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Solaredge Technologies, Inc.. (SEDG) Fundamental Analysis & AI Grade 2026

SEDG Nasdaq Semiconductors & Related Devices DE CIK: 0001419612
Updated This Month • Analysis: May 8, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
75% Confidence
N/A
C
75% Conf
Pending
Analysis scheduled

📊 SEDG Key Takeaways

Revenue: $310.5M
Net Margin: -18.5%
Free Cash Flow: $20.7M
Current Ratio: 2.02x
Debt/Equity: 0.81x
EPS: $-0.95
AI Grade: C with 75% confidence
Solaredge Technologies, Inc.. (SEDG) receives a C fundamental grade with 75% confidence from our AI analysis based on SEC 10-K filings. With revenue of $310.5M, net profit margin of -18.5%, and return on equity (ROE) of -14.0%, Solaredge Technologies, Inc.. demonstrates mixed fundamentals in the Technology sector. Below is our complete SEDG stock analysis for 2026.

Is Solaredge Technologies, Inc.. (SEDG) a Good Investment?

Claude

SolarEdge is currently unprofitable with significant operating losses (-$55.0M) and negative net income (-$57.4M), despite generating $310.5M in revenue and maintaining positive free cash flow. While the strong balance sheet ($512.4M cash, net cash position) and positive operating cash flow ($24.4M) suggest underlying business viability, the company must demonstrate a credible path to profitability. Operating expenses consume all gross profit margin, making current fundamentals unfavorable for investment.

Solaredge Technologies, Inc.. Key Strengths (SEDG)

Claude
  • + Positive operating cash flow ($24.4M) and free cash flow ($20.7M) despite net losses, indicating the core business generates cash and non-cash charges may be temporary
  • + Strong gross margin (22%) on $310.5M revenue demonstrates product demand and pricing power at the manufacturing level
  • + Solid balance sheet with $512.4M cash, net cash position of ~$181M after debt, and healthy liquidity ratios (2.02x current, 1.36x quick)

SEDG Stock Risks: Solaredge Technologies, Inc.. Investment Risks

Claude
  • ! Operating losses (-$55.0M) and negative operating margin (-17.7%) indicate operating expenses far exceed gross profit—fundamental profitability issue
  • ! Negative returns on equity (-14.0%) and assets (-2.5%) demonstrate inefficient capital deployment and shareholder value destruction
  • ! Negative interest coverage (-47.6x) and cumulative losses eroding equity cushion; cash burn rate unsustainable long-term without operational turnaround

Key Metrics to Watch

Claude
  • * Operating margin trend and path to breakeven—monitor if operating expenses are controlled
  • * Operating cash flow sustainability—verify if positive OCF is repeatable or driven by timing
  • * Gross margin stability—track if 22% margin can be maintained and expanded to reach profitability

Solaredge Technologies, Inc.. (SEDG) Financial Metrics & Key Ratios

Revenue
$310.5M
Net Income
$-57.4M
EPS (Diluted)
$-0.95
Free Cash Flow
$20.7M
Total Assets
$2.3B
Cash Position
$512.4M

💡 AI Analyst Insight

Strong liquidity with a 2.02x current ratio provides a solid financial cushion.

SEDG Profit Margin, ROE & Profitability Analysis

Gross Margin 22.0%
Operating Margin -17.7%
Net Margin -18.5%
ROE -14.0%
ROA -2.5%
FCF Margin 6.7%

SEDG vs Technology Sector: How Solaredge Technologies, Inc.. Compares

How Solaredge Technologies, Inc.. compares to Technology sector averages

Net Margin
SEDG -18.5%
vs
Sector Avg 18.0%
SEDG Sector
ROE
SEDG -14.0%
vs
Sector Avg 22.0%
SEDG Sector
Current Ratio
SEDG 2.0x
vs
Sector Avg 2.5x
SEDG Sector
Debt/Equity
SEDG 0.8x
vs
Sector Avg 0.5x
SEDG Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Solaredge Technologies, Inc.. Stock Overvalued? SEDG Valuation Analysis 2026

Based on fundamental analysis, Solaredge Technologies, Inc.. shows some fundamental concerns relative to the Technology sector in 2026.

Return on Equity
-14.0%
Sector avg: 22%
Net Profit Margin
-18.5%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.81x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Solaredge Technologies, Inc.. Balance Sheet: SEDG Debt, Cash & Liquidity

Current Ratio
2.02x
Quick Ratio
1.36x
Debt/Equity
0.81x
Debt/Assets
0.0%
Interest Coverage
-47.62x
Long-term Debt
$331.6M

SEDG Revenue & Earnings Growth: 5-Year Financial Trend

SEDG 5-year financial data: Year 2021: Revenue $2.0B, Net Income $146.5M, EPS $2.90. Year 2022: Revenue $3.1B, Net Income $140.3M, EPS $2.66. Year 2023: Revenue $3.1B, Net Income $169.2M, EPS $3.06. Year 2024: Revenue $3.1B, Net Income $441.7M, EPS $1.65. Year 2025: Revenue $3.0B, Net Income $34.3M, EPS $0.60.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Solaredge Technologies, Inc..'s revenue has grown significantly by 52% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.60 reflects profitable operations.

SEDG Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
6.7%
Free cash flow / Revenue

SEDG Quarterly Earnings & Performance

Quarterly financial performance data for Solaredge Technologies, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $219.5M -$57.4M $-0.95
Q3 2025 $235.4M -$50.1M $-0.84
Q2 2025 $265.4M -$98.5M $-2.13
Q1 2025 $204.4M -$98.5M $-1.70
Q3 2024 $260.9M -$61.2M $-1.08
Q2 2024 $265.4M $119.5M $2.03
Q1 2024 $204.4M $138.4M $2.35
Q3 2023 $725.3M $15.1M $0.43

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Solaredge Technologies, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$24.4M
Cash generated from operations
Capital Expenditures
$3.7M
Investment in assets
Dividends
None
No dividend program

SEDG SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Solaredge Technologies, Inc.. (CIK: 0001419612)

📋 Recent SEC Filings

Date Form Document Action
May 11, 2026 4 xslF345X06/ownership.xml View →
May 11, 2026 8-K zk2635247.htm View →
May 7, 2026 10-Q zk2635169.htm View →
May 6, 2026 8-K zk2635207.htm View →
Apr 23, 2026 DEF 14A zk2635099.htm View →

Frequently Asked Questions about SEDG

What is the AI rating for SEDG?

Solaredge Technologies, Inc.. (SEDG) has an AI grade of C with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SEDG's key strengths?

Claude: Positive operating cash flow ($24.4M) and free cash flow ($20.7M) despite net losses, indicating the core business generates cash and non-cash charges may be temporary. Strong gross margin (22%) on $310.5M revenue demonstrates product demand and pricing power at the manufacturing level.

What are the risks of investing in SEDG?

Claude: Operating losses (-$55.0M) and negative operating margin (-17.7%) indicate operating expenses far exceed gross profit—fundamental profitability issue. Negative returns on equity (-14.0%) and assets (-2.5%) demonstrate inefficient capital deployment and shareholder value destruction.

What is SEDG's revenue and growth?

Solaredge Technologies, Inc.. reported revenue of $310.5M.

Does SEDG pay dividends?

Solaredge Technologies, Inc.. does not currently pay dividends.

Where can I find SEDG SEC filings?

Official SEC filings for Solaredge Technologies, Inc.. (CIK: 0001419612) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SEDG's EPS?

Solaredge Technologies, Inc.. has a diluted EPS of $-0.95.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is SEDG's fundamental grade?

Based on our AI fundamental analysis in June 2026, Solaredge Technologies, Inc.. has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SEDG stock overvalued or undervalued?

Valuation metrics for SEDG: ROE of -14.0% (sector avg: 22%), net margin of -18.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

What is SEDG's AI grade for 2026?

Our dual AI analysis gives Solaredge Technologies, Inc.. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SEDG's free cash flow?

Solaredge Technologies, Inc..'s operating cash flow is $24.4M, with capital expenditures of $3.7M. FCF margin is 6.7%.

How does SEDG compare to other Technology stocks?

Vs Technology sector averages: Net margin -18.5% (avg: 18%), ROE -14.0% (avg: 22%), current ratio 2.02 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 8, 2026 | Data as of: 2026-03-31 | Powered by Claude AI