SolarEdge shares fell 21% on June 25 after the company announced a $300 million convertible note offering. We lower our fair value estimate to $40 from $53 after lowering our long-term revenue and margin assumptions. We think shares are oversold following a sharp selloff year to date, but we expect continued near-term volatility. We reiterate our Very High uncertainty rating.
SolarEdge is one of the largest solar inverter manufacturers in the world based on revenue.
SolarEdge does not enjoy the same competitive position in Europe as it does in the US.
|
Metric
|
SEDG
|
GNRC
|
TSLA
|
|---|---|---|---|
Price/Earnings (Normalized) | 6.24 | 23.98 | 72.32 |
Price/Book Value | 0.64 | 3.47 | 9.78 |
Price/Sales | 0.64 | 2.08 | 7.27 |
Price/Cash Flow | — | 19.73 | 47.95 |
|
Metric
|
SEDG
|
GNRC
|
TSLA
|
|---|---|---|---|
Quick Ratio | 1.83 | 0.86 | 1.04 |
Current Ratio | 4.54 | 2.29 | 1.72 |
Interest Coverage | −149.63 | 4.12 | 38.06 |
|
Metric
|
SEDG
|
GNRC
|
TSLA
|
|---|---|---|---|
Return on Assets (Normalized) | −0.77% | 6.73% | 9.74% |
Return on Equity (Normalized) | −1.44% | 14.74% | 16.96% |
Return on Invested Capital (Normalized) | −1.05% | 10.09% | 13.43% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| First Solar Inc
FSLR
| Jgytkbrq | Hmmb | $26.8 Bil | |||
| Enphase Energy Inc
ENPH
| Wsjrcmpcj | Dcl | $14.3 Bil | |||
| NEXTracker Inc Ordinary Shares - Class A
NXT
| Bkhpmkkc | Wbsjp | $7.1 Bil | |||
| Xinyi Solar Holdings Ltd
XNYIF
| — | Htl | $4.4 Bil | |||
| Xinyi Solar Holdings Ltd ADR
XISHY
| — | Twqm | $4.4 Bil | |||
| GCL Technology Holdings Ltd
GCPEF
| — | Nwxl | $4.0 Bil | |||
| Sunrun Inc
RUN
| Mdywkjff | Zwgv | $2.9 Bil | |||
| Array Technologies Inc Ordinary Shares
ARRY
| — | Vhdpm | $1.6 Bil | |||
| Shoals Technologies Group Inc Ordinary Shares - Class A
SHLS
| Nxtwnycyj | Bknb | $1.1 Bil |
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