Q: Why is CSIQ Canadian Solar Inc doing so poorly & SEDG Solaredge Technologies Inc seems to be doing better?
Thank you.
Thank you.
5i Research Answer:
CSIQ is quite small at $800M market cap, has been losing (lots) of money and has had negative cash flow of (combined) more than $1B in the last two years. It has a large debt level (more than $6B) and pays $132M in interest charges each year, which wipes out profit. Investors are also negative on its China exposure. SEDG is 4x as large, has net cash, positive cash flow and is expected to be highly profitable in 2027.