First Solar, Inc.
First Solar, Inc. Fundamental Analysis
First Solar, Inc. (FSLR) shows strong financial fundamentals with a PE ratio of 18.41, profit margin of 27.73%, and ROE of 16.61%. The company generates $5.1B 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 88.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze FSLR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFSLR demonstrates superior asset utilization.
Valuation Score
ExcellentFSLR trades at attractive valuation levels.
Growth Score
ExcellentFSLR delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFSLR maintains a strong and stable balance sheet.
Profitability Score
ExcellentFSLR achieves industry-leading margins.
Key Financial Metrics
Is FSLR Expensive or Cheap?
P/E Ratio
FSLR trades at 18.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FSLR's PEG of 1.62 indicates fair valuation.
Price to Book
The market values First Solar, Inc. at 2.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.23 times EBITDA. This signals the market has high growth expectations.
How Well Does FSLR Make Money?
Net Profit Margin
For every $100 in sales, First Solar, Inc. keeps $27.73 as profit after all expenses.
Operating Margin
Core operations generate 29.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.61 in profit for every $100 of shareholder equity.
ROA
First Solar, Inc. generates $10.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Solar, Inc. generates strong operating cash flow of $1.63B, reflecting robust business health.
Free Cash Flow
First Solar, Inc. generates strong free cash flow of $614.77M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.73 in free cash annually.
FCF Yield
FSLR converts 2.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How FSLR Stacks Against Its Sector Peers
| Metric | FSLR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.41 | 20.19 | Neutral |
| ROE | 16.61% | 1019.00% | Weak |
| Net Margin | 27.73% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.10 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.91 | 4.60 | Neutral |
| ROA | 10.41% | -11655350.00% (disorted) | Strong |
FSLR outperforms its industry in 2 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: Cyclical, Value, Commodity
High GrowthEPS CAGR
1209.00%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
588.05%
Industry Style: Cyclical, Value, Commodity
High Growth