FIRST SOLAR INC (FSLR)
US3364331070 - Common Stock
FSLR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. FSLR has an excellent profitability rating, but there are concerns on its financial health. FSLR is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
In the past year FSLR was profitable.
FSLR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FSLR reported negative net income in multiple years.
In the past 5 years FSLR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 10.91%, FSLR is doing good in the industry, outperforming 75.93% of the companies in the same industry.
The Return On Equity of FSLR (16.44%) is better than 75.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.87%, FSLR belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.91% | ||
| ROE | 16.44% | ||
| ROIC | 10.87% |
ROA(3y)4.6%
ROA(5y)3.58%
ROE(3y)6.51%
ROE(5y)4.9%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 32.41%, FSLR belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
FSLR's Profit Margin has improved in the last couple of years.
FSLR has a better Operating Margin (34.49%) than 94.44% of its industry peers.
FSLR's Operating Margin has improved in the last couple of years.
FSLR has a Gross Margin (46.54%) which 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 | 34.49% | ||
| PM (TTM) | 32.41% | ||
| GM | 46.54% |
OM growth 3Y30.79%
OM growth 5Y71.74%
PM growth 3Y19.43%
PM growth 5Y31.24%
GM growth 3Y16.01%
GM growth 5Y17.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FSLR is destroying value.
The number of shares outstanding for FSLR has been increased compared to 1 year ago.
Compared to 5 years ago, FSLR has more shares outstanding
The debt/assets ratio for FSLR is higher compared to a year ago.
2.2 Solvency
FSLR has an Altman-Z score of 4.62. This indicates that FSLR is financially healthy and has little risk of bankruptcy at the moment.
FSLR's Altman-Z score of 4.62 is in line compared to the rest of the industry. FSLR outperforms 59.26% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that FSLR is not too dependend on debt financing.
FSLR has a Debt to Equity ratio of 0.05. This is comparable to the rest of the industry: FSLR outperforms 57.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.62 |
ROIC/WACC0.74
WACC14.65%
2.3 Liquidity
FSLR has a Current Ratio of 2.14. This indicates that FSLR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.14, FSLR is doing worse than 70.37% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that FSLR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.44, FSLR is doing worse than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
FSLR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 172.62%, which is quite impressive.
The Earnings Per Share has been growing by 41.80% on average over the past years. This is a very strong growth
Looking at the last year, FSLR shows a very strong growth in Revenue. The Revenue has grown by 21.76%.
The Revenue has been growing by 8.14% on average over the past years. This is quite good.
EPS 1Y (TTM)172.62%
EPS 3Y27.1%
EPS 5Y41.8%
EPS Q2Q%34%
Revenue 1Y (TTM)21.76%
Revenue growth 3Y6.97%
Revenue growth 5Y8.14%
Sales Q2Q%10.81%
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 35.00% on average per year.
FSLR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.98% yearly.
EPS Next Y74.3%
EPS Next 2Y65.82%
EPS Next 3Y56.63%
EPS Next 5Y35%
Revenue Next Year20.97%
Revenue Next 2Y26.4%
Revenue Next 3Y24.51%
Revenue Next 5Y16.98%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
FSLR is valuated correctly with a Price/Earnings ratio of 15.10.
Compared to the rest of the industry, the Price/Earnings ratio of FSLR indicates a rather cheap valuation: FSLR is cheaper than 87.96% of the companies listed in the same industry.
FSLR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.65.
Based on the Price/Forward Earnings ratio of 8.55, the valuation of FSLR can be described as reasonable.
Based on the Price/Forward Earnings ratio, FSLR is valued cheaper than 99.07% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FSLR to the average of the S&P500 Index (23.56), we can say FSLR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 8.55 |
4.2 Price Multiples
85.19% of the companies in the same industry are more expensive than FSLR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.99 |
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 56.63% in the coming years.
PEG (NY)0.2
PEG (5Y)0.36
EPS Next 2Y65.82%
EPS Next 3Y56.63%
5. Dividend
5.1 Amount
FSLR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FIRST SOLAR INC
NASDAQ:FSLR (11/21/2024, 4:25:36 PM)
After market: 182.5 +0.55 (+0.3%)181.95
-2.89 (-1.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 8.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.2
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.91% | ||
| ROE | 16.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.49% | ||
| PM (TTM) | 32.41% | ||
| GM | 46.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)172.62%
EPS 3Y27.1%
EPS 5Y
EPS Q2Q%
EPS Next Y74.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.76%
Revenue growth 3Y6.97%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y