One-glance verdict
Undervalued
$4.13 our estimate vs market $0.87
Wall Street consensus: $2.83 (-31.6% lower than our fair-value estimate)
79% below our estimate, below the bear case
Fundamentals snapshot
Tigo Energy, Inc.
TYGO · NCM · Technology · Solar
Current price
$0.87
52-week range
$0.79 - $5.33
Market cap
$66.57M
Balance sheet
Healthy
-0.41x Concerning
Net cash $10.43M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 7.4% last year.
- Reward Returns 43.1% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 1/10 years.
- Risk Operating margin compressed from -1.1% to -6.6% over 3 years.
What this company does
Tigo Energy, Inc.
Tigo Energy sells smart hardware and software that make solar panel systems more efficient and store energy for later use. The company primarily makes money selling its Module-Level Power Electronics (devices that boost the energy output from each individual solar panel) and home battery systems to distributors and solar installers. This is important because as more homes and businesses adopt solar, there's a growing need for products that can maximize energy production and provide backup power.
How the company got here
Tigo Energy was founded in Silicon Valley in 2007 by a team of experienced technologists who developed the first generation of 'Smart Module Optimizer' technology for the solar industry. The company's initial focus was on developing module-level power electronics (MLPE), which are small devices that attach to individual solar panels to improve their performance. Over the years, Tigo expanded internationally, secured strategic investors, and eventually became an independent company. It has since grown to offer a complete range of solar and energy storage solutions for homes and businesses.
What it actually does
Tigo Energy creates smart hardware and software that make solar panel systems safer, more efficient, and easier to manage. Think of them as providing the 'brains' for a solar installation. Their products can squeeze more energy out of each individual solar panel, allow you to see how your system is performing in real-time on your phone or computer, and provide important safety features. They sell these solutions to solar installers and distributors, who then use them in residential, commercial, and even large-scale utility projects.
Module-Level Power Electronics (MLPE)
This is Tigo's core business and represents the largest portion of its revenue. MLPEs are small electronic devices that are attached to each solar panel in a system. Their job is to maximize the energy production of each panel, which is especially helpful if some panels are affected by shade or debris. They also provide critical safety features, like the ability to quickly shut down the high voltage of the panels in an emergency, and allow for detailed monitoring of each panel's performance. Solar installers buy these devices to enhance the solar systems they build for their customers.
GO Energy Storage Systems (ESS)
This is a growing part of Tigo's business that focuses on storing the solar energy that is produced. The GO ESS is a complete package that includes batteries, an inverter (a device that converts the solar energy into usable electricity for your home), and other components needed to store solar power for later use. This allows homeowners to have backup power during a grid outage and can help them save money by using stored solar energy when electricity from the utility company is most expensive. These systems are sold to homeowners through Tigo's network of installers.
Energy Intelligence (EI) Platform
This is the software side of Tigo's business, which brings all their hardware products together. The EI platform is a cloud-based monitoring service that allows both installers and system owners to see exactly how their solar and storage systems are performing, down to the individual panel. It helps in quickly identifying and diagnosing any issues remotely, which can save on maintenance costs (the expense of keeping equipment in good working order). This software is a key part of Tigo's hardware sales and provides ongoing value to their customers.
What management is betting on now
Tigo's leadership is focused on expanding its complete solar-plus-storage solutions, especially for residential customers. They are also concentrating on 'repowering,' which means upgrading older solar installations with new, more efficient technology like Tigo's. The company is establishing U.S.-based manufacturing to meet the demand for domestically produced products and take advantage of policy tailwinds (government actions that help a particular industry). By offering a fully integrated system of hardware and software, Tigo aims to make solar energy systems more powerful, flexible, and easier to manage for everyone.
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 Q3
$-874.00K
FY2024 Q4
$524.00K
FY2025 Q2
$7.53M
FY2025 Q3
$1.39M
FY2025 Q4
$1.18M
FY2026 Q1
$-9.46M
FY2026 Q2
$-1.33M
Revenue
$25.41M
Net income
$2.17M
Diluted EPS
0.03
Operating cash flow
$-1.04M
Free cash flow
$-1.33M
Fetching…
Sources
Revenue
$25.20M
Net income
$-1.75M
Diluted EPS
-0.02
Operating cash flow
$-9.25M
Free cash flow
$-9.46M
Fetching…
Sources
Revenue
$30.03M
Net income
$11.72M
Diluted EPS
0.18
Operating cash flow
$1.62M
Free cash flow
$1.18M
Fetching…
Sources
Revenue
$30.61M
Net income
$-2.17M
Diluted EPS
-0.03
Operating cash flow
$1.43M
Free cash flow
$1.39M
Fetching…
Sources
Revenue
$24.05M
Net income
$-4.43M
Diluted EPS
-0.07
Operating cash flow
$7.77M
Free cash flow
$7.53M
Fetching…
Sources
Revenue
$18.84M
Net income
$-7.00M
Diluted EPS
-0.11
Operating cash flow
$-530.00K
Free cash flow
—
Fetching…
Sources
Revenue
$17.27M
Net income
$-26.80M
Diluted EPS
-0.44
Operating cash flow
$1.05M
Free cash flow
$524.00K
Fetching…
Sources
Revenue
$14.24M
Net income
$-13.12M
Diluted EPS
-0.22
Operating cash flow
$-535.00K
Free cash flow
$-874.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $4.13 vs current price $0.87
Wall Street consensus is the average analyst price target: $2.83 (-31.6% lower than our fair-value estimate).
Our most-likely fair value is $4.13 a share — about 376.2% above today's price of $0.87, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $10.4M - more cash than debt. Interest coverage -0.4x.
Net debt
$-10.43M
Interest coverage
-0.41x
Tigo Energy, 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
TYGO
BASELINE
Tigo Energy, Inc.
Total debt $6.48M Interest coverage -0.41x This is the baseline the peer rows are being compared against.
Total debt $407.35M Interest coverage -19.64x Neither company has much profit cushion over interest right now.
Total debt $613.36M Interest coverage 36.42x This peer still has a real interest-payment cushion, while TYGO does not.
Total debt $1.41B Interest coverage 4.09x This peer still has a real interest-payment cushion, while TYGO does not.
Total debt $233.81M Interest coverage 5.64x This peer still has a real interest-payment cushion, while TYGO does not.
Total debt $752.89M Interest coverage 2.70x This peer still has a real interest-payment cushion, while TYGO does not.
What you should know
The case for and against TYGO
3 Rewards
1 Risk
Rewards
-
Revenue grew 7.4% last year.
-
Returns 43.1% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 1/10 years.
Risks
-
Operating margin compressed from -1.1% to -6.6% over 3 years.
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)
5.42x
Forward P/E
-18.25x
P/B
1.61x
P/S
0.60x
EV/EBITDA
-31.14x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
42.4%
Operating margin
-6.6%
Net margin
9.0%
ROE
43.1%
ROA
-2.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.15x
Current ratio
3.04x
Quick ratio
1.70x
Total debt
$6.48M
Total cash
$16.91M
Growth
How the business has been compounding
Revenue TTM
$111.25M
Revenue 5Y CAGR
-15.6%
EPS TTM
0.16
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-7.24M
Free CF TTM
$9.66M
FCF margin
8.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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