In 2023, SMA Solar Technologie (ETR:S92) reported impressive financial results, achieving significant increases in revenue and net income. Revenue grew by 79% compared to the previous year, reaching 1.90 billion euros, while net income increased by 304% to reach 225.7 million euros. The company’s profit margin also improved to 12%, compared to 5.2% in the previous year. Additionally, earnings per share (EPS) increased to 6.50 euros from 1.61 euros in the previous year.
Despite beating analysts’ revenue estimates by just 2.3%, EPS exceeded expectations by a more substantial margin of 3.5%. Looking ahead, SMA Solar Technology is forecast to experience average annual revenue growth of 8.0% over the next three years, slightly below the expected growth rate of 8.3% for the German semiconductor industry as a whole.
However, despite this forecasted growth, SMA Solar Technology’s shares have been down by a significant margin over the past week due to market fluctuations affecting the German semiconductor industry as a whole. However, analysis suggests that the company may be undervalued based on six different valuation metrics and could be worth considering for long-term investment opportunities.
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