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 has an excellent profitability rating, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: FSLR is growing strongly while it also seems undervalued. These ratings could make FSLR a good candidate 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

In the past year FSLR was profitable.
In the past year FSLR had a positive cash flow from operations.
FSLR had positive earnings in 4 of the past 5 years.
In the past 5 years FSLR always reported a positive cash flow from operatings.

1.2 Ratios

FSLR has a better Return On Assets (10.41%) than 79.65% of its industry peers.
With a decent Return On Equity value of 15.53%, FSLR is doing good in the industry, outperforming 78.76% of the companies in the same industry.
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

The Profit Margin of FSLR (27.73%) is better than 84.96% of its industry peers.
FSLR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.81%, FSLR belongs to the best of the industry, outperforming 89.38% of the companies in the same industry.
In the last couple of years the Operating Margin of FSLR has grown nicely.
FSLR has a Gross Margin (40.05%) which is comparable to the rest of the industry.
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

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.
Compared to 5 years ago, FSLR has more shares outstanding
The debt/assets ratio for FSLR has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 5.26 indicates that FSLR is not in any danger for bankruptcy at the moment.
FSLR has a Altman-Z score (5.26) which is comparable to the rest of the industry.
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	5.26

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 worse Current ratio (1.91) than 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

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WACC

Debt/Equity

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3. Growth

3.1 Past

FSLR 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
FSLR shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.16%.
The Revenue has been growing slightly by 6.55% on average over the past years.

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

The Earnings Per Share is expected to grow by 25.14% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.30% on average over the next years. This is quite good.

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.

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4. Valuation

4.1 Price/Earnings Ratio

FSLR is valuated rather expensively with a Price/Earnings ratio of 19.16.
FSLR's Price/Earnings ratio is rather cheap when compared to the industry. FSLR is cheaper than 92.04% of the companies in the same industry.
FSLR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
A Price/Forward Earnings ratio of 10.88 indicates a reasonable valuation of FSLR.
FSLR's Price/Forward Earnings ratio is rather cheap when compared to the industry. FSLR is cheaper than 98.23% of the companies in the same industry.
FSLR is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	19.16
Fwd PE	10.88

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FSLR is valued cheaper than 89.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FSLR is valued a bit cheaper than the industry average as 78.76% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	43.55
EV/EBITDA	12.52

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.
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.