Is SolarEdge a Value Investment in Clean Energy?
SolarEdge is potentially a value investment because it makes money and markets products critical for the commercialization of solar electricity and electric vehicles. For example, SolarEdge makes optimizers which solar cells need to operate.
SolarEdge’s inverter technology could be even more valuable than modules. Without inverters, the electricity produced by solar panels is useless.
Therefore, every solar electric system will need an inverter. SolarEdge has developed inverters that could convert up to 100-kilowatt hours of electricity. Critically, SolarEdge’s phase three inverters are small, easy, to carry, and easy to install.
SolarEdge has developed large capacity inverters for use at solar power plants. Moreover, SolarEdge has smaller inverters for homes and businesses.
SolarEdge reported $227.12 million in revenues, a gross profit of $81.95 million, $40.67 million in operating income, and $34.57 million in net income for 2nd Quarter 2018. That sets SolarEdge apart from most clean energy companies, which lose money.
In addition, SolarEdge’s revenues grew at a rate of 66.88% during 2nd Quarter 2018. Interestingly, SolarEdge has some cash flow. It recorded an operating cash flow of $43.89 million and a free cash flow of $33.83 million on 30 June 2018.
SolarEdge even has some money in the bank. It reported $216.59 million in cash and equivalents and $134.82 million in short-term investments on June 30, 2018. Therefore, SolarEdge had $351.41 million in cash.
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