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SOLAREDGE TECHNOLOGIES INC (SEDG) Stock Fundamental Analysis

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

16.85  +0.83 (+5.18%)

After market: 17.07 +0.22 (+1.31%)

Fundamental Rating

2

Taking everything into account, SEDG scores 2 out of 10 in our fundamental rating. SEDG was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of SEDG have multiple concerns. SEDG does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year SEDG has reported negative net income.
SEDG had a negative operating cash flow in the past year.
SEDG had positive earnings in 4 of the past 5 years.
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: 90.74% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -274.38%, SEDG is doing worse than 89.81% of the companies in the same industry.
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

The Profit Margin and Operating Margin and Gross Margin are not available for SEDG so they could not be analyzed.
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.
SEDG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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 -1.22, we must say that SEDG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -1.22, SEDG is not doing good in the industry: 78.70% of the companies in the same industry are doing better.
SEDG has a Debt/Equity ratio of 0.56. This is a neutral value indicating SEDG is somewhat dependend on debt financing.
SEDG has a Debt to Equity ratio of 0.56. This is in the lower half of the industry: SEDG underperforms 75.93% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF N/A
Altman-Z -1.22
ROIC/WACCN/A
WACC11.35%
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

A Current Ratio of 1.95 indicates that SEDG should not have too much problems paying its short term obligations.
The Current ratio of SEDG (1.95) is worse than 76.85% 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.
SEDG has a Quick ratio of 1.33. This is in the lower half of the industry: SEDG underperforms 77.78% of its industry peers.
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%.
The Revenue for SEDG has decreased by -69.71% in the past year. This is quite bad
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

The Earnings Per Share is expected to grow by 16.74% on average over the next years. This is quite good.
The Revenue is expected to grow by 18.81% on average over the next years. This is quite good.
EPS Next Y87.33%
EPS Next 2Y42.09%
EPS Next 3Y28.51%
EPS Next 5Y16.74%
Revenue Next Year18.42%
Revenue Next 2Y26.64%
Revenue Next 3Y23.13%
Revenue Next 5Y18.81%

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 2014 2016 2018 2020 2022 2024 2026 2028 2030 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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SEDG. No positive earnings are expected for the next year.
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 20 40 60

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 28.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.09%
EPS Next 3Y28.51%

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0

5. Dividend

5.1 Amount

No dividends for SEDG!.
Industry RankSector Rank
Dividend Yield N/A

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SOLAREDGE TECHNOLOGIES INC

NASDAQ:SEDG (3/7/2025, 8:00:02 PM)

After market: 17.07 +0.22 (+1.31%)

16.85

+0.83 (+5.18%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-19 2025-02-19/bmo
Earnings (Next)05-06 2025-05-06/amc
Inst Owners105.96%
Inst Owner Change2.47%
Ins Owners2.26%
Ins Owner Change2.47%
Market Cap990.44M
Analysts52.31
Price Target19.97 (18.52%)
Short Float %41.5%
Short Ratio4.75
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)18.21%
PT rev (3m)20.98%
EPS NQ rev (1m)2.21%
EPS NQ rev (3m)9.39%
EPS NY rev (1m)-1.83%
EPS NY rev (3m)-6.33%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-6.71%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.1
P/FCF N/A
P/OCF N/A
P/B 1.5
P/tB 1.65
EV/EBITDA N/A
EPS(TTM)-22.54
EYN/A
EPS(NY)-2.86
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 -1.22
F-Score3
WACC11.35%
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 Y87.33%
EPS Next 2Y42.09%
EPS Next 3Y28.51%
EPS Next 5Y16.74%
Revenue 1Y (TTM)-69.71%
Revenue growth 3Y-22.86%
Revenue growth 5Y-8.76%
Sales Q2Q%-37.91%
Revenue Next Year18.42%
Revenue Next 2Y26.64%
Revenue Next 3Y23.13%
Revenue Next 5Y18.81%
EBIT growth 1Y-1168.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year81.97%
EBIT Next 3Y29.7%
EBIT Next 5Y17.98%
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