Company Overview
Solar Edge is the world’s leading provider of solar optimizer and inverter systems. Headquartered in Israel the company was found in 2006 they first began selling product in 2010. The company provides a variety of products including; solar optimizers, DC inverters, monitoring equipment, tools and accessories for power harvesting, conversion and efficiency. These products are primarily implemented in commercial and residential PV installations. SolarEdge, as of 2018, has begun shifting its sights on new acquisitions to diversify it’s business and solidify their dominance in their market. In 2018 the company acquired Kokam, and S.M.R.E. SPA, a lithium ion battery maker and an EV vehicle solution provider respectively, in all cash & stock deals.
Q1 Earnings
Solaredge had a big quarter. Reporting record revenues of $271.9 million, 30% yoy, and GAAP net diluted EPS of $0.39 down about 47%. Despite this mixed bag Solaredge beat analyst estimates maintaining its strong track record (the company has beat analysts estimates ⅞ quarters).
The decrease in earnings comes primarily as a result of integration costs. In 2018 SolarEdge acquired several companies in all cash and stock deals. It is now in the process of integrating and combing it’s operations along with shifting the operations of certain companies.
Our thoughts
225Research is bullish overall on SolarEdge. We feel it provides an excellent opportunity to invest in the solar industry and presents itself as a very strong and well managed business. We’ve outlined our three reasons for believing in SolarEdge.
SolarEdge is well exposed to the residential adopt of solar technologies. By providing a better product and the goal of become a “smart-energy provider” SolarEdge is a significant investment opportunity for those bullish on renewable energy.
Strong, defensible product line
SolarEdge is the industry leader in innovation, consistently pushing their products to solve new problems. As such SolarEdge’s “DC Optimized Inverter system” remains superior to competitor’s traditional solutions: micro-inverters, and string inverters. SolarEdge’s system allows for an up to 25% increase panel efficiency compared to competing systems. The system also provides significant value adds which competition systems are incapable of implementing.
Positive partnerships and acquisitions
SolarEdge is quick to adopt new technologies into it’s product offerings. Recent partnerships and M&A activity are serving to better strengthen their offerings to consumers and further integrate their product offering.
Return to profitability through re-organization
Tariffs volatility contributed significantly in affected SolarEdge’s gross margin. However, thanks to pre-existing efforts management is effectively implementing a strategy to mitigate the effects. Once complete SolarEdge will return to it’s target gross margin of 37%
We are currently in the process of developing a report which is expected to be released in a few days time.Company Overview
Solar Edge is the world’s leading provider of solar optimizer and inverter systems. Headquartered in Israel the company was found in 2006 they first began selling product in 2010. The company provides a variety of products including; solar optimizers, DC inverters, monitoring equipment, tools and accessories for power harvesting, conversion and efficiency. These products are primarily implemented in commercial and residential PV installations. SolarEdge, as of 2018, has begun shifting its sights on new acquisitions to diversify it’s business and solidify their dominance in their market. In 2018 the company acquired Kokam, and S.M.R.E. SPA, a lithium ion battery maker and an EV vehicle solution provider respectively, in all cash & stock deals.
Q1 Earnings
Solaredge had a big quarter. Reporting record revenues of $271.9 million, 30% yoy, and GAAP net diluted EPS of $0.39 down about 47%. Despite this mixed bag Solaredge beat analyst estimates maintaining its strong track record (the company has beat analysts estimates ⅞ quarters).
The decrease in earnings comes primarily as a result of integration costs. In 2018 SolarEdge acquired several companies in all cash and stock deals. It is now in the process of integrating and combing it’s operations along with shifting the operations of certain companies.
Our thoughts
225Research is bullish overall on SolarEdge. We feel it provides an excellent opportunity to invest in the solar industry and presents itself as a very strong and well managed business. We’ve outlined our three reasons for believing in SolarEdge.
SolarEdge is well exposed to the residential adopt of solar technologies. By providing a better product and the goal of become a “smart-energy provider” SolarEdge is a significant investment opportunity for those bullish on renewable energy.
Strong, defensible product line
SolarEdge is the industry leader in innovation, consistently pushing their products to solve new problems. As such SolarEdge’s “DC Optimized Inverter system” remains superior to competitor’s traditional solutions: micro-inverters, and string inverters. SolarEdge’s system allows for an up to 25% increase panel efficiency compared to competing systems. The system also provides significant value adds which competition systems are incapable of implementing.
Positive partnerships and acquisitions
SolarEdge is quick to adopt new technologies into it’s product offerings. Recent partnerships and M&A activity are serving to better strengthen their offerings to consumers and further integrate their product offering.
Return to profitability through re-organization
Tariffs volatility contributed significantly in affected SolarEdge’s gross margin. However, thanks to pre-existing efforts management is effectively implementing a strategy to mitigate the effects. Once complete SolarEdge will return to it’s target gross margin of 37%
We are currently in the process of developing a report on SolarEdge which is expected to be released in a few days time.
You can find our most recent report on Aritzia Inc. Here
