Canadian Solar Inc.
Canadian Solar Inc. Fundamental Analysis
Canadian Solar Inc. (CSIQ) shows weak financial fundamentals with a PE ratio of 83.71, profit margin of 0.27%, and ROE of 0.57%. The company generates $5.8B in annual revenue with weak year-over-year growth of -21.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -48.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CSIQ's fundamental strength across five key dimensions:
Efficiency Score
WeakCSIQ struggles to generate sufficient returns from assets.
Valuation Score
ModerateCSIQ shows balanced valuation metrics.
Growth Score
WeakCSIQ faces weak or negative growth trends.
Financial Health Score
ModerateCSIQ shows balanced financial health with some risks.
Profitability Score
WeakCSIQ struggles to sustain strong margins.
Key Financial Metrics
Is CSIQ Expensive or Cheap?
P/E Ratio
CSIQ trades at 83.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CSIQ's PEG of 0.69 indicates potential undervaluation.
Price to Book
The market values Canadian Solar Inc. at 0.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -16.80 times EBITDA. This is generally considered low.
How Well Does CSIQ Make Money?
Net Profit Margin
For every $100 in sales, Canadian Solar Inc. keeps $0.27 as profit after all expenses.
Operating Margin
Core operations generate -0.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.57 in profit for every $100 of shareholder equity.
ROA
Canadian Solar Inc. generates $0.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Canadian Solar Inc. generates limited operating cash flow of $101.78M, signaling weaker underlying cash strength.
Free Cash Flow
Canadian Solar Inc. generates weak or negative free cash flow of $-1.50B, restricting financial flexibility.
FCF Per Share
Each share generates $-22.35 in free cash annually.
FCF Yield
CSIQ converts -1.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
83.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.006
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How CSIQ Stacks Against Its Sector Peers
| Metric | CSIQ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 83.71 | 20.19 | Worse (Expensive) |
| ROE | 0.57% | 1019.00% | Weak |
| Net Margin | 0.27% | -44017.00% (disorted) | Weak |
| Debt/Equity | 2.58 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.07 | 4.60 | Neutral |
| ROA | 0.11% | -11655350.00% (disorted) | Weak |
CSIQ outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Canadian Solar Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
67.63%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-81.19%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
-232.06%
Industry Style: Cyclical, Value, Commodity
Declining