One-glance verdict
Undervalued
$35.00 our estimate vs market $25.86
Wall Street consensus: $34.58 (-1.2% lower than our fair-value estimate)
26% below our estimate, below the bear case
Fundamentals snapshot
SolarEdge Technologies, Inc.
SEDG · NMS · Technology · Solar
Current price
$25.86
52-week range
$25.25 - $81.25
Market cap
$1.60B
Balance sheet
Healthy
-19.64x Concerning
Net cash $151.91M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 11.3% last year.
- Reward Free cash flow was positive in 7/10 years.
- Risk Return on equity was -50.6% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 9.2% to -10.0% over 3 years.
What this company does
SolarEdge Technologies, Inc.
SolarEdge Technologies sells smart electronics for solar power systems, like special boxes (power optimizers) and machines (inverters) that turn solar energy into electricity your home can use, plus batteries and EV chargers. Most of its money comes from selling these products to installers and distributors who then get them to homes and businesses using solar power. This matters because they are a key player in making solar energy more efficient and easier to manage for everyday users.
How the company got here
SolarEdge Technologies was founded in 2006 by five visionary founders who aimed to revolutionize solar energy harvesting. [1, 6] The company began mass production of its products in 2009 and went public on the Nasdaq stock exchange in March 2015, raising $126 million. [1] Over the years, SolarEdge expanded its offerings through strategic acquisitions, including a UPS manufacturer to establish its Critical Power division and an energy analytics company. [1] Despite facing challenges, such as becoming one of the biggest losing stocks in the S&P 500 in 2023, the company has continued to innovate and grow within the renewable energy sector. [1]
What it actually does
SolarEdge Technologies is an energy technology company that designs, develops, and sells optimized inverter systems for solar photovoltaic (PV) installations. [2, 10] Their core technology involves a system that includes DC power optimizers, inverters, and a cloud-based monitoring platform, all working together to maximize energy production from solar panels. [9] The company's products are used in residential, commercial, and utility-scale solar projects, helping to convert solar energy into usable electricity and manage its flow. [2, 8, 10] SolarEdge aims to make solar power more affordable and predictable by providing smart energy solutions. [15]
Solar Inverters and Power Optimizers
This is SolarEdge's foundational business, making up a significant portion of its revenue. [8] They produce DC-to-AC inverters, which are devices that convert the direct current (DC) electricity generated by solar panels into the alternating current (AC) electricity used by homes and businesses. [7, 11] Alongside inverters, they offer power optimizers, which are small devices attached to each solar panel. These optimizers maximize the energy output of each individual panel by addressing issues like shading or differences in panel performance, ensuring that the underperformance of one panel doesn't drag down the entire system's output. [6, 9, 11] This segment serves residential, commercial, and utility-scale solar installations. [8]
Energy Storage Solutions
This segment focuses on products that store the excess energy generated by solar panels for later use. [12] It includes home batteries, such as the 400V home battery and CSS-OD solution, which allow homeowners to store solar energy captured during the day and use it at night or during power outages. [7] These solutions enhance energy resilience and provide a more consistent power supply. [12] This business line is a growing part of SolarEdge's offerings, aiming to provide comprehensive energy management for homes and businesses. [7, 8]
EV Charging and Other Solutions
SolarEdge also offers electric vehicle (EV) chargers for both residential and commercial applications, integrating them into their smart energy ecosystem. [7, 8] Additionally, the company provides an energy optimization system called SolarEdge ONE, designed to manage energy flow efficiently. [7] They also offer grid services, which involve providing support to the electricity grid, and a cloud-based monitoring platform that allows system owners and installers to track real-time performance, energy production, and consumption. [2, 7] This segment represents SolarEdge's effort to provide a broader suite of smart energy technologies beyond just solar power generation. [8]
What management is betting on now
SolarEdge's current strategy, referred to as a "transformation and acceleration" plan for 2026, centers on driving profitable growth and expanding global market share. [5] A key priority is scaling their SolarEdge Nexis platform, which offers integrated solutions for solar, storage, and EV charging. [4, 5] The company is also investing in high-growth areas, notably power solutions for AI data centers, leveraging their expertise in high-voltage DC power. [5] Furthermore, SolarEdge is expanding its U.S. manufacturing capabilities to enhance domestic energy independence and create jobs. [4, 15]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$79.00K
FY2025 Q1
$23.71M
FY2025 Q2
$-9.05M
FY2025 Q3
$22.80M
FY2025 Q4
$43.34M
FY2026 Q1
$20.73M
FY2026 Q2
$3.13M
FY2026 Q3
$7.82M
Revenue
$326.08M
Net income
$-8.38M
Diluted EPS
-0.14
Operating cash flow
$20.39M
Free cash flow
$7.82M
Fetching…
Sources
Revenue
$346.25M
Net income
$-30.75M
Diluted EPS
-0.50
Operating cash flow
$11.42M
Free cash flow
$3.13M
Fetching…
Sources
Revenue
$310.50M
Net income
$-57.37M
Diluted EPS
-0.95
Operating cash flow
$24.43M
Free cash flow
$20.73M
Fetching…
Sources
Revenue
$335.36M
Net income
$-132.12M
Diluted EPS
-2.21
Operating cash flow
$52.63M
Free cash flow
$43.34M
Fetching…
Sources
Revenue
$340.18M
Net income
$-50.06M
Diluted EPS
-0.84
Operating cash flow
$25.61M
Free cash flow
$22.80M
Fetching…
Sources
Revenue
$289.43M
Net income
$-124.74M
Diluted EPS
-2.13
Operating cash flow
$-7.80M
Free cash flow
$-9.05M
Fetching…
Sources
Revenue
$219.48M
Net income
$-98.52M
Diluted EPS
-1.70
Operating cash flow
$33.82M
Free cash flow
$23.71M
Fetching…
Sources
Revenue
$170.75M
Net income
$238.91M
Diluted EPS
-5.45
Operating cash flow
$12.34M
Free cash flow
$79.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $35.00 vs current price $25.86
Wall Street consensus is the average analyst price target: $34.58 (-1.2% lower than our fair-value estimate).
Our most-likely fair value is $35.00 a share — about 35.4% above today's price of $25.86, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $151.9M - more cash than debt. Interest coverage -19.6x.
Net debt
$-151.91M
Interest coverage
-19.64x
SolarEdge Technologies, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SEDG
BASELINE
SolarEdge Technologies, Inc.
Total debt $403.18M Interest coverage -19.64x This is the baseline the peer rows are being compared against.
Total debt $614.56M Interest coverage 36.42x This peer still has a real interest-payment cushion, while SEDG does not.
Total debt $324.97M Interest coverage 36.18x This peer still has a real interest-payment cushion, while SEDG does not.
Total debt $1.42B Interest coverage 4.09x This peer still has a real interest-payment cushion, while SEDG does not.
Total debt $759.38M Interest coverage 2.70x This peer still has a real interest-payment cushion, while SEDG does not.
Total debt $15.34B Interest coverage -0.13x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SEDG
2 Rewards
3 Risks
Rewards
-
Revenue grew 11.3% last year.
-
Free cash flow was positive in 7/10 years.
Risks
-
Return on equity was -50.6% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 9.2% to -10.0% over 3 years.
-
Insider ownership is only 1.1% (peer median: 2.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
267.59x
P/B
3.78x
P/S
1.21x
EV/EBITDA
-11.98x
PEG ratio
4.61x
Profitability
How much profit each dollar creates
Gross margin
21.5%
Operating margin
-10.0%
Net margin
-17.3%
ROE
-50.6%
ROA
-4.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.95x
Current ratio
2.12x
Quick ratio
1.29x
Total debt
$403.18M
Total cash
$555.08M
Growth
How the business has been compounding
Revenue TTM
$1.32B
Revenue 5Y CAGR
-11.9%
EPS TTM
-3.80
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$108.86M
Free CF TTM
$80.79M
FCF margin
6.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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