SOLAREDGE TECHNOLOGIES INC (SEDG)
US83417M1045 - Common Stock
Overall SEDG gets a fundamental rating of 4 out of 10. We evaluated SEDG against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. SEDG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, SEDG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SEDG had positive earnings in the past year.
SEDG had a negative operating cash flow in the past year.
In the past 5 years SEDG has always been profitable.
SEDG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.75%, SEDG is in line with its industry, outperforming 45.28% of the companies in the same industry.
SEDG's Return On Equity of 1.42% is in line compared to the rest of the industry. SEDG outperforms 47.17% of its industry peers.
The Return On Invested Capital of SEDG (2.82%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SEDG is significantly below the industry average of 11.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 1.42% | ||
| ROIC | 2.82% |
ROA(3y)2.93%
ROA(5y)4.87%
ROE(3y)6.22%
ROE(5y)9.92%
ROIC(3y)4.78%
ROIC(5y)6.8%
1.3 Margins
With a Profit Margin value of 1.15%, SEDG perfoms like the industry average, outperforming 44.34% of the companies in the same industry.
SEDG's Profit Margin has declined in the last couple of years.
The Operating Margin of SEDG (4.43%) is comparable to the rest of the industry.
SEDG's Operating Margin has declined in the last couple of years.
SEDG has a worse Gross Margin (25.65%) than 74.53% of its industry peers.
In the last couple of years the Gross Margin of SEDG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.43% | ||
| PM (TTM) | 1.15% | ||
| GM | 25.65% |
OM growth 3Y-22.59%
OM growth 5Y-21.53%
PM growth 3Y-50.68%
PM growth 5Y-39.08%
GM growth 3Y-6.73%
GM growth 5Y-5.51%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SEDG is destroying value.
SEDG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SEDG has been increased compared to 5 years ago.
SEDG has a better debt/assets ratio than last year.
2.2 Solvency
SEDG has an Altman-Z score of 2.52. This is not the best score and indicates that SEDG is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.52, SEDG is not doing good in the industry: 62.26% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.28 indicates that SEDG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.28, SEDG is in line with its industry, outperforming 40.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.52 |
ROIC/WACC0.25
WACC11.29%
2.3 Liquidity
A Current Ratio of 3.70 indicates that SEDG has no problem at all paying its short term obligations.
The Current ratio of SEDG (3.70) is comparable to the rest of the industry.
SEDG has a Quick Ratio of 2.08. This indicates that SEDG is financially healthy and has no problem in meeting its short term obligations.
SEDG has a Quick ratio of 2.08. This is comparable to the rest of the industry: SEDG outperforms 49.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
SEDG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.59%.
SEDG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.96% yearly.
The Revenue has decreased by -4.30% in the past year.
The Revenue has been growing by 26.00% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-31.59%
EPS 3Y-0.49%
EPS 5Y4.96%
EPS growth Q2Q-132.17%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y26.82%
Revenue growth 5Y26%
Revenue growth Q2Q-64.52%
3.2 Future
SEDG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.08% yearly.
Based on estimates for the next years, SEDG will show a small growth in Revenue. The Revenue will grow by 3.82% on average per year.
EPS Next Y-148.07%
EPS Next 2Y4.92%
EPS Next 3Y14%
EPS Next 5Y16.08%
Revenue Next Year-49.5%
Revenue Next 2Y-9.43%
Revenue Next 3Y-1.42%
Revenue Next 5Y3.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.29 indicates a correct valuation of SEDG.
Based on the Price/Earnings ratio, SEDG is valued cheaper than 86.79% of the companies in the same industry.
SEDG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.25.
SEDG is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SEDG is valued cheaper than 82.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.73 |
4.3 Compensation for Growth
SEDG's earnings are expected to grow with 14.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.88
EPS Next 2Y4.92%
EPS Next 3Y14%
5. Dividend
5.1 Amount
SEDG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SOLAREDGE TECHNOLOGIES INC
NASDAQ:SEDG (4/24/2024, 7:00:03 PM)
After market: 57.2 -0.66 (-1.14%)57.86
+1.09 (+1.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 1.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.43% | ||
| PM (TTM) | 1.15% | ||
| GM | 25.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-31.59%
EPS 3Y-0.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y-148.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y26.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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