Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
SolarEdge Technologies Inc., FCFE calculation
US$ in thousands
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).
- Net cash provided by operating activities
- The net cash generated from operating activities exhibited an overall fluctuating trend over the five-year period. Starting at $189,079 thousand in 2018, it increased to $259,000 thousand in 2019, indicating a significant improvement in the company's operational cash generation. However, in 2020 and 2021, there was a decline to $222,655 thousand and $214,129 thousand, respectively. By 2022, the figure sharply decreased to $31,284 thousand, marking the lowest point in the period analyzed, which may signal operational challenges or increased operational costs adversely impacting the cash inflows.
- Free cash flow to equity (FCFE)
- The free cash flow to equity exhibited more volatility and a less consistent trend. It started at $146,685 thousand in 2018 and rose to $177,173 thousand in 2019, demonstrating growth in the cash available to equity shareholders after capital expenditures and debt repayments. In 2020, there was a notable spike to $715,083 thousand, suggesting a significant increase in cash returnable to equity holders, likely due to lower capital expenditures or other financial activities during that year. However, 2021 saw a steep decline to $48,805 thousand, and in 2022, the FCFE turned negative to -$138,195 thousand. This negative free cash flow to equity likely indicates that the company had outflows exceeding inflows available to equity holders, potentially due to high capital expenditures, debt servicing, or other financial demands.
- Overall insights
- The data reveal that while the company improved operational cash generation initially, it struggled to maintain this progress in the later years, particularly in 2022. The sharp decline in FCFE in 2022, turning negative after a peak in 2020, suggests increasing financial pressures or investment outflows that may impact shareholder returns. These trends highlight areas requiring further investigation, including the factors driving the negative cash flow to equity and the declining operational cash generation in the most recent periods.
Price to FCFE Ratio, Current
SolarEdge Technologies Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 47,255,226 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | (138,195) |
| FCFE per share | -2.92 |
| Current share price (P) | 295.71 |
| Valuation Ratio | |
| P/FCFE | — |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Advanced Micro Devices Inc. | 170.77 |
| Analog Devices Inc. | 29.51 |
| Applied Materials Inc. | 17.79 |
| Broadcom Inc. | 34.65 |
| Intel Corp. | — |
| KLA Corp. | 31.02 |
| Lam Research Corp. | 30.92 |
| Micron Technology Inc. | — |
| NVIDIA Corp. | 72.98 |
| Qualcomm Inc. | 15.30 |
| Texas Instruments Inc. | 43.46 |
| P/FCFE, Sector | |
| Semiconductors & Semiconductor Equipment | 114.65 |
| P/FCFE, Industry | |
| Information Technology | 58.94 |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
SolarEdge Technologies Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 56,146,608 | 52,818,655 | 51,581,559 | 49,235,498 | 47,255,226 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | (138,195) | 48,805) | 715,083) | 177,173) | 146,685) | |
| FCFE per share3 | -2.46 | 0.92 | 13.86 | 3.60 | 3.10 | |
| Share price1, 4 | 295.71 | 246.07 | 321.99 | 125.95 | 42.26 | |
| Valuation Ratio | ||||||
| P/FCFE5 | — | 266.31 | 23.23 | 35.00 | 13.61 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Advanced Micro Devices Inc. | 33.46 | 44.72 | 133.51 | — | — | |
| Analog Devices Inc. | 24.14 | 34.67 | 33.98 | 37.52 | — | |
| Applied Materials Inc. | 19.17 | 27.20 | 23.21 | 19.53 | — | |
| Broadcom Inc. | 14.62 | 22.35 | 9.16 | 5.64 | — | |
| Intel Corp. | — | 14.25 | 8.57 | — | — | |
| KLA Corp. | 9.01 | 28.05 | 19.15 | 9.84 | — | |
| Lam Research Corp. | 24.95 | 34.58 | 16.89 | 6.14 | — | |
| Micron Technology Inc. | 18.66 | 37.24 | 81.71 | 13.92 | — | |
| NVIDIA Corp. | 54.83 | 35.22 | 44.24 | — | — | |
| Qualcomm Inc. | 19.13 | 17.93 | 34.91 | 16.39 | — | |
| Texas Instruments Inc. | 23.88 | 21.87 | 24.10 | — | — | |
| P/FCFE, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 29.02 | 24.87 | 17.64 | — | — | |
| P/FCFE, Industry | ||||||
| Information Technology | 26.89 | 27.39 | 23.42 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= -138,195,000 ÷ 56,146,608 = -2.46
4 Closing price as at the filing date of SolarEdge Technologies Inc. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 295.71 ÷ -2.46 = —
6 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited a substantial increase from 42.26 US$ at the end of 2018 to a peak of 321.99 US$ in 2020, representing a significant appreciation over this period. Following this peak, the share price declined to 246.07 US$ in 2021 but showed a recovery in 2022, closing at 295.71 US$.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share increased steadily from 3.1 US$ in 2018 to 3.6 US$ in 2019 and then experienced a sharp rise to 13.86 US$ in 2020. After this peak, there was a dramatic decrease to 0.92 US$ in 2021, followed by a negative FCFE per share of -2.46 US$ in 2022, suggesting a deterioration in cash flow generation available to equity shareholders.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio rose markedly from 13.61 in 2018 to 35 in 2019, then decreased to 23.23 in 2020, indicating changes in valuation relative to free cash flow. However, it surged significantly to 266.31 in 2021, reflecting the sharp drop in FCFE per share while the share price remained relatively high. No ratio is available for 2022, likely due to the negative FCFE per share making the ratio undefined or not meaningful.
- Overall Observations
- The data reflects strong initial growth until 2020 with substantial increases in both share price and FCFE per share, indicating robust financial performance and favorable market valuation. However, from 2021 onwards, FCFE per share declined sharply, turning negative in 2022, while the share price, despite fluctuations, remained elevated compared to earlier years. This divergence suggests growing investor optimism or market factors sustaining share price despite weakening cash flow fundamentals, highlighted by the extreme P/FCFE ratio in 2021 and the absence of a meaningful ratio in 2022.