Maxeon Solar Technologies (MAXN) AI Stock Analysis

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Maxeon Solar Technologies

(NASDAQ:MAXN)

39Underperform

Maxeon Solar Technologies is facing significant financial challenges, with declining revenues and persistent losses. Negative equity and high liabilities on the balance sheet, along with negative cash flows, highlight financial instability. The stock is in a bearish trend, and valuation metrics are unattractive due to negative profitability. These factors contribute to a low overall score, indicating high risk and poor investment prospects without strategic improvements.

Maxeon Solar Technologies (MAXN) vs. S&P 500 (SPY)

Market Cap

$43.88M

Dividend YieldN/A

Average Volume (3M)180.67K

Price to Earnings (P/E)―

Beta (1Y)1.33

Revenue Growth-54.68%

EPS Growth63.56%

CountryUS

Employees3,888

SectorTechnology

Sector Strength67

IndustrySolar

Share Statistics

EPS (TTM)-6.60

Shares Outstanding15,290,000

10 Day Avg. Volume201,450

30 Day Avg. Volume180,672

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap7.82

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit4.39

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.00

Price Target Upside39.37% Upside

Rating ConsensusHold

Number of Analyst Covering0

Maxeon Solar Technologies Business Overview & Revenue Model

Company DescriptionMaxeon Solar Technologies (MAXN) is a leading global solar technology company specializing in the research, development, and manufacturing of advanced solar panels and energy solutions. The company primarily operates in the renewable energy sector, providing high-efficiency solar panels under the SunPower brand to residential, commercial, and industrial customers worldwide. Maxeon Solar Technologies is renowned for its innovation in solar technology, offering products that are known for their durability, efficiency, and aesthetic appeal.

How the Company Makes MoneyMaxeon Solar Technologies generates revenue primarily through the sale of its solar panels and systems. The company's key revenue streams include the manufacture and distribution of high-efficiency solar panels to residential, commercial, and utility-scale customers. Maxeon also engages in strategic partnerships and supply agreements with key players in the solar industry to expand its market reach and optimize its manufacturing processes. Additionally, the company invests in research and development to enhance its product offerings and maintain a competitive edge in the rapidly evolving solar technology market.

Maxeon Solar Technologies Financial Statement Overview

Summary

Maxeon Solar Technologies is facing substantial financial challenges. The income statement reflects declining revenue and persistent losses. The balance sheet is under pressure with negative equity and high liabilities. Cash flow issues are evident with negative operating and free cash flow, indicating operational and financial sustainability concerns. The company needs strategic interventions to stabilize its financial health and improve profitability.

Income Statement

―

Maxeon Solar Technologies has experienced a significant decline in total revenue over the recent years, with the 2024 revenue nearly halving from 2023. Gross profit margin is negative, indicating cost inefficiencies or pricing pressures. The company has a negative net profit margin, highlighting profitability challenges. EBIT and EBITDA margins are also negative, suggesting operational difficulties. Overall, the income statement reflects a challenging financial environment with declining revenues and negative profitability metrics.

Balance Sheet

The company's balance sheet shows negative stockholders' equity, a concerning indicator of financial health. The debt-to-equity ratio is not calculable due to negative equity, but high total liabilities relative to assets suggest leverage issues. The equity ratio is negative, further highlighting the financial instability. The balance sheet reflects a precarious financial position with high leverage and negative equity.

Cash Flow

―

Operating cash flow is negative, indicating that the company's core operations are not generating cash. The free cash flow is also negative, showing cash outflows exceeding inflows, with no visible improvement trend. The cash flow metrics highlight liquidity challenges and the need for external financing to sustain operations. While financing cash flow is positive, indicating external funding, reliance on it is not ideal for long-term sustainability.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
1.12B	1.06B	783.28M	844.84M	1.20B
	Gross Profit
78.11M	-47.95M	-29.01M	-9.78M	-2.31M
	EBIT
-219.21M	-200.29M	-172.45M	-130.18M	-135.65M
	EBITDA
-175.21M	-141.33M	-169.00M	-46.50M	-84.16M
	Net Income Common Stockholders
-275.83M	-258.07M	-239.27M	-137.81M	-173.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
190.17M	303.44M	166.54M	206.74M	120.96M
	Total Assets
1.00B	1.26B	1.06B	980.34M	990.21M
	Total Debt
437.66M	449.80M	187.27M	198.98M	82.57M
	Net Debt
247.49M	222.36M	20.73M	-7.76M	-38.38M
	Total Liabilities
997.37M	1.21B	701.67M	541.06M	622.69M
	Stockholders Equity
-1.11M	42.44M	349.46M	432.64M	362.22M
Cash Flow		Free Cash Flow
-321.89M	-60.04M	-159.54M	-216.85M	-68.48M
	Operating Cash Flow
-254.29M	3.44M	-4.87M	-189.16M	-26.34M
	Investing Cash Flow
13.93M	-139.30M	-154.45M	-45.49M	-41.87M
	Financing Cash Flow
167.95M	211.47M	141.81M	320.35M	89.88M

Maxeon Solar Technologies Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.87

Price Trends

50DMA

3.34

Negative

100DMA

4.90

Negative

200DMA

7.95

Negative

Market Momentum

MACD

-0.09

Negative

RSI

41.66

Neutral

STOCH

24.95

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAXN, the sentiment is Negative. The current price of 2.87 is below the 20-day moving average (MA) of 3.04, below the 50-day MA of 3.34, and below the 200-day MA of 7.95, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 41.66 is Neutral, neither overbought nor oversold. The STOCH value of 24.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAXN.

Maxeon Solar Technologies Risk Analysis

Maxeon Solar Technologies disclosed 55 risk factors in its most recent earnings report. Maxeon Solar Technologies 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

Maxeon Solar Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSLR	68 Neutral	$14.00B	11.10	16.77%	―	19.42%	23.19%
JKS	63 Neutral	$899.22M	118.10	-9.49%	16.50%	-30.26%	-156.69%
Sector *	60 Neutral	$10.93B	10.46	-6.70%	2.99%	7.54%	-12.22%
RUN	53 Neutral	$1.65B	―	-73.12%	―	-9.83%	-71.44%
CSIQ	52 Neutral	$631.97M	17.65	1.34%	―	-21.28%	-87.20%
SEDG	44 Neutral	$773.46M	―	-116.01%	―	-68.86%	-4917.87%
MAXN	39 Underperform	$43.88M	―	307.38%	―	-54.68%	63.56%

* Technology Sector Average

Performance Comparison

MAXN

Maxeon Solar Technologies

2.80

-220.20

-98.74%

CSIQ

Canadian Solar

9.18

-8.18

-47.12%

FSLR

First Solar

127.16

-66.65

-34.39%

JKS

JinkoSolar

17.53

-6.28

-26.38%

SEDG

SolarEdge Technologies

12.92

-47.15

-78.49%

RUN

Sunrun

6.98

-5.01

-41.78%

Maxeon Solar Technologies Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2024)

% Change Since: -14.84%|

Next Earnings Date:May 22, 2025

Earnings Call Sentiment Negative

The earnings call highlighted significant liquidity support and strategic restructuring measures, alongside expansion efforts in the U.S. market and defensive actions on intellectual property. However, these positives are overshadowed by substantial cash flow challenges, customer delays, inventory issues, and significant shareholder dilution.

Q1-2024 Updates

Positive Updates

Liquidity Support and Restructuring

Maxeon negotiated commitments for significant liquidity support from its largest shareholder, TZE, and restructured its 2025 convertible bonds, with the majority expected to be converted into equity, stabilizing the balance sheet.

U.S. Dealer Channel Expansion

Maxeon signed up more than 100 U.S. dealers since the last earnings call, aiming to grow its market share in the U.S. residential market, with a focus on premium products.

Patent Infringement Actions

The company initiated patent infringement cases against several competitors, intending to monetize its intellectual property in shingling, TOPCon, and IBC technologies.

Negative Updates

Significant Cash Flow Challenges

Maxeon faced cash flow challenges due to Chinese module oversupply, high interest rates, policy changes, and the termination of the SunPower supply agreement.

Utility Scale Customer Delays

Two large utility scale customers experienced project delays, impacting Maxeon's production, increasing product costs, and affecting financial results for 2024.

Inventory and Demand Issues

Maxeon struggled with high inventory levels and slower-than-anticipated inventory turnover, particularly in the European market facing oversupply and price erosion.

Substantial Shareholder Dilution

The liquidity transactions with TZE are expected to result in substantial dilution for existing shareholders.

Company Guidance

During the Maxeon Solar Technologies Q1 2024 Earnings Call, the company provided guidance indicating significant financial challenges due to market dislocation, including Chinese module oversupply, high interest rates, and policy changes. As a result, Maxeon faced cash flow issues, exacerbated by the termination of a supply agreement and project delays from two major utility scale customers. To address these challenges, Maxeon secured a $97.5 million debt investment and a $100 million equity commitment from its largest shareholder, TZE, subject to regulatory approval. This financing is expected to stabilize their balance sheet, despite resulting in substantial dilution for existing shareholders. The company anticipates Q2 2024 shipments of 520 to 600 megawatts and annual revenues between $640 million and $800 million, with a focus on rebuilding its U.S. distributed generation channel and transitioning to newer technologies to return to profitability by early 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.