SolarEdge Technologies Price To Earning vs. Operating Margin

2ED Stock  EUR 13.49  0.47  3.37%   
Based on SolarEdge Technologies' profitability indicators, SolarEdge Technologies may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess SolarEdge Technologies' ability to earn profits and add value for shareholders.
For SolarEdge Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SolarEdge Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SolarEdge Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SolarEdge Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SolarEdge Technologies over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in SolarEdge Stock please use our How to Invest in SolarEdge Technologies guide.
Please note, there is a significant difference between SolarEdge Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if SolarEdge Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SolarEdge Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

SolarEdge Technologies Operating Margin vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining SolarEdge Technologies's current stock value. Our valuation model uses many indicators to compare SolarEdge Technologies value to that of its competitors to determine the firm's financial worth.
SolarEdge Technologies is number one stock in price to earning category among its peers. It also is number one stock in operating margin category among its peers . The ratio of Price To Earning to Operating Margin for SolarEdge Technologies is about  273.93 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the SolarEdge Technologies' earnings, one of the primary drivers of an investment's value.

SolarEdge Operating Margin vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

SolarEdge Technologies

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
24.90 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

SolarEdge Technologies

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.09 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

SolarEdge Operating Margin Comparison

SolarEdge Technologies is currently under evaluation in operating margin category among its peers.

SolarEdge Technologies Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in SolarEdge Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SolarEdge Technologies will eventually generate negative long term returns. The profitability progress is the general direction of SolarEdge Technologies' change in net profit over the period of time. It can combine multiple indicators of SolarEdge Technologies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current optimized inverter systems for solar photovoltaic installations worldwide. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel. SOLAREDGE TECHN operates under Solar classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1737 people.

SolarEdge Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on SolarEdge Technologies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of SolarEdge Technologies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the SolarEdge Technologies' important profitability drivers and their relationship over time.

Use SolarEdge Technologies in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if SolarEdge Technologies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SolarEdge Technologies will appreciate offsetting losses from the drop in the long position's value.

SolarEdge Technologies Pair Trading

SolarEdge Technologies Pair Trading Analysis

The ability to find closely correlated positions to SolarEdge Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SolarEdge Technologies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back SolarEdge Technologies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling SolarEdge Technologies to buy it.
The correlation of SolarEdge Technologies is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as SolarEdge Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SolarEdge Technologies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for SolarEdge Technologies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your SolarEdge Technologies position

In addition to having SolarEdge Technologies in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Crypto And Gold Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in SolarEdge Stock

When determining whether SolarEdge Technologies is a strong investment it is important to analyze SolarEdge Technologies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact SolarEdge Technologies' future performance. For an informed investment choice regarding SolarEdge Stock, refer to the following important reports:
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For more detail on how to invest in SolarEdge Stock please use our How to Invest in SolarEdge Technologies guide.
You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
To fully project SolarEdge Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SolarEdge Technologies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include SolarEdge Technologies' income statement, its balance sheet, and the statement of cash flows.
Potential SolarEdge Technologies investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although SolarEdge Technologies investors may work on each financial statement separately, they are all related. The changes in SolarEdge Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on SolarEdge Technologies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.