# SolarEdge Technologies (SEDG.US)

Canonical: https://gigainvestors.com/s/SEDG

Analysis as of: 2026-10-16T07:31:50.507Z. Financial observations: FY2015–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $31.43 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 3

- Operating margin variation: 3.87×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.15×

- FY2018: 0.15×

- FY2019: 0.13×

- FY2020: 0.10×

- FY2021: 0.11×

- FY2022: 0.05×

- FY2023: 0.01×

- FY2024: -1.90×

- FY2025: -0.24×

- LTM to Jun 2026: -0.10×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 16.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 18.4%

- ROIC, second-lowest year: -101.1%

- Typical minus recent gross margin: 16.5 pp

- Typical gross margin (annual median): 31.8%

- Recent gross margin (lower of latest and 3-year median): 15.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.3%

- ROIC including acquisitions, ten-year median: 8.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 50.1%

- FY2017: 48.2%

- FY2018: 56.3%

- FY2019: 36.8%

- FY2020: 21.2%

- FY2021: 15.6%

- FY2022: 5.8%

- FY2023: 1.2%

- FY2024: -172.7%

- FY2025: -101.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$2.1B

- Net income, five-year total: -$1.9B

- Return on incremental invested capital: -23.6%

- Working capital / revenue, annual change: 5.6 pp

- Working capital / revenue, change between three-year averages: 43.6 pp

- Working capital / revenue, final three-year average: 69.1%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $143M

- FY2022: $94M

- FY2023: -$79M

- FY2024: -$1.9B

- FY2025: -$398M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 50.1% vs -101.1%

- Per-share earnings: 1.16 to -6.88 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.0%

- Ordinary dilution, 5-year annual growth: 2.2%

- Market cap gain: $1.2B

- Cumulative retained earnings: -$1.4B

- Diluted shares, 10-year annual growth: 3.0%

- Diluted shares, 5-year annual growth: 2.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$8.04

- Per-share value, starting three-year median: $1.16

- Per-share value, ending three-year median: -$6.88

- Buybacks concentrated in cheaper years (correlation): -0.40

- Average buyback yield: 1.7%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Acquisition spending: $161M

- Cumulative net income, 10 years: -$1.4B

- ROIC, first three-year median: 50.1%

- ROIC, last three-year median: -101.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.16

- FY2017: $1.85

- FY2018: $2.69

- FY2019: $2.92

- FY2020: $2.66

- FY2021: $3.02

- FY2022: $1.61

- FY2023: $0.60

- FY2024: -$31.64

- FY2025: -$6.88

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -23.4%

- Receivables to sales index (DSRI): 0.59×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 88.8%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.13×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.4%

- FY2017: -8.2%

- FY2018: -6.2%

- FY2019: -7.5%

- FY2020: -3.4%

- FY2021: -1.5%

- FY2022: 1.5%

- FY2023: 4.7%

- FY2024: -56.8%

- FY2025: -23.4%

## Holders

- [Andreas Halvorsen](https://gigainvestors.com/vg): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 91% since Jul 2022 · "SolarEdge forecasts weaker Q3 as US residential market remains challenging" (finance.yahoo.com, Aug 2026) · sales +12.5%

Story as of 2026-10-16T09:59:34.002Z; price observation 2026-10-15.

- 2025-08-07: Earnings Snapshot: SolarEdge Technologies tops Q2 estimates, Q3 revenue guidance beats ([seekingalpha.com](https://seekingalpha.com/news/4481301-earnings-snapshot-solaredge-technologies-tops-q2-estimates-q3-revenue-guidance-beats?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-06: SolarEdge Stock Jumps 30% After Infineon Deal and Signs of a Major Business Turnaround ([finance.yahoo.com](https://finance.yahoo.com/news/solaredge-stock-jumps-30-infineon-112320370.html))

- 2026-02-18: SolarEdge Technologies Q4 Earnings Top Estimates, Revenues Rise Y/Y ([finance.yahoo.com](https://finance.yahoo.com/news/solaredge-technologies-q4-earnings-top-170200941.html))

- 2026-05-15: SolarEdge (SEDG) Climbs 17.5% on Demand Growth Hopes Ahead of Tax Credit Deadline ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/solaredge-sedg-climbs-17-5-031927384.html))

- 2026-08-05: SolarEdge forecasts weaker Q3 as US residential market remains challenging ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/solaredge-forecasts-weaker-q3-us-165300837.html))

### Sales · FY2025–2026

sales +12.5%; source https://www.sec.gov/Archives/edgar/data/1419612/000117891326000632/zk2634374.htm; observed 2026-02-25.

- FY2017: $607M 

- FY2018: $937M 

- FY2019: $1.4B 

- FY2020: $1.5B 

- FY2021: $2.0B 

- FY2022: $3.1B 

- FY2023: $3.0B 

- FY2024: $901M 

- FY2025: $1.2B 

- FY2026: $1.3B 

### Gross margin · FY2025

gross margin 15.3%; source https://www.sec.gov/Archives/edgar/data/1419612/000117891326000632/zk2634374.htm; observed 2026-02-25.

- FY2016: 33.7% 

- FY2017: 35.4% 

- FY2018: 34.1% 

- FY2019: 33.6% 

- FY2020: 31.6% 

- FY2021: 32.0% 

- FY2022: 27.2% 

- FY2023: 23.6% 

- FY2025: 15.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in solar; annual sales are USD 1.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1419612/000117891326000632/zk2634374.htm (filed 2026-02-25); FY2025: revenue 1184444000; grossProfit 181595000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); SEDG.US: 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.

### Why customers stay

It earns 18.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 23.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = -97.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1419612/000117891326000632/zk2634374.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 15.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2016,0.501107347554814],[2017,0.481505232495868],[2018,0.5626983203856215],[2019,0.36781265453147555],[2020,0.21184920671454385],[2021,0.15643667934422703],[2022,0.05816257165418969],[2023,0.01166182937201741],[2024,-1.7270428104696445],[2025,-1.0110275432762001]]; median 0.18414294302938544. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2016: growth capex 6107000; upkeep 5518000; owner earnings 50762000. Growth capex / owner earnings = 0.12030652850557504.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2017: growth capex 8675070.781033734; upkeep 12706929.218966266; owner earnings 78620070.78103374. Growth capex / owner earnings = 0.11034168113629456.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2018: growth capex 25989000; upkeep 12619000; cash acquisitions 94737000; owner earnings 128833000. Growth capex plus acquisitions / owner earnings = 0.9370735758695365.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2019: growth capex 45667000; upkeep 26895000; cash acquisitions 38435000; owner earnings 146549000. Growth capex plus acquisitions / owner earnings = 0.5738831380630369.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2020: growth capex 4521299.7966976315; upkeep 122268700.20330237; cash acquisitions 0; owner earnings 49887299.79669763. Growth capex plus acquisitions / owner earnings = 0.09063027694669748.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2021: growth capex 83793313.81076618; upkeep 65457686.189233825; cash acquisitions 0; owner earnings 143247313.81076616. Growth capex plus acquisitions / owner earnings = 0.5849555679728805.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2022: growth capex 119665000; upkeep 49676000; cash acquisitions 0; owner earnings 93779000. Growth capex plus acquisitions / owner earnings = 1.2760319474509219.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 1.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); SEDG.US SharesStats.PercentInsiders = 1.117 percentage points; cache date 2026-10-15.

### What the price says

The price is 1.6 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Closing price 31.43 USD; reporting-to-trading FX 1; FY2025 annual sales per share 20.090856692920866; price multiple 1.5643932202788817. FY2025 cash earnings/share -6.757835465320812. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $13.70 per share

- 2016-11: $13.20 per share

- 2016-12: $12.40 per share

- 2017-01: $12.95 per share

- 2017-02: $14.65 per share

- 2017-03: $15.60 per share

- 2017-04: $16.15 per share

- 2017-05: $18.60 per share

- 2017-06: $20.00 per share

- 2017-07: $22.95 per share

- 2017-08: $26.75 per share

- 2017-09: $28.55 per share

- 2017-10: $32.85 per share

- 2017-11: $36.40 per share

- 2017-12: $37.55 per share

- 2018-01: $35.90 per share

- 2018-02: $50.05 per share

- 2018-03: $52.60 per share

- 2018-04: $52.65 per share

- 2018-05: $55.85 per share

- 2018-06: $47.85 per share

- 2018-07: $53.25 per share

- 2018-08: $47.95 per share

- 2018-09: $37.65 per share

- 2018-10: $38.73 per share

- 2018-11: $38.93 per share

- 2018-12: $35.10 per share

- 2019-01: $43.79 per share

- 2019-02: $42.26 per share

- 2019-03: $37.68 per share

- 2019-04: $44.30 per share

- 2019-05: $53.58 per share

- 2019-06: $62.46 per share

- 2019-07: $65.23 per share

- 2019-08: $81.92 per share

- 2019-09: $83.72 per share

- 2019-10: $84.96 per share

- 2019-11: $81.61 per share

- 2019-12: $95.09 per share

- 2020-01: $97.86 per share

- 2020-02: $124.72 per share

- 2020-03: $81.88 per share

- 2020-04: $111.59 per share

- 2020-05: $141.90 per share

- 2020-06: $138.78 per share

- 2020-07: $175.10 per share

- 2020-08: $221.15 per share

- 2020-09: $238.35 per share

- 2020-10: $257.69 per share

- 2020-11: $277.98 per share

- 2020-12: $319.12 per share

- 2021-01: $288.33 per share

- 2021-02: $298.31 per share

- 2021-03: $287.44 per share

- 2021-04: $263.54 per share

- 2021-05: $258.01 per share

- 2021-06: $276.37 per share

- 2021-07: $259.48 per share

- 2021-08: $289.78 per share

- 2021-09: $265.22 per share

- 2021-10: $354.68 per share

- 2021-11: $327.76 per share

- 2021-12: $280.57 per share

- 2022-01: $238.22 per share

- 2022-02: $319.42 per share

- 2022-03: $322.37 per share

- 2022-04: $250.41 per share

- 2022-05: $272.79 per share

- 2022-06: $273.68 per share

- 2022-07: $360.13 per share

- 2022-08: $275.97 per share

- 2022-09: $231.46 per share

- 2022-10: $230.03 per share

- 2022-11: $298.86 per share

- 2022-12: $283.27 per share

- 2023-01: $319.13 per share

- 2023-02: $317.92 per share

- 2023-03: $303.95 per share

- 2023-04: $285.63 per share

- 2023-05: $284.83 per share

- 2023-06: $269.05 per share

- 2023-07: $241.46 per share

- 2023-08: $162.57 per share

- 2023-09: $129.51 per share

- 2023-10: $75.95 per share

- 2023-11: $79.38 per share

- 2023-12: $93.60 per share

- 2024-01: $66.50 per share

- 2024-02: $67.17 per share

- 2024-03: $70.98 per share

- 2024-04: $58.65 per share

- 2024-05: $48.99 per share

- 2024-06: $25.26 per share

- 2024-07: $28.86 per share

- 2024-08: $24.33 per share

- 2024-09: $22.91 per share

- 2024-10: $17.06 per share

- 2024-11: $15.80 per share

- 2024-12: $13.60 per share

- 2025-01: $13.10 per share

- 2025-02: $16.49 per share

- 2025-03: $16.18 per share

- 2025-04: $12.24 per share

- 2025-05: $17.86 per share

- 2025-06: $20.40 per share

- 2025-07: $25.66 per share

- 2025-08: $33.82 per share

- 2025-09: $37.00 per share

- 2025-10: $35.09 per share

- 2025-11: $36.53 per share

- 2025-12: $28.85 per share

- 2026-01: $30.95 per share

- 2026-02: $35.40 per share

- 2026-03: $51.05 per share

- 2026-04: $42.86 per share

- 2026-05: $76.35 per share

- 2026-06: $58.44 per share

- 2026-07: $41.20 per share

- 2026-08: $32.20 per share

- 2026-09: $31.87 per share

- 2026-10: $31.43 per share

## Annual estimated value (USD per share)

- FY2019: low $38.65 per share, central $43.18 per share, high $49.21 per share

- FY2020: low $50.92 per share, central $55.33 per share, high $61.19 per share

- FY2021: low $51.19 per share, central $56.62 per share, high $63.86 per share

- FY2022: low $59.24 per share, central $65.12 per share, high $72.96 per share

- FY2023: low $33.42 per share, central $36.10 per share, high $39.66 per share

- FY2024: low $15.15 per share, central $15.87 per share, high $16.83 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1419612/000117891326000632/zk2634374.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.