10Y annualized return is
average
at 8.7% per year
FSLR has met or exceeded earnings expectations in
some
recent quarters (1/2)
Attractive PE Ratio
Reasonable Price-to-Sales Ratio
Strong Profit Margins
High Return on Equity
Low Debt Levels
Strong Liquidity Ratios
📈 Strong Contracted Backlog
🏭 Manufacturing Capacity Expansion
🔬 Innovation in Technology
🚀 Positive Revenue Guidance
Negative Price-to-Free Cash Flow Ratio
Negative Free Cash Flow Per Share
Cash Ratio Below 1
⚠️ Warranty and Production Issues
📉 Contract Terminations
🌪️ Uncertain Policy Environment
🗓️ Back-End Loading of Revenue
First Solar demonstrates strong business quality through a solid backlog, manufacturing expansion, and innovation in technology, though it faces challenges with warranty issues and contract terminations. Future prospects appear promising with significant growth potential, albeit tempered by policy uncertainties and operational risks.
Analysis Date: February 25, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
First Solar, Inc. is a company that creates solar panels, which are devices that turn sunlight into electricity. They sell these solar panels to businesses and organizations that want to use solar energy to power their operations. Founded in 1999 and based in Arizona, First Solar operates in several countries, including the United States and Japan. Their goal is to provide clean and renewable energy solutions to help reduce reliance on traditional energy sources.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
First Solar (FSLR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared wi...
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$464.64
Current Market Price: $128.69
IV/P Ratio: 3.61x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
72.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for FSLR
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (10.66)
P/B ratio ≤ 1.5 (1.73)
Current ratio ≥ 2.0 (2.45x)
Long-term debt < Net current assets (0.16x)
Margin of safety (72.0%)
FSLR does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
16.31%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
44.06%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
30.72%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
FSLR demonstrates robust profit margins with a gross profit margin of 44.06%, operating profit margin of 34.13%, and net profit margin of 30.72%, indicating effective cost management and profitability.
The return on equity (ROE) of 17.38% suggests that the company is efficient in generating profits from shareholders' equity.
The free cash flow per share of -2.88 indicates that the company is currently not generating positive free cash flow, which could impact its ability to reinvest in growth or return capital to shareholders.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.09x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.45x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
A debt-to-equity ratio of 0.09 and a debt-to-assets ratio of 0.06 indicate that the company is maintaining a conservative approach to leverage, which enhances financial stability.
With a current ratio of 2.45 and a quick ratio of 1.93, the company shows strong short-term liquidity, suggesting it can comfortably meet its short-term obligations.
The cash ratio of 0.78 indicates that the company may not have enough cash on hand to cover its short-term liabilities, which could be a potential liquidity concern.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
First Solar reported a year-end contracted backlog of 68.5 gigawatts with an aggregate value of $20.5 billion, demonstrating a solid market position and demand for their products. This was supported by net bookings of 4.4 gigawatts at a competitive average selling price (ASP) of $0.305 per watt.
The company is set to increase its global nameplate manufacturing capacity to over 25 gigawatts by 2026, supported by new facilities in Alabama and Louisiana. This expansion places them in a strong position to meet growing demand.
First Solar is actively advancing its technology roadmap, including the production of CuRe modules and developing perovskite technology. This focus on innovation is expected to enhance their competitive edge in the solar market.
The company is facing warranty charges related to manufacturing issues with Series 7 modules, which could impact customer satisfaction and future orders. The estimated warranty losses range from $56 million to $100 million.
There were significant contract terminations amounting to 2.4 gigawatts, including 1 gigawatt in India. This raises concerns about market demand stability and execution risks.
For 2025, First Solar forecasts earnings per diluted share between $17 to $20, which represents a potential increase of approximately 50% over 2024. This indicates strong growth expectations based on their backlog and production capabilities.
The company faces significant uncertainty due to ongoing policy changes and potential tariffs impacting their international production and sales strategies. This could hinder growth in the short term.
There is a risk of delayed shipments and back-end weighted revenue recognition in 2025, which could affect cash flow and operational efficiency.