First Solar, Inc.
First Solar, Inc. Fundamental Analysis
First Solar, Inc. (FSLR.SW) shows strong financial fundamentals with a PE ratio of 20.22, profit margin of 27.19%, and ROE of 11.48%. The company generates $3.0B in annual revenue with strong year-over-year growth of 26.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FSLR.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakFSLR.SW struggles to generate sufficient returns from assets.
Valuation Score
ModerateFSLR.SW shows balanced valuation metrics.
Growth Score
ExcellentFSLR.SW delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFSLR.SW maintains a strong and stable balance sheet.
Profitability Score
WeakFSLR.SW struggles to sustain strong margins.
Key Financial Metrics
Is FSLR.SW Expensive or Cheap?
P/E Ratio
FSLR.SW trades at 20.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FSLR.SW's PEG of 6.44 indicates potential overvaluation.
Price to Book
The market values First Solar, Inc. at 2.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.55 times EBITDA. This signals the market has high growth expectations.
How Well Does FSLR.SW Make Money?
Net Profit Margin
For every $100 in sales, First Solar, Inc. keeps $27.19 as profit after all expenses.
Operating Margin
Core operations generate 32.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.48 in profit for every $100 of shareholder equity.
ROA
First Solar, Inc. generates $7.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Solar, Inc. produces operating cash flow of $316.40M, showing steady but balanced cash generation.
Free Cash Flow
First Solar, Inc. generates weak or negative free cash flow of $-377.96M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.53 in free cash annually.
FCF Yield
FSLR.SW converts -2.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How FSLR.SW Stacks Against Its Sector Peers
| Metric | FSLR.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.22 | 33.94 | Better (Cheaper) |
| ROE | 11.48% | 1002.00% | Weak |
| Net Margin | 27.19% | -48086.00% (disorted) | Strong |
| Debt/Equity | 0.12 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 1.90 | 5.74 | Neutral |
| ROA | 7.98% | -288351.00% (disorted) | Weak |
FSLR.SW outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews First Solar, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.13%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
1209.00%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
588.05%
Industry Style: Growth, Innovation, High Beta
High Growth