SolarEdge Technologies, Inc. SEDG

Competitive advantage analysis · technology

Corporate Default
Overall moat score
39/100
Developing

Ranked against 27 peers in Solar

About SolarEdge Technologies, Inc.

SolarEdge Technologies, Inc., together with its subsidiaries, operates as an energy technology company in the United States, Europe, and internationally. The company offers power optimizers and DC-to-AC inverters; Storage Solutions, such as home battery 400V and CSS-OD solution; EV chargers for residential and commercial applications; SolarEdge ONE, an energy optimization system; and cloud-based monitoring platform. It also provides mySolarEdge app, … Full SEDG analysis →

Key strengths

  • Revenue Growth Consistent Revenue growth volatility is low (stability score 0.71), suggesting sticky customer base.
  • Cash Generation Consistent Cash generation is consistent (score 0.80), indicating reliable business model.

Key risks

  • Commodity Pressure / Weak Differentiation Gross margin at 36.4th percentile with high volatility suggests weak pricing power or commoditized products.
  • ROIC Below WACC or Peers ROIC at 20.0th percentile suggests inefficient capital deployment.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Weak
19
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where SEDG ranks in Solar

SolarEdge Technologies, Inc. ranks #16 of 28 scored companies in Solar by moat score — the top 57%. The widest moat in the group is First Solar, Inc. (FSLR) at 89/100.

# Company Moat score Rating
12 JinkoSolar Holding Company Limi JKS 47/100 Developing
13 FTC Solar, Inc. FTCI 42/100 Developing
14 Sunrun Inc. RUN 40/100 Developing
15 SUNation Energy, Inc. SUNE 39/100 Developing
16 SolarEdge Technologies, Inc. SEDG 39/100 Developing
17 SunPower Inc. SPWR 39/100 Developing
18 Turbo Energy, S.A. TURB 39/100 Developing
19 Solarmax Technology Inc. SMXT 35/100 Developing
20 Maxeon Solar Technologies, Ltd. MAXN 33/100 Developing

See every General Corporate company ranked by moat score →

How SEDG scores on the Corporate Default defenses

Pricing Power

Score 19 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 46 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 76 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 21 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 63 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 23 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding SEDG's moat

What is SolarEdge Technologies, Inc.'s moat score?

SolarEdge Technologies, Inc. (SEDG) scores 39 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #16 of 28 scored companies in Solar, the top 57%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 27 companies in Solar. Its strongest defense is Customer Stickiness (76/100) and its weakest is Pricing Power (19/100).

How does SolarEdge Technologies, Inc. compare with other Solar companies?

SolarEdge Technologies, Inc. ranks #16 of 28 scored companies in Solar by moat score. The widest moat in Solar is First Solar, Inc. (FSLR) at 89/100. The companies ranked closest are SUNation Energy, Inc. (SUNE) at 39 just above it and SunPower Inc. (SPWR) at 39 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 27 companies in Solar. The defenses are then weighted to produce the overall score out of 100.

Why is SolarEdge Technologies, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for SolarEdge Technologies, Inc.?

The Corporate Default template measures 6 defenses, and SEDG scores: Pricing Power (19), Cost Advantage (46), Customer Stickiness (76), Capital Efficiency (21), Resilience (63), Scale & Market Position (23). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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