CANADIAN SOLAR INC (CSIQ)

CA1366351098 - Common Stock

14.96  +0.09 (+0.61%)

After market: 14.85 -0.11 (-0.74%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to CSIQ. CSIQ was compared to 107 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 may be a bit undervalued, certainly considering the very reasonable score on growth



4

1. Profitability

1.1 Basic Checks

In the past year CSIQ was profitable.
In the past 5 years CSIQ has always been profitable.
In multiple years CSIQ reported negative operating cash flow during the last 5 years.

1.2 Ratios

CSIQ has a Return On Assets (3.10%) which is comparable to the rest of the industry.
The Return On Equity of CSIQ (14.17%) is better than 72.64% of its industry peers.
With a decent Return On Invested Capital value of 6.97%, CSIQ is doing good in the industry, outperforming 65.09% 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 11.07%.
The 3 year average ROIC (4.07%) for CSIQ is below the current ROIC(6.97%), indicating increased profibility in the last year.
Industry RankSector 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

CSIQ has a Profit Margin (4.48%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CSIQ has declined.
CSIQ has a Operating Margin of 7.47%. This is comparable to the rest of the industry: CSIQ outperforms 56.60% of its industry peers.
In the last couple of years the Operating Margin of CSIQ has declined.
With a Gross Margin value of 17.95%, CSIQ is not doing good in the industry: 83.02% of the companies in the same industry are doing better.
CSIQ's Gross Margin has declined in the last couple of years.
Industry RankSector 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%

1

2. Health

2.1 Basic Checks

CSIQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CSIQ has been increased compared to 1 year ago.
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 1.21. This is a bad value and indicates that CSIQ is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.21, CSIQ is not doing good in the industry: 72.64% of the companies in the same industry are doing better.
CSIQ has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
CSIQ has a Debt to Equity ratio of 1.09. This is amonst the worse of the industry: CSIQ underperforms 82.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF N/A
Altman-Z 1.21
ROIC/WACC1.13
WACC6.18%

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.
CSIQ has a Current ratio of 1.16. This is amonst the worse of the industry: CSIQ underperforms 88.68% of its industry peers.
A Quick Ratio of 0.91 indicates that CSIQ may have some problems paying its short term obligations.
CSIQ's Quick ratio of 0.91 is on the low side compared to the rest of the industry. CSIQ is outperformed by 83.96% of its industry peers.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 0.91

6

3. Growth

3.1 Past

CSIQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.40%, which is quite impressive.
The Revenue has grown by 12.21% in the past year. This is quite good.
The Revenue has been growing by 15.25% on average over the past years. This is quite good.
EPS 1Y (TTM)100.4%
EPS 3Y16.72%
EPS 5Y0%
EPS growth Q2Q-71.43%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y29.86%
Revenue growth 5Y15.25%
Revenue growth Q2Q-4.46%

3.2 Future

Based on estimates for the next years, CSIQ will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.94% on average per year.
Based on estimates for the next years, CSIQ will show a quite strong growth in Revenue. The Revenue will grow by 9.64% on average per year.
EPS Next Y25.48%
EPS Next 2Y14.12%
EPS Next 3Y31.25%
EPS Next 5Y19.94%
Revenue Next Year10.93%
Revenue Next 2Y1.16%
Revenue Next 3Y10.82%
Revenue Next 5Y9.64%

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.

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 2.99, the valuation of CSIQ can be described as very cheap.
98.11% of the companies in the same industry are more expensive than CSIQ, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CSIQ to the average of the S&P500 Index (25.25), we can say CSIQ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.07, the valuation of CSIQ can be described as very cheap.
Based on the Price/Forward Earnings ratio, CSIQ is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
CSIQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.67.
Industry RankSector Rank
PE 2.99
Fwd PE 3.07

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

CSIQ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CSIQ's earnings are expected to grow with 31.25% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y14.12%
EPS Next 3Y31.25%

0

5. Dividend

5.1 Amount

No dividends for CSIQ!.
Industry RankSector Rank
Dividend Yield N/A

CANADIAN SOLAR INC

NASDAQ:CSIQ (4/24/2024, 7:00:01 PM)

After market: 14.85 -0.11 (-0.74%)

14.96

+0.09 (+0.61%)

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 Cap967.16M
Analysts
Price Target
Dividend
Industry RankSector 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)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
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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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 2.99
Fwd PE 3.07
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)0.12
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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)
Growth
EPS 1Y (TTM)100.4%
EPS 3Y16.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.21%
Revenue growth 3Y29.86%
Revenue growth 5Y
Revenue growth 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