SolarEdge slump hits another low as market cap drops below $1 billion
SolarEdge slump hits another low as market cap drops below $1 billion
The renewable energy company peaked at a value of almost $20 billion in 2022, but has lost 82% of its market cap since the start of the year.
SolarEdge has hit another low, with its value falling below one billion dollars on Monday, now trading at around $950 million. This is a sharp decline from its peak in the summer of 2022, when the company’s value approached $20 billion. As of now, the stock has lost 82% of its value since the start of the year.
Since its peak, excess inventory of the company’s products in Europe, combined with rising interest rates in the U.S., which have significantly increased the cost of installing solar systems on rooftops, has led to a sharp decline in the company's value and sales. For example, in the second quarter of this year, the company reported sales of $265 million, a 73% decrease compared to the same quarter in 2023. The company also recorded a loss of $1.90 per share in the quarter, missing analysts' expectations of a loss of $1.58 per share.
Following the decline in both its financial performance and market value, SolarEdge was removed from the S&P 500 index in December 2023, after being the first and only Israeli company to be included in the index.
In response to the crisis, the company has implemented several measures, including waves of layoffs and changes in management. In July, SolarEdge announced the layoff of 400 employees, about half of whom are in Israel. This was the second wave of layoffs since the beginning of the year; in January, the company cut around 900 additional employees, roughly 16% of its total workforce at the time. Following both rounds of layoffs, SolarEdge now employs approximately 4,200 people.
Additionally, about two months ago, CEO Zvi Lando stepped down from his position, though he continues to serve as a director and consultant for the company. Ronen Faier, the company’s CFO for the past 14 years, was appointed as Lando’s temporary replacement. Faier had previously announced his intention to leave the CFO position in June.
