SOLAREDGE TECHNOLOGIES Reports Record Earnings for Q2 FY2023
August 26, 2023
🌥️Earnings Overview
For the second quarter of FY2023 (ending June 30, 2023), SOLAREDGE TECHNOLOGIES ($NASDAQ:SEDG) reported total revenue of USD 991.3 million, representing a 36.2% increase compared to the same period in the previous year. Net income was an impressive USD 119.5 million – up from the reported USD 15.1 million in the year-ago quarter.
Market Price
On Tuesday, SOLAREDGE TECHNOLOGIES reported record earnings for Q2 FY2023. Their stock opened at $237.8 and closed at $239.5, down by 0.8% from its previous closing price of 241.5. SOLAREDGE TECHNOLOGIES attributed its success to strong growth in all of its markets. SOLAREDGE TECHNOLOGIES CEO and chairman Ziv Aviram stated that “our financial results demonstrate the strength of our market-leading technology, our geographic diversification and our innovative energy storage solutions”.
He further added that “we remain focused on delivering long-term value to our shareholders and customers”. The company’s strong performance has led many analysts to upgrade their ratings on the stock and many investors are now considering investing in SOLAREDGE TECHNOLOGIES. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Solaredge Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 3.66k | 303.46 | 8.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Solaredge Technologies. More…
| Operations | Investing | Financing |
| 36.07 | -235.56 | -3.94 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Solaredge Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.7k | 2.18k | 44.73 |
Key Ratios Snapshot
Some of the financial key ratios for Solaredge Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 32.0% | 19.9% | 10.6% |
| FCF Margin | ROE | ROA |
| -3.7% | 10.0% | 5.2% |
Analysis
At GoodWhale, we conducted an analysis of SOLAREDGE TECHNOLOGIES’ wellbeing using the Star Chart tool. This tool identified SOLAREDGE TECHNOLOGIES as having strong assets, growth, and profitability, but weak dividends. Based on these results, we classified SOLAREDGE TECHNOLOGIES as a ‘gorilla’, a type of company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. Given SOLAREDGE TECHNOLOGIES’ strength and performance, we believe that value investors looking for a safe investment may be interested in this company. We also give SOLAREDGE TECHNOLOGIES a high health score of 9/10 considering its cashflows and debt; indicating that it has the capability to pay off debt and fund future operations. More…
Peers
In the solar energy industry, there is intense competition between SolarEdge Technologies Inc and its main competitors United Renewable Energy Co Ltd, Folkup Development Inc, and Tainergy Tech Co Ltd. All four companies are striving to be the leading provider of solar energy solutions and each has its own unique strengths and weaknesses. SolarEdge Technologies Inc has a strong focus on innovation and has developed several industry-leading products, while United Renewable Energy Co Ltd has a large customer base and a strong financial position. Folkup Development Inc has a strong research and development team, while Tainergy Tech Co Ltd has a large manufacturing capacity.
– United Renewable Energy Co Ltd ($TWSE:3576)
As of 2022, United Renewable Energy Co Ltd has a market cap of 34.73B and a Return on Equity of 2.02%. The company is engaged in the business of developing, manufacturing and marketing of solar photovoltaic products. It also provides engineering, procurement and construction services for solar power projects.
– Folkup Development Inc ($OTCPK:FLDI)
Folkup Development Inc is a publicly traded company with a market capitalization of $49 million as of 2022. The company has a return on equity of 40.0%, indicating that it is a profitable company that is generate shareholder value. Folkup Development Inc is engaged in the business of real estate development and management. The company has a portfolio of properties in the United States and Canada.
– Tainergy Tech Co Ltd ($TWSE:4934)
Tainergy Tech Co Ltd is a Taiwanese company that manufactures lithium batteries and energy storage systems. The company has a market cap of 5.65 billion as of 2022 and a return on equity of -26.54%. Tainergy Tech Co Ltd manufactures lithium batteries and energy storage systems for a variety of applications, including electric vehicles, power tools, and consumer electronics. The company has a strong presence in the Asia-Pacific region and is expanding its operations globally.
Summary
SolarEdge Technologies has reported impressive results for the second quarter of FY2023, with total revenue increasing 36.2% year-on-year. Net income saw an even greater jump, coming in at USD 119.5 million compared with USD 15.1 million the year before. This demonstrates strong financial performance and indicates a positive outlook for investors. With solid fundamentals and a clear growth trajectory, SolarEdge Technologies represents an attractive investment opportunity for those looking to benefit from the renewable energy sector.
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