Net Profit Margin
since 2015
Calculation
SolarEdge Technologies Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 3.02% | = | 100 | × | 93,779) | ÷ | 3,110,279) |
| Dec 31, 2021 | 8.61% | = | 100 | × | 169,170) | ÷ | 1,963,865) |
| Dec 31, 2020 | 9.62% | = | 100 | × | 140,322) | ÷ | 1,459,271) |
| Dec 31, 2019 | 10.28% | = | 100 | × | 146,549) | ÷ | 1,425,660) |
| Dec 31, 2018 | 13.75% | = | 100 | × | 128,833) | ÷ | 937,237) |
| Dec 31, 2017 | 13.87% | = | 100 | × | 84,172) | ÷ | 607,045) |
| Jun 30, 2016 | 15.64% | = | 100 | × | 76,609) | ÷ | 489,843) |
| Jun 30, 2015 | 6.50% | = | 100 | × | 21,121) | ÷ | 325,078) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30).
1 US$ in thousands
The financial performance between 2015 and 2022 is characterized by a significant divergence between revenue expansion and profitability efficiency. While the company achieved consistent and substantial growth in top-line revenue, the net profit margin experienced an initial peak followed by a sustained long-term contraction.
- Revenue Growth Trajectory
- A strong upward trend in revenues is observed, increasing from US$325.1 million in 2015 to US$3.11 billion by 2022. The most accelerated growth occurred in the final year of the period, where revenues rose by approximately 58% from the previous year.
- Net Income Volatility
- Net income demonstrated a steady climb from US$21.1 million in 2015 to a peak of US$169.2 million in 2021. However, 2022 saw a sharp reversal, with net income decreasing to US$93.8 million, representing a nearly 45% decline despite the simultaneous increase in total revenues.
- Net Profit Margin Analysis
- The net profit margin reached its highest point in 2016 at 15.64%. Following this peak, a gradual downward trend was observed from 2017 through 2021, with margins sliding from 13.87% to 8.61%. This decline culminated in a severe contraction in 2022, where the margin fell to 3.02%, indicating a significant increase in the costs associated with generating revenue.
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Comparison to Competitors
SolarEdge Technologies Inc., net profit margin, long-term trends, comparison to competitors
| SolarEdge Technologies Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 3.02% | 5.59% | 22.88% | 25.31% | 34.62% | 12.71% | 36.06% | 26.73% | -9.44% | 28.24% | 36.23% | 29.27% | 43.68% |
| Dec 31, 2021 | 8.61% | 19.24% | 19.00% | 25.53% | 24.54% | 25.14% | 30.04% | 26.72% | -9.34% | 21.16% | 25.98% | 26.94% | 42.35% |
| Dec 31, 2020 | 9.62% | 25.50% | 21.79% | 21.04% | 12.39% | 26.84% | 20.96% | 22.42% | 58.70% | 12.54% | 25.61% | 22.09% | 38.69% |
| Dec 31, 2019 | 10.28% | 5.07% | 22.75% | 18.52% | 12.05% | 29.25% | 25.73% | 22.70% | -6.25% | 26.97% | 35.34% | 18.07% | 34.88% |
| Dec 31, 2018 | 13.75% | 5.20% | 24.12% | 19.20% | 58.80% | 29.72% | 19.87% | 21.49% | 21.62% | 46.51% | 31.37% | -21.40% | 35.35% |
| Dec 31, 2017 | 13.87% | 0.81% | 14.24% | 23.62% | 9.59% | 15.30% | 26.61% | 21.19% | 0.91% | 25.04% | 24.11% | 11.06% | 24.61% |
| Jun 30, 2016 | 15.64% | -11.63% | 25.18% | 15.90% | -13.13% | 17.37% | 23.60% | 15.53% | -29.77% | -2.23% | 12.26% | 24.22% | 26.89% |
| Jun 30, 2015 | 6.50% | -16.54% | 20.29% | 14.26% | 19.99% | 20.63% | 13.01% | 12.47% | 11.74% | 17.90% | 13.47% | 20.85% | 22.97% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
SolarEdge Technologies Inc., net profit margin, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| SolarEdge Technologies Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2022 | 3.02% | 25.04% |
| Dec 31, 2021 | 8.61% | 25.45% |
| Dec 31, 2020 | 9.62% | 23.53% |
| Dec 31, 2019 | 10.28% | 24.08% |
| Dec 31, 2018 | 13.75% | 27.58% |
| Dec 31, 2017 | 13.87% | 16.90% |
| Jun 30, 2016 | 15.64% | 13.44% |
| Jun 30, 2015 | 6.50% | 18.27% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30).
Comparison to Industry (Information Technology)
SolarEdge Technologies Inc., net profit margin, long-term trends, comparison to industry (information technology)
| SolarEdge Technologies Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 3.02% | 22.27% |
| Dec 31, 2021 | 8.61% | 23.48% |
| Dec 31, 2020 | 9.62% | 19.76% |
| Dec 31, 2019 | 10.28% | 19.73% |
| Dec 31, 2018 | 13.75% | 18.59% |
| Dec 31, 2017 | 13.87% | 17.77% |
| Jun 30, 2016 | 15.64% | 17.58% |
| Jun 30, 2015 | 6.50% | 18.32% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30).