SolarEdge Technologies, Inc. (SEDG, Financial) recently received an upgrade from Northland analyst Gus Richard, moving from an "Underperform" to a "Market Perform" rating. The analyst also adjusted the price target down to $12.50 from $15, reflecting the stock's significant decline since the previous downgrade in February.
The analysis forecasts that SolarEdge will conclude the 2025 calendar year with approximately $350 million in net cash. Despite the company's financial challenges, the analyst does not anticipate any bankruptcy filings from SolarEdge. While Northland is not currently endorsing the purchase of additional shares, the firm believes the downturn in the stock's price has reached a bottom.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 28 analysts, the average target price for SolarEdge Technologies Inc (SEDG, Financial) is $17.97 with a high estimate of $100.00 and a low estimate of $3.90. The average target implies an upside of 53.43% from the current price of $11.72. More detailed estimate data can be found on the SolarEdge Technologies Inc (SEDG) Forecast page.
Based on the consensus recommendation from 33 brokerage firms, SolarEdge Technologies Inc's (SEDG, Financial) average brokerage recommendation is currently 3.4, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SolarEdge Technologies Inc (SEDG, Financial) in one year is $53.76, suggesting a upside of 358.9% from the current price of $11.715. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SolarEdge Technologies Inc (SEDG) Summary page.
SEDG Key Business Developments
Release Date: February 19, 2025
- Total Revenue: $196.2 million for Q4 2024.
- Solar Segment Revenue: $189 million.
- US Solar Revenue: $114 million, representing 60% of solar revenues.
- European Solar Revenue: $44.8 million, representing 24% of solar revenues.
- International Solar Revenue: $30.3 million, representing 16% of solar revenues.
- Total Megawatt Shipments: 895 megawatts.
- Battery Shipments: 130-megawatt hours, primarily to Europe.
- ASP per Watt (excluding batteries): $20.8, up 2% from Q3.
- Blended ASP per kWh on PV Attached Batteries: $262, down from $317 in Q3.
- Non-Solar Business Revenue: $6.9 million.
- GAAP Gross Margin: Negative 57.2% for Q4.
- Non-GAAP Gross Margin: 39.5% for Q4.
- Non-GAAP Operating Expenses: $106.8 million for Q4.
- GAAP Net Loss: $287.4 million for Q4.
- Non-GAAP Net Loss: $202.5 million for Q4.
- Net Loss per Share: $5 for Q4.
- Non-GAAP Net Loss per Share: $3.52 for Q4.
- Free Cash Flow: $26 million for Q4.
- Cash and Equivalents: Approximately $767 million as of December 31, 2024.
- Inventory Level: $645.9 million, net of reserves.
- Q1 2025 Revenue Guidance: $195 million to $215 million.
- Q1 2025 Non-GAAP Gross Margin Guidance: 6% to 10%.
- Q1 2025 Non-GAAP Operating Expenses Guidance: $98 million to $103 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SolarEdge Technologies Inc (SEDG, Financial) generated approximately $26 million in free cash flow in Q4 2024, exceeding forecasts.
- The company is ramping up US manufacturing, creating nearly 2,000 jobs and increasing production capacity for inverters and optimizers.
- SolarEdge Technologies Inc (SEDG) is focusing on innovation with the introduction of new products like the SolarEdge ONE Controller and the Nexus residential portfolio.
- The company has strengthened its financial position by selling 45X advanced manufacturing production credits, enhancing liquidity.
- SolarEdge Technologies Inc (SEDG) is implementing cost-saving measures, including headcount reductions and focusing on core projects, to improve operational efficiency.
Negative Points
- SolarEdge Technologies Inc (SEDG) reported disappointing financial results in recent quarters, with a GAAP net loss of $287.4 million in Q4 2024.
- The company faced a $115 million inventory write-down due to weaker-than-expected recovery in the European market.
- There is uncertainty in the US market due to potential policy changes, impacting sales and market conditions.
- SolarEdge Technologies Inc (SEDG) had to revise previously reported revenues and loans receivables, impacting financial statements.
- The European market remains challenged with macroeconomic headwinds, and the company expects a slight market decline in 2025.
