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Emeren Group

SOL
41
Solar · Energy
Price
$1.94
+0.01 (+0.52%)
Market Cap
$995.6M
Exchange
United States
Winston Score
41
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+4.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 49.8M (2020) → 51.8M (2024)

Emeren Group is a Chinese-founded solar energy company that develops, builds, and sells solar power projects around the world. Its main business is creating solar farms — large fields of solar panels that generate electricity — and then selling those completed projects to investors or utilities. The company also keeps some projects and earns money from the electricity they produce over time.

Emeren makes money two ways: selling finished solar projects in one-time deals and collecting ongoing revenue from projects it continues to own and operate. It works mainly in Europe, North America, and parts of Asia, with a growing focus on markets like Italy, Germany, and the United States. The company is relatively small, and its heavy operating losses show it spends significantly more than it earns right now. The key risk is that project development is lumpy and unpredictable — revenue can swing sharply depending on how many projects close in a given year.

Winston Score History

Score breakdown

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Quality

Gross Margin
60.8%
Premium pricing power — 60.8% gross margin
Operating Margin
43.6%
Excellent — 43.6% operating margin
ROCE
1.9%
Weak — 1.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-30.5%
Shrinking sales (-30.5% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
47.4%
Converts sales into free cash efficiently (47.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.16
Conservative — low debt load (0.16)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
15.4x
Fair value — P/E 15.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+5.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (15.4 → 9.5)

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Dividends

Not applicable for this business.
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