SPWR

SunPower Corporation

17.36
USD
-0.74%
17.36
USD
-0.74%
12.78 34.61
52 weeks
52 weeks

Mkt Cap 3.00B

Shares Out 172.86M

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SolarEdge Technologies Jumps 6x Since 2018 On Rising Sales And Investor Expectations

SolarEdge Technologies Inc. (NASDAQ: SEDG) stock price rose over 6x from $35 in 2018 end to around $239 currently, primarily due to favorable changes in its sales and P/S multiple. During this period, the company witnessed a stellar 136% rise in revenues, and combined with a 179% rise in its P/S multiple, the company’s stock price has rallied despite a rise in the outstanding share count. Further, over the same period, the S&P 500 returned around 65%, meaning that SEDG stock has managed to strongly beat the index since 2018-end. In our interactive dashboard, Why SolarEdge Technologies Stock Moved: SEDG Stock Has Gained 582% Since 2018, we break down the factors behind this move. (A) SEDG’s Total Revenue has grown 136% from $900 million in FY 2018 to $2.2 billion on an LTM basis SEDG’s total revenue has risen consistently from $900 million in FY ’18 to $2 billion in FY ’21, and currently stands higher at $2.2 billion on an LTM basis. SolarEdge is a provider of power optimizer, solar inverter, and monitoring systems for photovoltaic arrays. SEDG’s largest segment is the solar segment, bringing in $1.79 billion as of FY ’21, making up around 91% of the company’s total sales. For additional details about SEDG’s revenues and comparison to peers, see SolarEdge Technologies (SEDG) Revenue Comparison (B) Revenue per share (RPS) increased 100% from $20.73 in 2018 to $41.43 currently SEDG’s revenue rose from $900 million in 2018 to $2.2 billion currently, while the outstanding share count rose from 45.2 million in 2018 to around 53.4 million currently. Due to this, RPS has jumped 2x from $20.73 in FY ’18 to $41.43 currently. (C) Price-To-Sales (P/S) multiple for SEDG rose strongly from 2.1x in 2018 to 12.1x by 2020 end, but has pulled back to 5.8x currently, still over 2x higher than its 2018 level SEDG’s P/S multiple rose strongly to around 12.1x by late 2020, on the back of rising investor expectations surrounding increased solar energy adoption, leading to a rise in the company’s sales. However, due to the current geopolitical tensions and increased economic uncertainty weighing on the broader markets, the P/S multiple has pulled back, currently standing at around 5.8x. For additional details about the company stock returns and comparison to peers, see SolarEdge Technologies (SEDG) Stock Return Comparison. What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016. [1] Month-to-date and year-to-date as of 5/18/2022 [2] Cumulative total returns since the end of 2016 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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