SolarEdge Technologies Inc. (NASDAQ:SEDG)

The financial data reveals several significant trends spanning from mid-2015 to the end of 2022.

Revenues

There is a consistent and strong upward trajectory in revenues over the period analyzed. Revenues grew from approximately 325 million US dollars in mid-2015 to over 3.1 billion US dollars by the end of 2022. This represents nearly a tenfold increase, reflecting robust sales growth that accelerates particularly after 2017.

Operating Income

Operating income also increased overall, rising from about 28 million US dollars in mid-2015 to a peak of over 207 million by the end of 2021. However, it experienced some fluctuations, notably a decline in 2020 compared to 2019, followed by a recovery in 2021 and another decrease in 2022. Despite these fluctuations, operating income maintained positive growth over the long term.

Operating Profit Margin

The operating profit margin exhibits a declining trend over the years. Starting at 8.69% in mid-2015, the margin improved substantially to reach a peak of around 15% by the end of 2017. Following this peak, the margin steadily decreased each year to 5.34% in 2022, indicating that while revenues and operating income grew, profitability relative to revenue diminished over time. This decline suggests increasing costs, pricing pressures, or a shift in business mix impacting efficiency.

In summary, the company demonstrated strong revenue growth and increasing operating income overall but experienced a notable decline in operating profit margin in the latter years. This combination indicates expanding scale of operations alongside challenges in maintaining operating efficiency or cost control.