NASDAQ:FSLR is showing decent growth, but is still valued reasonably.

Last update: Mar 5, 2024

FIRST SOLAR INC (NASDAQ:FSLR) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:FSLR is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Growth Analysis for NASDAQ:FSLR

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:FSLR boasts a 8 out of 10:

The Earnings Per Share has grown by an impressive 677.61% over the past year.
FSLR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.80% yearly.
Looking at the last year, FSLR shows a very strong growth in Revenue. The Revenue has grown by 26.70%.
Measured over the past years, FSLR shows a quite strong growth in Revenue. The Revenue has been growing by 8.14% on average per year.
FSLR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.26% yearly.
Based on estimates for the next years, FSLR will show a quite strong growth in Revenue. The Revenue will grow by 16.62% on average per year.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:FSLR scores a 6 out of 10:

Based on the Price/Earnings ratio, FSLR is valued a bit cheaper than 78.30% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.93. FSLR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.34 indicates a reasonable valuation of FSLR.
Based on the Price/Forward Earnings ratio, FSLR is valued cheaper than 95.28% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.91. FSLR is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, FSLR is valued cheaper than 84.91% of the companies in the same industry.
FSLR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of FSLR may justify a higher PE ratio.
FSLR's earnings are expected to grow with 58.39% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NASDAQ:FSLR

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:FSLR has received a 5 out of 10:

FSLR has an Altman-Z score of 4.26. This indicates that FSLR is financially healthy and has little risk of bankruptcy at the moment.
FSLR has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
FSLR has a Debt to Equity ratio of 0.07. This is in the better half of the industry: FSLR outperforms 60.38% of its industry peers.
A Current Ratio of 3.55 indicates that FSLR has no problem at all paying its short term obligations.
A Quick Ratio of 2.92 indicates that FSLR has no problem at all paying its short term obligations.
The Quick ratio of FSLR (2.92) is better than 60.38% of its industry peers.

Profitability Assessment of NASDAQ:FSLR

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:FSLR scores a 6 out of 10:

FSLR has a Return On Assets of 8.02%. This is in the better half of the industry: FSLR outperforms 66.98% of its industry peers.
FSLR has a better Return On Equity (12.42%) than 65.09% of its industry peers.
FSLR's Return On Invested Capital of 7.73% is fine compared to the rest of the industry. FSLR outperforms 66.98% of its industry peers.
FSLR has a better Profit Margin (25.04%) than 83.96% of its industry peers.
In the last couple of years the Profit Margin of FSLR has grown nicely.
The Operating Margin of FSLR (26.70%) is better than 81.13% of its industry peers.
FSLR's Operating Margin has improved in the last couple of years.
FSLR's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of FSLR for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.