Why I think it's a good investment
Is solar the future? Where is sustainable energy going?
“The future is green energy, sustainability, renewable energy ” - Arnold Schwarzenegger
I don't always quote Arnie, but when I do, it's because I believe in the words spoken.
SolarEdge Technologies, Inc. is a provider of power optimizer,solar inverter and monitoring systems for photovoltaic arrays. These products aim to increase energy output through module-level Maximum Power Point Tracking. Established in 2006, the company has offices in the United States, Germany, Italy, Japan, and Israel (Thanks Wikipedia)
A quick breakdown of $SEDG - I managed to get into Solaredge Technologies at $70 which was a great discount during the recent economic events. This coincided with the previous support/resistance formed in May 18 and Sep 19.
SEDG has an average analyst target of $123 and is currently rated at ‘Out Perform’ - It has had a steady increase in cash flow over the last 5 years along with rising turnover and equity.
It has a current gross margin of around 33% which is excellent.SGA shows a consistent growth along with a steady R&D which indicates to me they have a good business model and have little competition in this sector. They've previously partnered with Tesla on their PV storage and back up power solutions.
Net earnings are running at just over 10%. It’s at the lower end of the spectrum that I usually look for but still acceptable for a long term investment. Renewable energy companies are always worth looking at. As a society we are looking at ways to reduce carbon emissions and to generate cleaner forms of energy. Renewable energy is something that is here to stay and definitely worth investing in for the future.
If you have any conflicting opinions on $SEDG let me know as it’s always good to get another opinion!
This isn’t intended as financial advice and purely my own opinion of this company.