SolarEdge Technologies (SEDG) AI Stock Analysis

• Market Cap: $2.34B
• Dividend Yield: N/A
• Average Volume (3M): 4.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: -36.07%
• EPS Growth: -233.14%
• Country: US
• Employees: 3,961
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -0.81
• Shares Outstanding: 59,374,794
• 10 Day Avg. Volume: 4,385,985
• 30 Day Avg. Volume: 4,622,871
• 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: 0.50
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: -1.48
• Enterprise Value/Ebitda: -0.90
• 1Y Price Target: $21.57
• Price Target Upside: -45.32% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 23

• Rating: 51 Neutral
• Price Target: $31.00 ▼(-21.42% Downside)

The overall stock score reflects significant financial challenges, including declining profitability and high leverage, which weigh heavily on the company's outlook. Despite positive technical indicators suggesting bullish momentum, the negative valuation metrics and financial performance are major concerns. The company's strategic focus on the U.S. market and recent improvements in cash flow and gross margins provide some optimism, but the risks remain substantial.

Positive Factors

Gross Margin Improvement

The improvement in gross margin indicates enhanced operational efficiency and cost management, which could lead to better profitability in the long term.

Strategic Partnerships

Strategic partnerships can enhance market position and drive growth by expanding distribution channels and leveraging partner networks.

Positive Free Cash Flow Projection

Positive free cash flow projection suggests improved financial health and sustainability, allowing for reinvestment and debt reduction.

Negative Factors

Declining Profitability

Declining profitability can strain resources and limit the ability to invest in growth opportunities, affecting long-term competitiveness.

High Leverage

High leverage increases financial risk and can limit strategic flexibility, potentially impacting the company's ability to navigate market changes.

Cash Flow Challenges

Negative cash flows indicate operational inefficiencies and can hinder the company's ability to fund operations and growth initiatives.

SolarEdge Technologies Business Overview & Revenue Model

Company Description

SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. It operates through five segments: Solar, Energy Storage, e-Mobility, Critical Power, and Automation Machines. The company offers inverters, power optimizers, communication devices, and smart energy management solutions used in residential, commercial, and small utility-scale solar installations; and a cloud-based monitoring platform that collects and processes information from the power optimizers and inverters, as well as monitors and manages the solar PV system. It also provides residential, commercial, and large scale PV, energy storage and backup, electric vehicle charging, and home energy management solutions, as well as grid services; and e-Mobility, automation machines, lithium-ion cells and battery packs, and uninterrupted power supply solutions, as well as virtual power plants, which helps to manage the load on the grid and grid stability. In addition, the company offers pre-sales support, ongoing trainings, and technical support and after installation services. The company sells its products to the providers of solar PV systems; and solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel.

How the Company Makes Money

SolarEdge generates revenue primarily through the sale of its solar inverters and power optimizers, which are critical components of solar energy systems. The company also earns money from related services, including monitoring and energy management software, which provide added value to customers by optimizing energy production and consumption. Key revenue streams include direct sales to installers and distributors, as well as partnerships with solar manufacturers. Additionally, SolarEdge benefits from increasing global demand for renewable energy solutions, government incentives for solar installations, and expanding its product line to include energy storage and EV charging solutions, which further enhance its revenue potential.

SolarEdge Technologies Financial Statement Overview

Summary

SolarEdge Technologies is facing financial difficulties, with declining profitability, high leverage, and negative cash flows. The company needs to address operational inefficiencies and improve its financial stability to enhance its financial health. The solar industry is competitive, and these financial challenges could impact the company's ability to capitalize on growth opportunities.

Income Statement

SolarEdge Technologies has experienced a significant decline in profitability, with negative gross and net profit margins in the TTM period. The company has also faced challenges in maintaining revenue growth, as evidenced by a modest 2.62% growth rate in the latest TTM period compared to a decline in the previous year. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.45 in the TTM period, indicating increased leverage and potential financial risk. Return on equity is negative, reflecting poor profitability relative to shareholder equity. However, the equity ratio remains stable, suggesting that a significant portion of assets is financed by equity.

Cash Flow

SolarEdge Technologies has faced challenges in cash flow management, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is also negative, indicating cash flow issues relative to earnings. However, the free cash flow to net income ratio suggests some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	940.56M	901.46M	2.98B	3.11B	1.96B	1.46B
Gross Profit	-790.38M	-877.20M	703.82M	844.65M	629.32M	461.36M
EBITDA	-1.29B	-1.64B	142.49M	237.63M	237.44M	206.06M
Net Income	-1.72B	-1.81B	34.33M	93.78M	169.17M	140.32M
Balance Sheet
Total Assets	2.49B	2.63B	4.59B	4.27B	2.90B	2.44B
Cash, Cash Equivalents and Short-Term Investments	785.26M	585.89M	860.04M	1.02B	697.82M	1.03B
Total Debt	745.49M	757.35M	735.30M	732.27M	713.68M	662.61M
Total Liabilities	1.98B	1.97B	2.18B	2.09B	1.59B	1.35B
Stockholders Equity	513.22M	658.34M	2.41B	2.18B	1.31B	1.09B
Cash Flow
Free Cash Flow	-49.13M	-421.48M	-350.64M	-138.06M	64.88M	95.86M
Operating Cash Flow	-25.50M	-313.32M	-180.11M	31.28M	214.13M	222.66M
Investing Cash Flow	309.25M	416.29M	-268.89M	-417.04M	-484.21M	-236.64M
Financing Cash Flow	23.95M	-20.13M	-11.96M	654.61M	-15.18M	640.48M

SolarEdge Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEDG, the sentiment is Positive. The current price of 39.45 is above the 20-day moving average (MA) of 33.79, above the 50-day MA of 30.53, and above the 200-day MA of 20.09, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 67.14 is Neutral, neither overbought nor oversold. The STOCH value of 90.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEDG.

SolarEdge Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENPH	75 Outperform	$4.77B	28.75	19.84%	―	4.39%	37.70%
SHLS	67 Neutral	$1.28B	60.65	4.26%	―	-11.95%	-7.87%
ARRY	64 Neutral	$1.26B	-4.72	-57.01%	―	6.36%	-1683.09%
JKS	61 Neutral	$1.21B	-4.82	0.27%	11.45%	-30.26%	-156.69%
SEDG	51 Neutral	$2.34B	―	-131.02%	―	-36.07%	-233.14%
CSIQ	50 Neutral	$867.29M	-125.36	1.28%	―	-9.11%	-118.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

SolarEdge Technologies Corporate Events

SolarEdge Technologies Confirms Board and Auditor Appointments

At the Annual Meeting on June 3, 2025, SolarEdge Technologies‘ stockholders voted on several key matters. The election of six board members was confirmed, and the appointment of Kost Forer Gabbay & Kasierer as auditors for 2025 was ratified. Additionally, the compensation for executive officers was approved. However, an amendment to limit the liability of certain officers was not passed due to Delaware law’s voting standards, despite receiving over 92% approval from voting power.