SEDG - SMA Solar Technology: Solid Earnings And Attractive Valuation Compared To Peers

2024-04-07 16:09:01 ET

Summary

• SMA Solar Technology delivered strong financial results for fiscal year 2023, with group sales growing 79% and net income quadrupling.
• The company's large scale projects segment showed particularly impressive growth and contributes to the positive outlook for 2024.
• With a positive long-term outlook for utility-scale solar projects, SMA Solar represents a potentially attractive investment opportunity in the renewable energy sector.

Despite delivering massive growth as an industry, the solar sector has not been particularly kind to investors. For example, Invesco's ( IVZ ) Solar ETF ( TAN ) has massively underperformed the S&P 500 index ( SPY ) and the very popular Invesco technology trust ETF ( QQQ ). Still, investors that have solely focused on companies specializing in solar inverters have experienced excellent returns. Companies like Enphase Energy ( ENPH ) and SolarEdge Technologies ( SEDG ) have been some of the best performing companies the last few years. This is why we believe investors that want exposure to the growth in the solar sector should probably focus on this part of the industry, and avoid the largely commoditized solar panel manufacturers....

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