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SolarEdge Technologies (LTS:0L7S) Piotroski F-Score : 2 (As of Dec. 15, 2024)


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What is SolarEdge Technologies Piotroski F-Score?

Warning Sign:

Piotroski F-Score of 2 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

SolarEdge Technologies has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for SolarEdge Technologies's Piotroski F-Score or its related term are showing as below:

LTS:0L7S' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 2

During the past 12 years, the highest Piotroski F-Score of SolarEdge Technologies was 7. The lowest was 2. And the median was 5.


SolarEdge Technologies Piotroski F-Score Historical Data

The historical data trend for SolarEdge Technologies's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

SolarEdge Technologies Piotroski F-Score Chart

SolarEdge Technologies Annual Data
Trend Jun14 Jun15 Jun16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 4.00 5.00 5.00 4.00

SolarEdge Technologies Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 4.00 3.00 4.00 2.00

Competitive Comparison of SolarEdge Technologies's Piotroski F-Score

For the Solar subindustry, SolarEdge Technologies's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, SolarEdge Technologies's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where SolarEdge Technologies's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was -162.383 + -157.311 + -130.818 + -1205.321 = $-1,656 Mil.
Cash Flow from Operations was -139.91 + -217.019 + -44.772 + -63.865 = $-466 Mil.
Revenue was 316.044 + 204.399 + 265.405 + 260.903 = $1,047 Mil.
Gross Profit was -56.425 + -26.187 + -10.969 + -702.326 = $-796 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(4651.154 + 4587.731 + 4166.822 + 3948.214 + 2816.394) / 5 = $4034.063 Mil.
Total Assets at the begining of this year (Sep23) was $4,651 Mil.
Long-Term Debt & Capital Lease Obligation was $400 Mil.
Total Current Assets was $2,118 Mil.
Total Current Liabilities was $904 Mil.
Net Income was 20.829 + 138.378 + 119.51 + -61.176 = $218 Mil.

Revenue was 890.702 + 943.889 + 991.29 + 725.305 = $3,551 Mil.
Gross Profit was 261.047 + 300.126 + 317.305 + 142.817 = $1,021 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(3903.546 + 4265.949 + 4496.426 + 4696.565 + 4651.154) / 5 = $4402.728 Mil.
Total Assets at the begining of last year (Sep22) was $3,904 Mil.
Long-Term Debt & Capital Lease Obligation was $714 Mil.
Total Current Assets was $3,363 Mil.
Total Current Liabilities was $877 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

SolarEdge Technologies's current Net Income (TTM) was -1,656. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

SolarEdge Technologies's current Cash Flow from Operations (TTM) was -466. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=-1655.833/4651.154
=-0.35600477

ROA (Last Year)=Net Income/Total Assets (Sep22)
=217.541/3903.546
=0.05572907

SolarEdge Technologies's return on assets of this year was -0.35600477. SolarEdge Technologies's return on assets of last year was 0.05572907. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

SolarEdge Technologies's current Net Income (TTM) was -1,656. SolarEdge Technologies's current Cash Flow from Operations (TTM) was -466. ==> -466 > -1,656 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=400.104/4034.063
=0.0991814

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=713.55/4402.728
=0.16206997

SolarEdge Technologies's gearing of this year was 0.0991814. SolarEdge Technologies's gearing of last year was 0.16206997. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=2118.115/903.812
=2.34353494

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=3363.467/876.651
=3.83672294

SolarEdge Technologies's current ratio of this year was 2.34353494. SolarEdge Technologies's current ratio of last year was 3.83672294. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

SolarEdge Technologies's number of shares in issue this year was 57.03. SolarEdge Technologies's number of shares in issue last year was 56.672. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=-795.907/1046.751
=-0.76035944

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1021.295/3551.186
=0.28759265

SolarEdge Technologies's gross margin of this year was -0.76035944. SolarEdge Technologies's gross margin of last year was 0.28759265. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=1046.751/4651.154
=0.22505189

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=3551.186/3903.546
=0.90973336

SolarEdge Technologies's asset turnover of this year was 0.22505189. SolarEdge Technologies's asset turnover of last year was 0.90973336. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+0+0+1+1+0+0+0+0
=2

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

SolarEdge Technologies has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

SolarEdge Technologies  (LTS:0L7S) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


SolarEdge Technologies Piotroski F-Score Related Terms

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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.

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