244.78 USD
+1.81 (+0.74%)
We assign a fundamental rating of 6 out of 10 to FSLR. FSLR was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While FSLR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FSLR is evaluated to be cheap and growing strongly. This does not happen too often! This makes FSLR very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
- In the past year FSLR was profitable.
- FSLR had a positive operating cash flow in the past year.
- FSLR had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years FSLR had a positive operating cash flow.
1.2 Ratios
- FSLR has a better Return On Assets (10.41%) than 79.65% of its industry peers.
- FSLR's Return On Equity of 15.53% is fine compared to the rest of the industry. FSLR outperforms 78.76% of its industry peers.
- FSLR has a better Return On Invested Capital (11.26%) than 84.07% of its industry peers.
| 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
- FSLR's Profit Margin of 27.73% is amongst the best of the industry. FSLR outperforms 84.96% of its industry peers.
- FSLR's Profit Margin has improved in the last couple of years.
- The Operating Margin of FSLR (29.81%) is better than 89.38% of its industry peers.
- In the last couple of years the Operating Margin of FSLR has grown nicely.
- The Gross Margin of FSLR (40.05%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of FSLR 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 just above the Cost of Capital (WACC), so FSLR is still creating some value.
- The number of shares outstanding for FSLR remains at a similar level compared to 1 year ago.
- The number of shares outstanding for FSLR has been increased compared to 5 years ago.
- FSLR has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.17 indicates that FSLR is not in any danger for bankruptcy at the moment.
- FSLR has a Altman-Z score of 5.17. This is comparable to the rest of the industry: FSLR outperforms 57.52% of its industry peers.
- FSLR 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.
- FSLR's Debt to FCF ratio of 1.28 is fine compared to the rest of the industry. FSLR outperforms 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 | 5.17 |
ROIC/WACC1.03
WACC10.89%
2.3 Liquidity
- A Current Ratio of 1.91 indicates that FSLR should not have too much problems paying its short term obligations.
- FSLR has a Current ratio of 1.91. This is in the lower half of the industry: FSLR underperforms 76.11% of its industry peers.
- A Quick Ratio of 1.55 indicates that FSLR should not have too much problems paying its short term obligations.
- FSLR's Quick ratio of 1.55 is on the low side compared to the rest of the industry. FSLR is outperformed by 75.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.05% over the past year.
- The Earnings Per Share has been growing by 52.90% on average over the past years. This is a very strong growth
- FSLR shows a strong growth in Revenue. In the last year, 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 Year21.79%
Revenue Next 2Y21.13%
Revenue Next 3Y18.71%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.80, which indicates a rather expensive current valuation of FSLR.
- Based on the Price/Earnings ratio, FSLR is valued cheaply inside the industry as 92.04% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.25. FSLR is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 10.68 indicates a reasonable valuation of FSLR.
- 98.23% of the companies in the same industry are more expensive than FSLR, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, FSLR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FSLR indicates a rather cheap valuation: FSLR is cheaper than 90.27% of the companies listed in the same industry.
- 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 | 42.74 | ||
| EV/EBITDA | 12.17 |
4.3 Compensation for Growth
- FSLR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- FSLR has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as FSLR's earnings are expected to grow with 32.43% in the coming years.
PEG (NY)0.95
PEG (5Y)0.36
EPS Next 2Y35.69%
EPS Next 3Y32.43%
5. Dividend
5.1 Amount
- No dividends for FSLR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FIRST SOLAR INC / FSLR FAQ
Can you provide the ChartMill fundamental rating for FIRST SOLAR INC?
ChartMill assigns a fundamental rating of 6 / 10 to FSLR.
What is the valuation status for FSLR stock?
ChartMill assigns a valuation rating of 8 / 10 to FIRST SOLAR INC (FSLR). This can be considered as Undervalued.
Can you provide the profitability details for FIRST SOLAR INC?
FIRST SOLAR INC (FSLR) has a profitability rating of 7 / 10.
What is the financial health of FIRST SOLAR INC (FSLR) stock?
The financial health rating of FIRST SOLAR INC (FSLR) is 5 / 10.
What is the expected EPS growth for FIRST SOLAR INC (FSLR) stock?
The Earnings per Share (EPS) of FIRST SOLAR INC (FSLR) is expected to grow by 19.73% in the next year.