In October and November, the shares of inverter manufacturer SolarEdge Technologies Inc. (SEDG) fell. That raises concerns around company’s ability to rebound to a long-term growth.
An 18 percent year-on-year decrease in SolarEdge revenue was seen in a third-quarter study published in early November. Moreover, for the fourth quarter, the company presented a poor outlook. Some investors sold shares in this respect, recording a profit.
The company however is not small, although the COVID-19 crisis resulted in a number of projects being suspended due to forced self-isolation. At the same time, the average annual sales growth rate of SolarEdge has been about 45 percent since going public in 2015. At the same time, the end of the COVID-19 crisis is expected to lead to resumption in 2021 with the previous pace of solar power plant development and other green projects.
New inverters and other equipment for working with solar panels have already been prepared by SolarEdge at this stage. The company also expects to begin collecting revenue in the second quarter of next year from the selling of batteries for solar systems. The competitive position of SolarEdge is thus improved, and the company will return to the previous rate of improvement in financial results easily.
SEDG remains promising in its second significant direction which is the construction and production of power plants for electric two-wheeled vehicles and electric vehicles.
Even taking into account the shares fell by -24.56 percent over the past month, the stock of the SolarEdge Technologies Inc. (SEDG) has increased by approximately 133% since the beginning of the year. Also over the past week it has added 3.40 percent which grew to 69.89 percent in the past six months. Over the past 52-weeks the company’s stock rose 203.66 percent which bring its market capitalization to $12.24 billion.