MeritValue

SOLAREDGE TECHNOLOGIES, INC.

SEDGdata completeness 88%13 fiscal years on file
The thesis, from the filings

SOLAREDGE TECHNOLOGIES, INC. earns about -80% on invested capital, but has diluted owners by 5% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $6.03 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.96B1$3.11B2$2.98B3$901.5M3$1.18B3
Net income$169.2M4$441.7M5$34.3M6−$1.81B6−$405.4M6
Operating cash flow$214.1M7$31.3M8−$180.1M9−$313.3M9$104.3M9
Capital expenditure$149.3M10$169.3M11$170.5M12$108.2M12$23.5M12
Free cash flow (derived)$64.9M7−$138.1M8−$350.6M9−$421.5M9$80.8M9
Total debt—————
Cash & equivalents$530.1M13$783.1M14$338.5M15$274.6M15$455.1M15
Diluted shares56.0M58.1M57.2M57.1M59.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$72.51
your share of equity
Profit it earned you last year
−$68.77
Free cash flow it threw off
$13.7
Debt you’d be carrying
—

10 shares is a claim on $72.51 of net worth that earned you −$68.77 and generated $13.7 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-80% avg · 5y
FY21 22%FY22 7%FY23 2%FY24 -351%FY25 —

It earned an average -80% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+5% shares · 5y

Share count is up 5% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$6.03
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$34.3M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001178913-24-000717 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001178913-25-000605 (Revenues)
  3. 10-K/A · period ending 2023-12-31 · accession 0001178913-26-001595 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001178913-24-000717 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001178913-25-000605 (NetIncomeLoss)
  6. 10-K/A · period ending 2023-12-31 · accession 0001178913-26-001595 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001178913-24-000717 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001178913-25-000605 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K/A · period ending 2023-12-31 · accession 0001178913-26-001595 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001178913-24-000717 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001178913-25-000605 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K/A · period ending 2023-12-31 · accession 0001178913-26-001595 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001178913-23-000707 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001178913-25-000605 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K/A · period ending 2023-12-31 · accession 0001178913-26-001595 (CashAndCashEquivalentsAtCarryingValue)