SEDGCAUTIOUS

SEDG Return on Equity (ROE) Analysis

-72.5%

Higher than 0% of Energy sector peers

Updated 622h ago·SEC filings & market data

Key Takeaway

With a Return on Equity (ROE) of -72.5%, SolarEdge is currently destroying shareholder equity — ROE measures net income as a percentage of shareholders' equity, so a negative value means the company is reporting losses relative to the capital invested by shareholders.

Sector Performance

0th percentile

SEDG

-72.5%

Sector Median

11.3%

Sector Avg

6.9%

Prior Period

-94.8%(May 2026)

↑ Improving

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Deep Analysis

This sits far below the Energy sector median of 11.8%, placing the company at the 0th percentile among sector peers, meaning it has the worst ROE in its peer group. The year-over-year change and eight-quarter trend direction are both listed as N/A, but the quarter-over-quarter change shows an improvement of +23.5% — from -94.8% to -72.5% — indicating the loss rate narrowed in a single quarter. The combination of an extremely negative ROE with a steep recent improvement implies a high-risk scenario where losses remain severe but are easing, creating a potential turnaround opportunity if the trend continues. This metric strongly contradicts the overall NEUTRAL verdict, as an ROE this far below the sector median and deeply in negative territory typically signals a distressed financial position rather than a balanced risk-reward profile.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about SEDG?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does SEDG's Return on Equity (ROE) compare to its sector?

SEDG's Return on Equity (ROE) of -72.5% compares to a Energy sector median of 11.3%, placing it in the 0th percentile.

Who are SEDG's closest peers by Return on Equity (ROE)?

The closest Energy peers by Return on Equity (ROE) include: TRP (11.3%), SHEL (10.7%), ET (12.4%), IMO (12.4%), MTDR (10.1%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.