SEDGCAUTIOUS

FCF Yield

2.6%

Higher than 38% of Energy sector peers

Updated 467h ago

Sector Performance

38th percentile

SEDG

2.6%

Sector Median

3.2%

Sector Avg

-39.0%

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Deep Analysis

SolarEdge's current Free Cash Flow (FCF) Yield of 2.6% means that for every dollar of its stock price, the company generates about 2.6 cents in cash flow from operations after capital spending — a measure of how much cash return an investor might expect.

This yield sits well below the sector median of 5.7%, placing SolarEdge in the 21st percentile among its energy peers, indicating weaker cash generation relative to most competitors. The year-over-year change is not available, and the trend over the last eight quarters is also not available; however, the quarter-over-quarter change shows a decline of 44.7%, from 4.7% to 2.6%. This combination of a low FCF Yield and a sharp quarterly decline suggests increased risk, as the company's ability to convert earnings into cash has worsened recently. The metric contradicts the overall NEUTRAL verdict by pointing to below-average cash returns and a deteriorating trend, which would typically lean toward bearish.

Frequently Asked Questions

What does the FCF Yield tell investors about SEDG?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does SEDG's FCF Yield compare to its sector?

SEDG's FCF Yield of 2.6% compares to a Energy sector median of 3.2%, placing it in the 38th percentile.

Who are SEDG's closest peers by FCF Yield?

The closest Energy peers by FCF Yield include: EPD (3.7%), DEN (2.7%), XOM (3.9%), ENB (2.5%), ARRY (5.7%).

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

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SEDG

2.6%

Sector Median

3.2%

Sector Avg

-39.0%

How SEDG's FCF Yield compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.