CANADIAN SOLAR INC (CSIQ)
CA1366351098 - Common Stock
We assign a fundamental rating of 3 out of 10 to CSIQ. CSIQ was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. While CSIQ is still in line with the averages on profitability rating, there are concerns on its financial health. CSIQ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CSIQ was profitable.
In the past 5 years CSIQ has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: CSIQ reported negative operating cash flow in multiple years.
1.2 Ratios
CSIQ's Return On Assets of 3.10% is in line compared to the rest of the industry. CSIQ outperforms 56.88% of its industry peers.
CSIQ has a better Return On Equity (14.17%) than 72.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.97%, CSIQ is in the better half of the industry, outperforming 69.72% of the companies in the same industry.
CSIQ had an Average Return On Invested Capital over the past 3 years of 4.07%. This is significantly below the industry average of 10.82%.
The 3 year average ROIC (4.07%) for CSIQ is below the current ROIC(6.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 14.17% | ||
| ROIC | 6.97% |
ROA(3y)2.08%
ROA(5y)2.33%
ROE(3y)9.45%
ROE(5y)10%
ROIC(3y)4.07%
ROIC(5y)4.28%
1.3 Margins
With a Profit Margin value of 4.48%, CSIQ perfoms like the industry average, outperforming 52.29% of the companies in the same industry.
In the last couple of years the Profit Margin of CSIQ has declined.
The Operating Margin of CSIQ (7.47%) is comparable to the rest of the industry.
CSIQ's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 17.95%, CSIQ is not doing good in the industry: 79.82% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CSIQ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.47% | ||
| PM (TTM) | 4.48% | ||
| GM | 17.95% |
OM growth 3Y2.03%
OM growth 5Y-9.37%
PM growth 3Y-5.15%
PM growth 5Y-10.67%
GM growth 3Y-5.38%
GM growth 5Y-4.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSIQ is creating some value.
Compared to 1 year ago, CSIQ has more shares outstanding
CSIQ has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CSIQ has been reduced compared to a year ago.
2.2 Solvency
CSIQ has an Altman-Z score of 1.22. This is a bad value and indicates that CSIQ is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.22, CSIQ is doing worse than 67.89% of the companies in the same industry.
A Debt/Equity ratio of 1.09 is on the high side and indicates that CSIQ has dependencies on debt financing.
CSIQ has a Debt to Equity ratio of 1.09. This is amonst the worse of the industry: CSIQ underperforms 84.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC1.1
WACC6.34%
2.3 Liquidity
CSIQ has a Current Ratio of 1.16. This is a normal value and indicates that CSIQ is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.16, CSIQ is doing worse than 88.07% of the companies in the same industry.
CSIQ has a Quick Ratio of 1.16. This is a bad value and indicates that CSIQ is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.91, CSIQ is not doing good in the industry: 85.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
CSIQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.86%.
The Revenue has been growing slightly by 1.94% in the past year.
CSIQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.25% yearly.
EPS 1Y (TTM)-35.86%
EPS 3Y16.72%
EPS 5Y0%
EPS Q2Q%-84.03%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y29.86%
Revenue growth 5Y15.25%
Sales Q2Q%-21.88%
3.2 Future
The Earnings Per Share is expected to grow by 23.07% on average over the next years. This is a very strong growth
Based on estimates for the next years, CSIQ will show a small growth in Revenue. The Revenue will grow by 5.71% on average per year.
EPS Next Y25.48%
EPS Next 2Y14.12%
EPS Next 3Y15.23%
EPS Next 5Y23.07%
Revenue Next Year10.93%
Revenue Next 2Y1.16%
Revenue Next 3Y0.59%
Revenue Next 5Y5.71%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CSIQ is valuated cheaply with a Price/Earnings ratio of 5.63.
Based on the Price/Earnings ratio, CSIQ is valued cheaper than 98.17% of the companies in the same industry.
CSIQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.29.
With a Price/Forward Earnings ratio of 3.21, the valuation of CSIQ can be described as very cheap.
98.17% of the companies in the same industry are more expensive than CSIQ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, CSIQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.63 | ||
| Fwd PE | 3.21 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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.
CSIQ's earnings are expected to grow with 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y14.12%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
No dividends for CSIQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CANADIAN SOLAR INC
NASDAQ:CSIQ (7/25/2024, 7:00:00 PM)
After market: 16.28 +0.08 (+0.49%)16.2
+0.34 (+2.14%)
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 Cap1.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.63 | ||
| Fwd PE | 3.21 | ||
| 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)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 14.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.47% | ||
| PM (TTM) | 4.48% | ||
| GM | 17.95% | ||
| 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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.91 | ||
| 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)-35.86%
EPS 3Y16.72%
EPS 5Y
EPS Q2Q%
EPS Next Y25.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.94%
Revenue growth 3Y29.86%
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