What is SolarEdge Technologies Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, SolarEdge Technologies's Probability of Financial Distress (%) is 0.18%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of SolarEdge Technologies's Probability of Financial Distress (%)
For the Solar subindustry, SolarEdge Technologies's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SolarEdge Technologies's Probability of Financial Distress (%) Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, SolarEdge Technologies's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where SolarEdge Technologies's Probability of Financial Distress (%) falls into.
SolarEdge Technologies Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -6.31 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.18% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
SolarEdge Technologies (SolarEdge Technologies) Business Description
Traded in Other Exchanges
Address
1 HaMada Street, Post Box 12001, Herziliya Pituach, ISR, 4673335
SolarEdge Technologies designs, develops, and sells direct current optimized inverter systems for solar photovoltaic installations. The company system consists of power optimizers, inverters, and cloud-based monitoring platform and addresses a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations. The company sells its products directly to solar installers, engineering, procurement, and construction firms and indirectly to solar installers through distributors and electrical equipment wholesalers. Additionally, the company has nonsolar products targeting energy storage and e-mobility.
Executives
| Marcel Gani |
director |
142 ALMENDRAL AVE, ATHERTON CA 94027 |
| More Avery |
director |
5930 ROYAL LANE SUITE E-120, DALLAS TX 75230 |
| Ronen Faier |
officer: Chief Financial Officer |
MARVA 11, HERZLIA L3 46417 |
| Dana Rebecca Gross |
director |
C/O PLAYTIKA LTD., HACHOSHLIM ST 8, HERZLIYA PITUARCH L3 4672408 |
| Meir Adest |
officer: VP, Core Technologies |
1 HAMADA STREET, HERZILIYA PITUACH L3 4673335 |
| Uri Bechor |
officer: Chief Operating Officer |
1 HAMADA STREET, HERZILIYA PITUACH L3 4673335 |
| Zvi Lando |
officer: Vice President, Global Sales |
1 HAMADA STREET, HERZILIYA PITUACH L3 4673335 |
| Rachel Prishkolnik |
officer: VP, GC and Corporate Secretary |
1 HAMADA STREET, HERZILIYA PITUACH L3 4673335 |
| Dirk Hoke |
director |
251 RHODE ISLAND STREET, SUITE 204, SAN FRANCISCO CA 94103 |
| Doron Inbar |
director |
C/O CARMEL VENTURES, 12 ABBA EBAN AVENUE, HERZELIYA L3 46725 |
| Yoav Galin |
officer: VP, Research and Development |
1 HAMADA STREET, HERZILIYA PITUACH L3 4673335 |
| Tal Payne |
director |
1 HAMADA STREET, HERZILIYA PITUACH L3 4673335 |
| Betsy S Atkins |
director |
|
| Jonathan Cheifetz |
director |
9 EIN YAKOV ST., TEL AVIV L3 65155 |
| Lior Handelsman |
officer: VP, Marktng and Prod Strategy |
1 HAMADA STREET, HERZILIYA PITUACH L3 4673335 |
SolarEdge Technologies (SolarEdge Technologies) Headlines
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