Tigo Energy (TYGO) AI Stock Analysis

• Market Cap: $92.04M
• Dividend Yield: N/A
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: 52.31%
• EPS Growth: -2421.56%
• Country: US
• Employees: 140
• Sector: Technology
• Sector Strength: 83
• Industry: Solar
• EPS (TTM): 0.01
• Shares Outstanding: 65,740,060
• 10 Day Avg. Volume: 238,639
• 30 Day Avg. Volume: 1,862,384
• 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: 1.08
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 13.89
• Enterprise Value/Ebitda: -2.58
• 1Y Price Target: $4.63
• Price Target Upside: 240.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: $1.00 ▼(-26.47% Downside)

Tigo Energy's overall stock score reflects significant financial challenges, including high leverage and negative cash flows, which weigh heavily on the score. However, positive earnings call highlights and strategic corporate events provide some optimism for future growth. Technical and valuation metrics remain weak, further impacting the overall score.

Positive Factors

Financial Performance

Tigo Energy is considered significantly undervalued, with improving fundamentals and a strong balance sheet, leading to a Buy rating on the stock.

Partnership and Market Expansion

A new manufacturing and marketing partnership with EG4 Electronics aims to produce optimized solar solutions in the U.S., enhancing Tigo Energy's presence in the American market.

Revenue Growth

Analysts project substantial revenue growth for Tigo Energy, with expectations of revenues exceeding $500M in 2034 and a consistent increase in gross margins over the years.

Negative Factors

Market Risks

Risks include dilution risk, supply chain risk, technological risk, execution risk, regulatory risk, competition risk, seasonality risk, customer concentration risk, delisting risk, and uncertainty related to macroeconomic conditions and geopolitical events.

Revenue Source Concerns

Tigo Energy is generating roughly 80% of its revenues outside the US, which reduces the impact of U.S. solar deployment incentives and tariff-related headwinds.

Risks and Challenges

There are several risks associated with Tigo Energy, including dilution, supply chain, technological, execution, regulatory, competition, seasonality, customer concentration, delisting, and macroeconomic uncertainties.

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 generates revenue primarily through the sale of its advanced MLPE products and associated software solutions. The company's core revenue streams include the sale of solar optimizers, which improve the energy yield of solar panels by dynamically adjusting the operating conditions of each module, and the sales of inverters that convert direct current (DC) produced by solar panels into alternating current (AC). Additionally, Tigo offers monitoring and data analytics software that provides real-time insights into solar system performance, which is often sold as a subscription-based service. Strategic partnerships with solar panel manufacturers and installers also play a significant role in expanding Tigo's market reach and enhancing its revenue potential. Furthermore, Tigo Energy may engage in licensing agreements or partnerships that leverage its proprietary technology to drive additional income.

Tigo Energy Financial Statement Overview

Summary

Tigo Energy faces significant financial challenges, including negative cash flows, high leverage, and persistent net losses. Despite revenue growth, profitability remains elusive, raising concerns about financial stability.

Income Statement

Tigo Energy has experienced volatile revenue growth, with a recent TTM (Trailing-Twelve-Months) increase of 37.68% following a decline in the previous year. Despite an improvement in gross profit margin from negative to positive, the company continues to face significant operational challenges, as evidenced by negative EBIT and EBITDA margins. The net profit margin remains deeply negative due to substantial losses.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to minimal stockholders' equity, indicating leverage risks. Despite a slight improvement in equity, the company remains undercapitalized. The equity ratio is low, reflecting reliance on debt financing. Return on equity is not meaningful due to persistent net losses.

Cash Flow

Cash flow analysis shows negative free cash flow and operating cash flow, highlighting liquidity pressures. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating inefficient cash generation relative to net losses. The company needs to improve cash flow management to achieve financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.41M	54.01M	145.23M	81.32M	43.64M	33.29M
Gross Profit	7.15M	-4.16M	51.31M	24.77M	12.64M	10.54M
EBITDA	-38.47M	-50.00M	8.38M	-4.91M	-3.29M	-91.00K
Net Income	-51.35M	-62.75M	-984.00K	-7.04M	-4.86M	-1.97K
Balance Sheet
Total Assets	80.64M	72.91M	127.78M	88.08M	23.96M	23.26K
Cash, Cash Equivalents and Short-Term Investments	28.02M	19.90M	31.21M	36.19M	6.18M	4.24M
Total Debt	47.88M	42.12M	34.15M	21.98M	9.41M	20.90M
Total Liabilities	78.95M	64.53M	64.95M	143.77M	73.85M	1.45K
Stockholders Equity	1.69M	8.38M	62.82M	-55.69M	-3.04M	-20.83M
Cash Flow
Free Cash Flow	6.65M	-13.64M	-39.79M	-17.62M	-5.31M	-274.74K
Operating Cash Flow	7.76M	-12.35M	-37.22M	-16.47M	-4.99M	-1.74K
Investing Cash Flow	-13.24M	19.76M	-30.91M	-1.60M	-323.00K	-273.00K
Financing Cash Flow	546.00K	-61.00K	34.82M	48.32M	7.30M	-469.00

Tigo Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.36
• 50DMA: Positive
• 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 TYGO, the sentiment is Positive. The current price of 1.36 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.29, and above the 200-day MA of 1.03, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 78.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TYGO.

Tigo Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
FTCI	56 Neutral	$103.83M	―	-175.83%	―	-17.53%	8.53%
TYGO	47 Neutral	$92.04M	―	-221.18%	―	52.31%	-2421.56%
SPRU	46 Neutral	$27.46M	―	-47.48%	―	22.78%	-27.59%
MAXN	46 Neutral	$68.94M	―	307.38%	―	-54.68%	63.56%
SMXT	41 Neutral	$67.34M	―		―	-27.65%	16.39%
NOVAQ	40 Underperform	$50.27K	―	-21.91%	―	16.55%	15.72%

Tigo Energy Corporate Events

Tigo Energy Partners with EG4 for Inverter Production

On August 19, 2025, Tigo Energy entered into a manufacturing and supply agreement with EG4 Electronics to produce optimized inverters in the United States, qualifying for tax credits under the Inflation Reduction Act. This partnership aims to boost American energy independence and create over 1,000 jobs, aligning with EG4’s acquisition of a new manufacturing facility in Texas.

Tigo Energy Regains Nasdaq Compliance as of June 2025

On June 16, 2025, Tigo Energy, Inc. received a notification from The Nasdaq Stock Market LLC confirming that the company had regained compliance with the minimum bid price requirements for continued listing on Nasdaq. Previously, on April 3, 2025, Tigo Energy was informed of non-compliance due to its stock price falling below $1.00 per share for 30 consecutive business days, but the issue was resolved as the stock price met the required threshold for 10 consecutive days.

Tigo Energy Signs Lease for New Headquarters

On May 27, 2025, Tigo Energy, Inc. entered into a lease agreement with Boccardo Corporation for a new headquarters in Los Gatos, California. The lease, starting June 1, 2025, covers 15,342 square feet with a monthly rent of $38,355, increasing annually by 3%, and includes an option to extend for three years. Tigo Energy plans to move its corporate headquarters to this location by June 30, 2025, updating its principal mailing address but retaining its current telephone number.