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SOLAREDGE TECHNOLOGIES INC (SEDG) Stock Fundamental Analysis

NASDAQ:SEDG - Nasdaq - US83417M1045 - Common Stock - Currency: USD

12.64  +0.15 (+1.2%)

After market: 12.62 -0.02 (-0.16%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to SEDG. SEDG was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of SEDG have multiple concerns. SEDG has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

SEDG had negative earnings in the past year.
SEDG had a negative operating cash flow in the past year.
Of the past 5 years SEDG 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: SEDG reported negative operating cash flow in multiple years.
SEDG Yearly Net Income VS EBIT VS OCF VS FCFSEDG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500M -1B -1.5B

1.2 Ratios

With a Return On Assets value of -68.68%, SEDG is not doing good in the industry: 92.66% of the companies in the same industry are doing better.
SEDG has a Return On Equity of -274.38%. This is amonst the worse of the industry: SEDG underperforms 91.74% of its industry peers.
Industry RankSector Rank
ROA -68.68%
ROE -274.38%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
SEDG Yearly ROA, ROE, ROICSEDG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

SEDG does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
SEDG Yearly Profit, Operating, Gross MarginsSEDG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200

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2

2. Health

2.1 Basic Checks

SEDG does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for SEDG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
SEDG Yearly Shares OutstandingSEDG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
SEDG Yearly Total Debt VS Total AssetsSEDG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of -1.29, we must say that SEDG is in the distress zone and has some risk of bankruptcy.
SEDG has a worse Altman-Z score (-1.29) than 78.90% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that SEDG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, SEDG is doing worse than 76.15% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF N/A
Altman-Z -1.29
ROIC/WACCN/A
WACC11.32%
SEDG Yearly LT Debt VS Equity VS FCFSEDG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

SEDG has a Current Ratio of 1.95. This is a normal value and indicates that SEDG is financially healthy and should not expect problems in meeting its short term obligations.
SEDG has a Current ratio of 1.95. This is in the lower half of the industry: SEDG underperforms 74.31% of its industry peers.
SEDG has a Quick Ratio of 1.33. This is a normal value and indicates that SEDG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.33, SEDG is doing worse than 75.23% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.95
Quick Ratio 1.33
SEDG Yearly Current Assets VS Current LiabilitesSEDG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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3

3. Growth

3.1 Past

SEDG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -656.54%.
SEDG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -69.71%.
Measured over the past years, SEDG shows a decrease in Revenue. The Revenue has been decreasing by -8.76% on average per year.
EPS 1Y (TTM)-656.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-282.61%
Revenue 1Y (TTM)-69.71%
Revenue growth 3Y-22.86%
Revenue growth 5Y-8.76%
Sales Q2Q%-37.91%

3.2 Future

SEDG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.77% yearly.
Based on estimates for the next years, SEDG will show a quite strong growth in Revenue. The Revenue will grow by 16.32% on average per year.
EPS Next Y87.62%
EPS Next 2Y42.17%
EPS Next 3Y27.81%
EPS Next 5Y16.77%
Revenue Next Year17.14%
Revenue Next 2Y25.63%
Revenue Next 3Y22.92%
Revenue Next 5Y16.32%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SEDG Yearly Revenue VS EstimatesSEDG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B
SEDG Yearly EPS VS EstimatesSEDG Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 5 -5 -10 -15 -20

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for SEDG. In the last year negative earnings were reported.
Also next year SEDG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
SEDG Price Earnings VS Forward Price EarningsSEDG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
SEDG Per share dataSEDG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 -20

4.3 Compensation for Growth

SEDG's earnings are expected to grow with 27.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.17%
EPS Next 3Y27.81%

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0

5. Dividend

5.1 Amount

SEDG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SOLAREDGE TECHNOLOGIES INC

NASDAQ:SEDG (4/17/2025, 8:00:02 PM)

After market: 12.62 -0.02 (-0.16%)

12.64

+0.15 (+1.2%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-19 2025-02-19/bmo
Earnings (Next)05-05 2025-05-05/amc
Inst Owners105.96%
Inst Owner Change0%
Ins Owners2.26%
Ins Owner Change2.7%
Market Cap742.98M
Analysts52.11
Price Target19.97 (57.99%)
Short Float %38.03%
Short Ratio4.92
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-465.76%
Min EPS beat(2)-822.2%
Max EPS beat(2)-109.32%
EPS beat(4)0
Avg EPS beat(4)-240.29%
Min EPS beat(4)-822.2%
Max EPS beat(4)-11.1%
EPS beat(8)3
Avg EPS beat(8)-129.98%
EPS beat(12)4
Avg EPS beat(12)-86.51%
EPS beat(16)6
Avg EPS beat(16)-65.14%
Revenue beat(2)1
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-5.05%
Max Revenue beat(2)1.74%
Revenue beat(4)2
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-5.05%
Max Revenue beat(4)2.25%
Revenue beat(8)2
Avg Revenue beat(8)-2.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.54%
Revenue beat(16)5
Avg Revenue beat(16)-1.17%
PT rev (1m)0%
PT rev (3m)19.92%
EPS NQ rev (1m)-1.17%
EPS NQ rev (3m)8.1%
EPS NY rev (1m)2.3%
EPS NY rev (3m)-3.56%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)-1.08%
Revenue NY rev (3m)-4.76%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.82
P/FCF N/A
P/OCF N/A
P/B 1.13
P/tB 1.24
EV/EBITDA N/A
EPS(TTM)-22.54
EYN/A
EPS(NY)-2.79
Fwd EYN/A
FCF(TTM)-7.34
FCFYN/A
OCF(TTM)-5.33
OCFYN/A
SpS15.34
BVpS11.2
TBVpS10.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -68.68%
ROE -274.38%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 197.38%
Cap/Sales 13.11%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.95
Quick Ratio 1.33
Altman-Z -1.29
F-Score3
WACC11.32%
ROIC/WACCN/A
Cap/Depr(3y)284.9%
Cap/Depr(5y)325.84%
Cap/Sales(3y)8.21%
Cap/Sales(5y)8.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-656.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-282.61%
EPS Next Y87.62%
EPS Next 2Y42.17%
EPS Next 3Y27.81%
EPS Next 5Y16.77%
Revenue 1Y (TTM)-69.71%
Revenue growth 3Y-22.86%
Revenue growth 5Y-8.76%
Sales Q2Q%-37.91%
Revenue Next Year17.14%
Revenue Next 2Y25.63%
Revenue Next 3Y22.92%
Revenue Next 5Y16.32%
EBIT growth 1Y-1168.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year83.26%
EBIT Next 3Y29.51%
EBIT Next 5Y17.89%
FCF growth 1Y-19.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-73.96%
OCF growth 3YN/A
OCF growth 5YN/A