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SolarEdge Technologies, Inc. (SEDG) Q2 2021 Report Analysis


Filing Date

2021-08-04

Grade by Sector

60 / 100

Rating

Country

Israel

Exchange

NasdaqGS

Market Cap

$15.3B

Sector

Information Technology

Industry

Semiconductors and Semiconductor Equipment

Rating

Grade by Sector

Filing Date

Market Cap

Country

Exchange

Sector

Industry

60 / 100

2021-08-04

$15.3B

Israel

NasdaqGS

Information Technology

Semiconductors and Semiconductor Equipment

Company Highlights


Parameter Value Change Score
Assets 2,564.32 4% 65
Capital Expenditure -138.35 -11% 61
Cash & Equivalents 524.11 -24% 45
Equity 1,177.79 7% 47
Liabilities 1,386.53 2% 65
EBITDA 197.92 16% 62
Total Revenues 1,581.75 10% 57
Parameter Value Change Score
Free Cashflow -0.39 -234% 39
Cashflow 95.74 -73% 66
Asset Turnover 0.76 5% 68
Price to Book 12.26 -10% 77
Return on Equity 12.99 0% 82

* All values are TTM

Report Summary

The following analysis of SolarEdge Technologies, Inc.'s expected performance over the next 3 months is based on a thorough AI-powered analysis of their income statement, balance sheet, & statement of cash flows. In addition, numerous critical general factors and ratios were also utilized. First, analysis of the balance sheet factors followed closely to the benchmark. Next, the income statement parameters followed closely to the benchmark in the above time frame. Third, cash flow parameters kept up with the market benchmark. Last, the most impactful financial ratios indicate that in the upcoming quarter the company's growth is likely to match expectation and not outperform the benchmark. All in all, our analysis of SolarEdge Technologies, Inc. produced a cumulative strength of 60.

  •  SEDG
  •  Industry average

Balance Sheet Analysis

Reviewing the metrics in the balance sheet underscored the importance of certain key numbers that provide some of the most meaningful signals into forecasting performance in the coming months. Typically, the balance sheet factors contribute up to 33.8% of the likelihood that a company will beat its benchmark performance in the course of the near term. In particular, reviewing SolarEdge Technologies, Inc.'s debt service capabilities forecasts below average execution in terms of cash and cash equivalents. Generally, the debt service capabilities factors impact up to 1.5% of the chances of a company to beat its benchmark. Next, their assets signals standard results related to assets changes. A company's assets can be responsible for up to 9.1% of the chances of the company to beat its benchmark. Third, looking at their debt structure suggests standard performance in terms of liabilities movement. Statistically, the debt structure factors influence approximately up to 9.1% of the probability that a company will beat its benchmark. Moreover, the company's shows quite unimpressive results with respect to shareholders' equity and intangible assets adjustments. Intangible assets and technical changes affect up to 14.1% of the likelihood that a company will beat its benchmark performance during the next quarter. With all these factors considered, SolarEdge Technologies, Inc.'s balance sheet received a total score of 57.

  •  SEDG
  •  Industry average
Parameter Value Change Score
Assets 2,564.32 4% 65
Capital Expenditure -138.35 -11% 61
Cash & Equivalents 524.11 -24% 45
Equity 1,177.79 7% 47
Liabilities 1,386.53 2% 65
All values are TTM

Income Statement Analysis

Examination of the company's income statement underscored the importance of several specific metrics that effect the performance for the coming months. First, the company's net income forecasts modest results going into earnings movement. Generally, a company's net income contributes 19.8% of the chances of a company to over-perform the market Further, the company's cost of sales forecasts modest momentum in terms of capital expenditure growth. Typically, the Company's cost of sales contribute roughly 8.0% of the likelihood that the company will beat its benchmark performance. Third, looking at their revenue shows neutral results in terms of revenue momentum. Revenue momentum will impact around 11.8% of the chances of the company to beat its benchmark performance throughout the next quarter. As such, our evaluation of the company's income statement gave the total score of 63.

  •  SEDG
  •  Industry average
Parameter Value Change Score
EBITDA 197.92 16% 62
Total Revenues 1,581.75 10% 57
All values are TTM

Cash Flow Analysis

Looking at the changes in their cash flow focused our attention on a number of key changes in the numbers that provide some of the most meaningful signals into forecasting performance for the next quarter. First, analysis of SolarEdge Technologies, Inc.'s flow of cash coming from operations, finance, and investments found unexceptional momentum with connection to cash flow momentum. The flow of cash coming from operations, finance, and investments factors can be responsible for up to 2.3% of the chances of a company to beat its benchmark performance. Next, the companys net cash flow indicates sub-par sentiment going into free cash flow growth. Historically, these factors influence roughly 6.3% of the company's likelihood to over-perform in the coming quarters. Our bottom line assessment of their cash flow warranted the weighted score of 59.

  •  SEDG
  •  Industry average
Parameter Value Change Score
Free Cashflow -0.39 -234% 39
Cashflow 95.74 -73% 66
All values are TTM

General & Ratios Analysis

Our cumulative analysis of these reports the most critical factors in these reports informs our broader perspective of SolarEdge Technologies, Inc.'s attractiveness for the near term. Drilling into their metrics connected to general factors conveys average results concerning macroeconomic environment. Particularly, looking closer at their health and sustainability signals satisfactory execution with respect to book value momentum. In general, these factors will contribute up to 25.4% of the probability that the company will over-perform the market. Looking deeper into taking in consideration their capital efficiency suggests passable performance concerning assets factors momentum. Statistically, the capital efficiency factors will impact around 1.7% of the company's likelihood to over-perform the market in the course of the near term. Fourth, diving into investors' interest suggests solid momentum going into return factors momentum. Statistically, these factors contribute roughly up to 5.1% of the probability that a company will over-perform in the course of the next quarter. In particular, taking in consideration SolarEdge Technologies, Inc.'s capital efficiency implies passable performance concerning assets factors momentum. Generally, the capital efficiency factors influence approximately 1.7% of the chances of a company to beat the market during the current market. All factors considered, our bottom line evaluation of SolarEdge Technologies, Inc.'s general factors and ratios produced the ranking of 77.

  •  SEDG
  •  Industry average
Parameter Value Change Score
Asset Turnover 0.76 5% 68
Price to Book 12.26 -10% 77
Return on Equity 12.99 0% 82
All values are TTM

This report is intended for general guidance and information purposes only and under no circumstances is tailored to a specific factor or variable related to its reader or intended to be used or considered as financial or investment advice, a solicitation of any offer, a recommendation, or an offer to sell or buy any securities or other form of a financial asset. For the full disclaimer, click here.