM, showing severe profitability challenges. Revenue growth has decreased drastically by -62.79% over the most recent period. The company also has negative EBIT and EBITDA margins, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a weak financial position with a debt-to-equity ratio of 0.19 TTM, suggesting manageable leverage. However, the equity ratio is low at 11.50% TTM, highlighting a small equity base relative to assets. Return on equity is negative due to the net losses, indicating unprofitable use of equity capital. Despite these weaknesses, the company has managed to reduce debt over the past few years.

Cash Flow

Cash flow analysis shows a negative free cash flow, which has worsened by 64.66% over the past year, indicating increasing cash constraints. The operating cash flow to net income ratio is not meaningful due to negative values, and free cash flow to net income ratio is also negative, reflecting cash flow challenges. Overall, cash flows remain strained, despite some reduction in capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
54.01M	145.23M	81.32M	43.64M	33.29M
	Gross Profit
-4.16M	51.31M	24.77M	12.64M	10.54M
	EBIT
-52.00M	-8.28M	-896.00K	-3.71M	-1.97K
	EBITDA
-50.00M	8.38M	-4.91M	-3.29M	-91.00K
	Net Income Common Stockholders
-62.75M	-984.00K	-7.04M	-4.86M	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.90M	31.21M	36.19M	6.18M	22.79K
	Total Assets
72.91M	127.78M	88.08M	23.96M	23.26K
	Total Debt
1.61M	34.15M	21.98M	9.41M	20.90M
	Net Debt
-10.14M	29.75M	-14.21M	3.23M	20.88M
	Total Liabilities
64.53M	64.95M	143.77M	73.85M	1.45K
	Stockholders Equity
8.38M	62.82M	-55.69M	-49.90M	21.81K
Cash Flow		Free Cash Flow
-13.64M	-39.79M	-17.62M	-5.31M	-274.74K
	Operating Cash Flow
-12.35M	-37.22M	-16.47M	-4.99M	-1.74K
	Investing Cash Flow
19.76M	-30.91M	-1.60M	-323.00K	-273.00K
	Financing Cash Flow
-61.00K	34.82M	48.32M	7.30M	-469.00

Tigo Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TYGO, the sentiment is Neutral. The current price of 0.81 is above the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.87, and below the 200-day MA of 1.11, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.32 is Neutral, neither overbought nor oversold. The STOCH value of 73.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TYGO.

Tigo Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	$10.74B	10.21	-6.69%	3.04%	7.44%	-10.92%
TYGO	42 Neutral	$52.63M	―	-176.23%	―	-43.25%	-82.90%
NOVA	42 Neutral	$26.30M	―	-21.91%	―	16.55%	15.72%
SPRU	40 Underperform	$35.25M	―	-39.70%	―	2.37%	-10.00%
FTCI	39 Underperform	$40.28M	―	-119.27%	―	-62.71%	11.58%
MAXN	33 Underperform	$54.28M	―	307.38%	―	-43.42%	-53.77%
SMXT	27 Underperform	$53.17M	―		―	-57.54%	-8091.75%

Tigo Energy Corporate Events

Tigo Energy Approves Executive Incentive Plan and Amends Agreements

On February 18, 2025, Tigo Energy, Inc. announced the approval of an annual Executive Short Term Incentive Plan designed to reward key executives with cash bonuses based on the achievement of specific performance metrics, such as revenue and Adjusted EBITDA, as well as individual performance objectives. Additionally, on February 19, 2025, Tigo Energy amended executive employment agreements for its CEO and CFO, outlining terms for bonuses and severance packages in the event of termination or resignation, aimed at enhancing executive compensation and retention strategies.