SolarEdge Technologies Inc logo

SolarEdge Technologies Inc(SEDG)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$32.68
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for SEDG

09/25/2026: SEDG (1-star) is currently NOT-A-BUY. Pass it for now.

SolarEdge Technologies is a key player in the solar energy market, known for its DC-optimized inverter solutions that improve energy yields for residential and commercial systems. The company has historically benefited from a strong technological moat and a growing portfolio that includes battery storage and EV charging capabilities. Its primary growth opportunity lies in the transition toward unified home energy management ecosystems. However, the company faces significant risks from high channel inventory, macroeconomic sensitivity to interest rates, and stiff competition from microinverter rivals. It is currently a high-volatility stock that may suit growth-oriented investors who can tolerate cyclical industry pressures and monitor for signs of demand recovery.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers potential for long-term growth in the energy transition, but current cycle headwinds present significant uncertainty.
Momentum investorWeak fitThe stock has experienced extended downward price pressure and lacks a positive trend signal.
Value investorMixed fitWhile valuations have compressed from historical peaks, earnings volatility makes it difficult to assess a margin of safety.
Dividend investorWeak fitSolarEdge does not pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorWeak fitHigh volatility and sensitivity to interest rates and government policy make this a high-risk asset.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is highly sensitive to macroeconomic sentiment regarding interest rates and the renewable energy sector.
Valuation riskMediumValuation compression is occurring as the market reassesses long-term growth expectations.
Competition riskHighCompetition from microinverter providers and low-cost manufacturers impacts pricing power.
Business qualityMediumStrong technology moat exists, but current inventory and margin management challenges demonstrate operational hurdles.
Dividend incomeLow / noneThe company provides no income stream to offset price drawdowns.
Execution riskMedium / highManagement must successfully navigate supply chain normalization and market demand recovery.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -75.57%
Avg. Invested days 20
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
SEDG receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak unit economics, and weak price momentum.

Company Fundamentals

★★★★★
SEDG has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+77.6%) and solid cash generation (FCF margin 6.8%) are partially offset by soft profitability (net margin -34.2%), modest insider ownership of 1.20%.

Financial Health Rating

★★★★★
SEDG's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 42.9%). Profitability is weak (1 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is SEDG's strongest growth driver at +119.2% FY2025 versus FY2024 (strong, 5 stars). Revenue growth (+31.4%, solid) and earnings growth (+77.6%, strong) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 101.7% and approximately 98.8% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.20% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 13.72%
MENORA MIVTACHIM HOLDINGS LIMITED 4.51%
Amvescap Plc. 4.28%
UBS Group AG 4.24%
Vanguard Portfolio Management, LLC 3.70%

Unit Economics (Per $1K Revenue)

★★★★★
SEDG generates approximately $153 of gross profit, $-241 of operating income, and $68 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: -3.49% (Tax Credit)

Quantitative Style Profile

★★★★★
SEDG has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.01B USD
Price to earnings Ratio -
1Y Target Price 39.5
Price to earnings Ratio -
1Y Target Price 39.5
Volume (30-day avg) 3.1M shares
Beta 1.44
52 Weeks Range 28.21 - 81.25
Updated Date 09/27/2026
52 Weeks Range 28.21 - 81.25
Updated Date 09/27/2026
Dividends yield (FY) -
Basic EPS (TTM) -4.49

How Company Makes Money

Business areaWhat it includesRetail investor read
Solar Inverters & OptimizersDC-optimized string inverters and power optimizers for residential and commercial solar.This is the primary revenue engine providing hardware for solar installations.
Energy Storage & EVLithium-ion batteries and EV charging hardware.This segment represents the diversification strategy to capture home energy management spending.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE -
Forward PE 277.78
Enterprise Value 4.38B
Price to Sales(TTM) 1.51
Enterprise Value 4.38B
Price to Sales(TTM) 1.51
Enterprise Value to Revenue 3.43
Enterprise Value to EBITDA 52.7
Shares Outstanding 61.53M
Shares Floating 60.81M
Shares Outstanding 61.53M
Shares Floating 60.81M
Percent Insiders 1.2
Percent Institutions 101.69

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About SolarEdge Technologies Inc

Exchange NASDAQ
Headquarters -
IPO Launch date 2015-03-26
CEO & Director Mr. Yehoshua Nir
Sector Technology
Industry Solar
Full time employees 3576
Full time employees 3576

SolarEdge Technologies, Inc., together with its subsidiaries, operates as an energy technology company in the United States, Europe, and internationally. The company offers power optimizers and DC-to-AC inverters; Storage Solutions, such as home battery 400V and CSS-OD solution; EV chargers for residential and commercial applications; SolarEdge ONE, an energy optimization system; and cloud-based monitoring platform. It also provides mySolarEdge app, which enables system owners to track their real-time system production and household energy consumption; SolarEdge Go app, a mobile application for SolarEdge installers, integrating installation, management, and service capabilities; designer platform, a web-based tool; and mapper application for registering the physical layout of new PV sites. In addition, the company offers SetApp application to activate and configure SolarEdge inverters; grid services; and pre-sales support, ongoing trainings, and technical support before, during, and after installation based on its operation structure. It serves solar installers, solar distributors, and electrical equipment wholesalers, as well as providers of PV systems to residential and commercial end users through distributors and electrical equipment wholesalers, and directly to solar installers and engineering, procurement, and construction firms, or EPCs. SolarEdge Technologies, Inc. was incorporated in 2006 and is headquartered in Herzliya Pituach, Israel.