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SolarEdge Technologies (MEX:SEDG) Gross Margin % : -269.19% (As of Sep. 2024)


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What is SolarEdge Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SolarEdge Technologies's Gross Profit for the three months ended in Sep. 2024 was MXN-13,829 Mil. SolarEdge Technologies's Revenue for the three months ended in Sep. 2024 was MXN5,137 Mil. Therefore, SolarEdge Technologies's Gross Margin % for the quarter that ended in Sep. 2024 was -269.19%.

Warning Sign:

SolarEdge Technologies Inc gross margin has been in long-term decline. The average rate of decline per year is -6.8%.


The historical rank and industry rank for SolarEdge Technologies's Gross Margin % or its related term are showing as below:

MEX:SEDG' s Gross Margin % Range Over the Past 10 Years
Min: -76.04   Med: 31.32   Max: 35.38
Current: -76.04


During the past 12 years, the highest Gross Margin % of SolarEdge Technologies was 35.38%. The lowest was -76.04%. And the median was 31.32%.

MEX:SEDG's Gross Margin % is ranked worse than
99.19% of 985 companies
in the Semiconductors industry
Industry Median: 28.33 vs MEX:SEDG: -76.04

SolarEdge Technologies had a gross margin of -269.19% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for SolarEdge Technologies was -6.80% per year.


SolarEdge Technologies Gross Margin % Historical Data

The historical data trend for SolarEdge Technologies's Gross Margin % 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 Gross Margin % Chart

SolarEdge Technologies Annual Data
Trend Jun14 Jun15 Jun16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.62 31.62 32.04 27.16 23.65

SolarEdge Technologies Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % 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 19.69 -17.85 -12.81 -4.13 -269.19

Competitive Comparison of SolarEdge Technologies's Gross Margin %

For the Solar subindustry, SolarEdge Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, SolarEdge Technologies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where SolarEdge Technologies's Gross Margin % falls into.



SolarEdge Technologies Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

SolarEdge Technologies's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=11946.9 / 50524.324
=(Revenue - Cost of Goods Sold) / Revenue
=(50524.324 - 38577.458) / 50524.324
=23.65 %

SolarEdge Technologies's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=-13829 / 5137.258
=(Revenue - Cost of Goods Sold) / Revenue
=(5137.258 - 18966.268) / 5137.258
=-269.19 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


SolarEdge Technologies  (MEX:SEDG) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

SolarEdge Technologies had a gross margin of -269.19% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


SolarEdge Technologies Gross Margin % Related Terms

Thank you for viewing the detailed overview of SolarEdge Technologies's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


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.