SEDG

Solaredge Technologies Inc

TMT, Energy, Utilities


Presented:11/18/2019
Price:$76.79
Cap:$3.73B
Current Price:$18.19
Cap:$1.04B

Presented

Date11/18/2019
Price$76.79
Market Cap$3.73B
Ent Value$2.90B
P/E Ratio35.95x
Book Value$15.07
Div Yield0%
Shares O/S48.61M
Ave Daily Vol1,378,536
Short Int8.71%

Current

Price$18.19
Market Cap$1.04B
SolarEdge Technologies, Inc. engages in the operation of inverter solution for the harvesting and managing of photovoltaic solar power. The company's products include power optimizer, inverter and monitoring portal. It offers residential solutions, commercial solutions, and grid services. The company was founded by Guy Sella, Lior Handelsman, Yoav Galin, Meir Adest and Amir Fishelov in 2006 and is headquartered in Hod HaSharon, Israel.

Publicly traded companies mentioned herein: Enphase Energy Inc (ENPH), SolarEdge Technologies Inc (SEDG)

Highlights

The presenter is short shares of SolarEdge Technologies Inc (SEDG), which manufactures solar inverters that invert the DC energy from the solar panels to AC power that can be fed into the home. The stock is currently trading at ~$77 per share (16x consensus 2020 EPS) but he sees significant downside to ~$41 per share based on his assumptions that the company misses on its 2020 numbers and the multiple compresses to its historical range of 10x – 13x. In his model, SEDG’s earnings misses will occur on the back of growth normalizing to a pace in-line with market growth, market share loss, and inventory build due to tax regulations. 

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Idea Discussion

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