Taking everything into account, FSLR scores 6 out of 10 in our fundamental rating. FSLR was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. FSLR scores excellent on profitability, but there are some minor concerns on its financial health. FSLR is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, FSLR could be worth investigating further for value and growth investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

FSLR had positive earnings in the past year.
FSLR had a positive operating cash flow in the past year.
Of the past 5 years FSLR 4 years were profitable.
FSLR had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

FSLR has a better Return On Assets (10.41%) than 79.65% of its industry peers.
Looking at the Return On Equity, with a value of 15.53%, FSLR is in the better half of the industry, outperforming 78.76% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.26%, FSLR belongs to the best of the industry, outperforming 84.07% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	10.41%
ROE	15.53%
ROIC	11.26%

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

Looking at the Profit Margin, with a value of 27.73%, FSLR belongs to the top of the industry, outperforming 84.96% of the companies in the same industry.
In the last couple of years the Profit Margin of FSLR has grown nicely.
FSLR has a better Operating Margin (29.81%) than 89.38% of its industry peers.
FSLR's Operating Margin has improved in the last couple of years.
FSLR has a Gross Margin of 40.05%. This is comparable to the rest of the industry: FSLR outperforms 42.48% of its industry peers.
FSLR's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FSLR is creating some value.
Compared to 1 year ago, FSLR has about the same amount of shares outstanding.
The number of shares outstanding for FSLR has been increased compared to 5 years ago.
Compared to 1 year ago, FSLR has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 5.12 indicates that FSLR is not in any danger for bankruptcy at the moment.
FSLR has a Altman-Z score (5.12) which is comparable to the rest of the industry.
The Debt to FCF ratio of FSLR is 1.28, which is an excellent value as it means it would take FSLR, only 1.28 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FSLR (1.28) is better than 72.57% of its industry peers.
FSLR has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FSLR (0.06) is better than 61.95% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.06
Debt/FCF	1.28
Altman-Z	5.12

ROIC/WACC1.04

WACC10.8%

2.3 Liquidity

A Current Ratio of 1.91 indicates that FSLR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.91, FSLR is doing worse than 75.22% of the companies in the same industry.
FSLR has a Quick Ratio of 1.55. This is a normal value and indicates that FSLR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FSLR (1.55) is worse than 74.34% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.91
Quick Ratio	1.55

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.05% over the past year.
FSLR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.90% yearly.
Looking at the last year, FSLR shows a very strong growth in Revenue. The Revenue has grown by 31.16%.
FSLR 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

Based on estimates for the next years, FSLR will show a very strong growth in Earnings Per Share. The EPS will grow by 25.14% on average per year.
Based on estimates for the next years, FSLR will show a quite strong growth in Revenue. The Revenue will grow by 13.30% on average per year.

EPS Next Y19.73%

EPS Next 2Y35.69%

EPS Next 3Y32.43%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 18.41, FSLR is valued on the expensive side.
FSLR's Price/Earnings ratio is rather cheap when compared to the industry. FSLR is cheaper than 92.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.32. FSLR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.46, which indicates a very decent valuation of FSLR.
Based on the Price/Forward Earnings ratio, FSLR is valued cheaply inside the industry as 98.23% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FSLR to the average of the S&P500 Index (24.32), we can say FSLR is valued rather cheaply.

		Industry Rank	Sector Rank
PE	18.41
Fwd PE	10.46

4.2 Price Multiples

91.15% of the companies in the same industry are more expensive than FSLR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FSLR indicates a somewhat cheap valuation: FSLR is cheaper than 77.88% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	41.85
EV/EBITDA	12

4.3 Compensation for Growth

The 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 32.43% in the coming years. This may justify a more expensive valuation.