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SolarEdge Technologies Inc

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SolarEdge Technologies Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-12

Snapshot

  • Gross margin collapsed to 0.9% TTM vs industry median 41.6% - cost structure broken with 1.04B cost on 1.05B revenue[Gross Margin TTM]
  • 531M inventory (51% of current assets) vs 286M receivables signals demand destruction and potential write-down risk[Inventory]
  • ROE of -78% TTM with equity eroding to 480M - burning through capital at unsustainable rate[Return on Equity TTM]

Watch Triggers

  • Gross Margin TTM: Recovery above 10%Signals pricing power return and inventory clearing without fire-sale losses
  • Inventory: Decline below 400M without impairmentIndicates demand recovery vs forced liquidation - key to survival thesis
  • Cash and Equivalents: Falls below 300MTriggers capital raise or strategic sale discussion within 6-9 months

Bull Case

P/S of 1.67x vs industry median 3.0x prices in significant distress - any margin recovery creates upside leverage

P/S RatioGross Margin TTM

Positive FCF of 63M TTM despite losses suggests working capital can fund near-term survival while restructuring

Free Cash Flow TTMWorking Capital

Bear Case

Operating margin -45% TTM with 232M R&D spend - must cut core capabilities or continue burning cash

Operating Margin TTMR&D TTM

Inventory of 531M at risk of obsolescence in fast-moving solar tech - potential 200M+ write-down

InventoryGross Margin TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

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Forward Thesis

Cash runway of 12-18 months without turnaround - restructuring or capital raise likely

3-12mhigh
  • 440M cash vs -471M operating loss TTM
  • 63M positive FCF TTM masks working capital liquidation
  • 416M debt with 87% debt-to-equity
Cash 440M, operating loss 471M TTMWorking capital 993M being consumedLong-term debt 402M coming due

Revenue stabilization requires gross margin recovery above 15% - currently at 0.9%

1-3ymed
  • R&D spend of 232M (22% of revenue) unsustainable at current margins
  • 3Y revenue CAGR -26% shows structural decline
  • Industry median gross margin 41.6%
Gross margin 0.9% vs 41.6% medianRevenue down 26% 3Y CAGROpEx 480M on 1.05B revenue

Valuation Context

Caveats

Data Partners
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Fundamental company data provided by Morningstar, updated daily.

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