FIRST SOLAR INC (1FSLR.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1FSLR - US3364331070 - Common Stock
208 EUR
-22 (-9.57%)
We assign a fundamental rating of 6 out of 10 to 1FSLR. 1FSLR was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of 1FSLR get a neutral evaluation. Nothing too spectacular is happening here. 1FSLR has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes 1FSLR very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
- In the past year 1FSLR was profitable.
- 1FSLR had a positive operating cash flow in the past year.
- 1FSLR had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years 1FSLR had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.41%, 1FSLR is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
- 1FSLR has a Return On Equity of 15.53%. This is comparable to the rest of the industry: 1FSLR outperforms 56.94% of its industry peers.
- 1FSLR has a Return On Invested Capital of 10.69%. This is in the better half of the industry: 1FSLR outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 15.53% | ||
| ROIC | 10.69% |
ROA(3y)6.05%
ROA(5y)6.01%
ROE(3y)9.29%
ROE(5y)8.59%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- 1FSLR has a Profit Margin of 27.73%. This is amongst the best in the industry. 1FSLR outperforms 80.56% of its industry peers.
- In the last couple of years the Profit Margin of 1FSLR has grown nicely.
- 1FSLR has a Operating Margin of 29.81%. This is in the better half of the industry: 1FSLR outperforms 75.00% of its industry peers.
- 1FSLR's Operating Margin has improved in the last couple of years.
- 1FSLR has a worse Gross Margin (40.05%) than 66.67% of its industry peers.
- In the last couple of years the Gross Margin of 1FSLR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.81% | ||
| PM (TTM) | 27.73% | ||
| GM | 40.05% |
OM growth 3Y30.14%
OM growth 5Y38.22%
PM growth 3Y24.2%
PM growth 5YN/A
GM growth 3Y20.94%
GM growth 5Y19.76%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1FSLR is destroying value.
- 1FSLR has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1FSLR has more shares outstanding
- Compared to 1 year ago, 1FSLR has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.15 indicates that 1FSLR is not in any danger for bankruptcy at the moment.
- 1FSLR has a Altman-Z score (5.15) which is comparable to the rest of the industry.
- 1FSLR has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.28, 1FSLR is doing good in the industry, outperforming 65.28% of the companies in the same industry.
- 1FSLR has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.06, 1FSLR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 5.15 |
ROIC/WACC0.99
WACC10.79%
2.3 Liquidity
- 1FSLR has a Current Ratio of 1.91. This is a normal value and indicates that 1FSLR is financially healthy and should not expect problems in meeting its short term obligations.
- 1FSLR has a worse Current ratio (1.91) than 69.44% of its industry peers.
- 1FSLR has a Quick Ratio of 1.55. This is a normal value and indicates that 1FSLR is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of 1FSLR (1.55) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- 1FSLR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.05%, which is quite good.
- The Earnings Per Share has been growing by 52.90% on average over the past years. This is a very strong growth
- 1FSLR shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.16%.
- 1FSLR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.55% yearly.
EPS 1Y (TTM)8.05%
EPS 3Y56.95%
EPS 5Y52.9%
EPS Q2Q%26.57%
Revenue 1Y (TTM)31.16%
Revenue growth 3Y12.89%
Revenue growth 5Y6.55%
Sales Q2Q%79.67%
3.2 Future
- 1FSLR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.14% yearly.
- The Revenue is expected to grow by 13.30% on average over the next years. This is quite good.
EPS Next Y19.75%
EPS Next 2Y35.88%
EPS Next 3Y31.82%
EPS Next 5Y25.14%
Revenue Next Year21.88%
Revenue Next 2Y21.26%
Revenue Next 3Y18.79%
Revenue Next 5Y13.3%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 18.55, the valuation of 1FSLR can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of 1FSLR indicates a rather cheap valuation: 1FSLR is cheaper than 87.50% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1FSLR is valued a bit cheaper.
- A Price/Forward Earnings ratio of 10.51 indicates a reasonable valuation of 1FSLR.
- Based on the Price/Forward Earnings ratio, 1FSLR is valued cheaper than 95.83% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1FSLR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
- 1FSLR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1FSLR is cheaper than 79.17% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1FSLR is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.19 | ||
| EV/EBITDA | 12.1 |
4.3 Compensation for Growth
- 1FSLR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1FSLR has a very decent profitability rating, which may justify a higher PE ratio.
- 1FSLR's earnings are expected to grow with 31.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)0.35
EPS Next 2Y35.88%
EPS Next 3Y31.82%
5. Dividend
5.1 Amount
- 1FSLR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FIRST SOLAR INC / 1FSLR.MI FAQ
Can you provide the ChartMill fundamental rating for FIRST SOLAR INC?
ChartMill assigns a fundamental rating of 6 / 10 to 1FSLR.MI.
What is the valuation status for 1FSLR stock?
ChartMill assigns a valuation rating of 7 / 10 to FIRST SOLAR INC (1FSLR.MI). This can be considered as Undervalued.
What is the profitability of 1FSLR stock?
FIRST SOLAR INC (1FSLR.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for 1FSLR stock?
The Price/Earnings (PE) ratio for FIRST SOLAR INC (1FSLR.MI) is 18.55 and the Price/Book (PB) ratio is 2.88.