Emeren Group (SOL) AI Stock Analysis

• Market Cap: $94.95M
• Dividend Yield: N/A
• Average Volume (3M): 185.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -33.44%
• EPS Growth: 81.60%
• Country: US
• Employees: 197
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): 0.03
• Shares Outstanding: 51,321,620
• 10 Day Avg. Volume: 168,322
• 30 Day Avg. Volume: 185,986
• PEG Ratio: -0.03
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -5.25
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: -6.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $2.00 ▲(6.95% Upside)

Emeren Group's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and cash flow issues. The technical analysis suggests a neutral to bearish trend, and the valuation metrics indicate unattractiveness due to negative profitability. The absence of earnings call and corporate events data limits further insights.

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 Business Overview & Revenue Model

Company Description

Emeren Group (SOL) is a global solar energy company focused on the development, construction, and operation of solar power projects. With a robust presence in various markets, Emeren specializes in providing clean energy solutions through its portfolio of utility-scale solar energy plants. The company's core offerings include solar project development, long-term asset management, and energy production services, catering to both residential and commercial clients seeking sustainable energy alternatives.

How the Company Makes Money

Emeren 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.44M	92.07M	105.64M	81.41M	79.66M	73.92M
Gross Profit	20.29M	24.12M	25.01M	24.48M	31.43M	16.69M
EBITDA	-20.58M	-686.00K	7.13M	7.35M	19.92M	15.87M
Net Income	-3.95M	-12.48M	-3.19M	-4.67M	6.86M	2.78M
Balance Sheet
Total Assets	442.87M	447.57M	478.35M	500.51M	529.27M	337.35M
Cash, Cash Equivalents and Short-Term Investments	48.36M	50.01M	70.17M	107.11M	254.07M	40.59M
Total Debt	83.20M	63.39M	60.83M	70.59M	57.85M	115.58M
Total Liabilities	122.58M	109.55M	115.04M	100.99M	80.86M	153.62M
Stockholders Equity	310.55M	300.52M	325.31M	347.29M	404.01M	139.61M
Cash Flow
Free Cash Flow	-8.71M	-20.04M	-34.23M	-72.87M	-18.03M	-22.18M
Operating Cash Flow	5.07M	-4.29M	-23.49M	-35.25M	-6.42M	-13.93M
Investing Cash Flow	-12.80M	-15.47M	15.31M	-37.06M	19.39M	510.00K
Financing Cash Flow	15.10M	-5.85M	-25.26M	-60.28M	204.88M	30.18M

Emeren Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOL, the sentiment is Negative. The current price of 1.87 is above the 20-day moving average (MA) of 1.86, above the 50-day MA of 1.87, and above the 200-day MA of 1.73, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOL.

Emeren Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FTCI	―	$130.01M	―	-175.83%	―	-17.53%	8.53%
SOL	―	$94.95M	―	-1.27%	―	-33.44%	81.60%
ZEO	―	$113.29M	―	―	―	86.59%	55.95%
MAXN	―	$59.98M	―	―	―	-54.68%	63.56%
SMXT	―	$55.93M	―	―	―	-27.65%	16.39%
VVPR	―	$47.63M	-0.72	―	―	-51.35%	-103.78%

Emeren Group Corporate Events

Emeren Group Announces Merger Agreement with Shurya Vitra Ltd.

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, making it a wholly owned subsidiary of Shurya Vitra. The merger is supported by key stakeholders, representing 39.6% of the company’s voting power, and is considered fair and in the best interests of the company by an independent Special Committee. The merger proposal, along with related compensation and adjournment proposals, will be voted on at a shareholders meeting scheduled for December 9, 2025.

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.

Emeren Group Reschedules Extraordinary General Meeting

Emeren Group Ltd announced the cancellation and rescheduling of its extraordinary general meeting initially set for October 21, 2025, due to the need for further amendments to filings under review by the U.S. Securities and Exchange Commission. The company plans to announce a new meeting date to consider the Merger Proposal involving Shurya Vitra Ltd. and Emeren Holdings Ltd., ensuring compliance with relevant laws and regulations.

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.

Emeren Group Announces Merger Agreement with Shurya Vitra

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.

Emeren Group Delays Q2 2025 10-Q Filing

Emeren Group Ltd has announced a delay in filing its Form 10-Q (Quarter Report) for the financial period ending June 30, 2025. The delay is primarily due to challenges in compiling and processing necessary information for the report. The company anticipates filing the delayed report within five calendar days following the original due date. Financially, the company expects to report $12.9 million in revenue and a $27.6 million net loss for the quarter, influenced by an impairment charge and a decrease in revenue from solar power projects, offset by a foreign exchange gain. Emeren Group is committed to maintaining compliance, as indicated by the signature of Ke Chen, the Chief Financial Officer.

The most recent analyst rating on (SOL) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Emeren Group stock, see the SOL Stock Forecast page.