FIRST SOLAR INC (FSLR) Stock Fundamental Analysis
NASDAQ:FSLR - Nasdaq - US3364331070 - Common Stock - Currency: USD
Taking everything into account, FSLR scores 5 out of 10 in our fundamental rating. FSLR was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While FSLR has a great profitability rating, there are quite some 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.
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.
Of the past 5 years FSLR 4 years were profitable.
Each year in the past 5 years FSLR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.44%, FSLR belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.45%, FSLR is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
FSLR has a better Return On Invested Capital (11.13%) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.44% | ||
| ROE | 15.45% | ||
| ROIC | 11.13% |
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 (29.72%) is better than 90.91% of its industry peers.
FSLR's Profit Margin has improved in the last couple of years.
FSLR has a Operating Margin of 32.25%. This is amongst the best in the industry. FSLR outperforms 92.73% of its industry peers.
In the last couple of years the Operating Margin of FSLR has grown nicely.
With a Gross Margin value of 43.61%, FSLR perfoms like the industry average, outperforming 46.36% of the companies in the same industry.
FSLR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.25% | ||
| PM (TTM) | 29.72% | ||
| GM | 43.61% |
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
FSLR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FSLR has about the same amout of shares outstanding than it did 1 year ago.
FSLR has more shares outstanding than it did 5 years ago.
FSLR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.24 indicates that FSLR is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 4.24, FSLR perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
FSLR has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
FSLR has a Debt to Equity ratio of 0.04. This is comparable to the rest of the industry: FSLR outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.24 |
ROIC/WACC0.97
WACC11.53%
2.3 Liquidity
A Current Ratio of 1.93 indicates that FSLR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.93, FSLR is not doing good in the industry: 78.18% of the companies in the same industry are doing better.
A Quick Ratio of 1.39 indicates that FSLR should not have too much problems paying its short term obligations.
The Quick ratio of FSLR (1.39) is worse than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
FSLR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.88%, which is quite impressive.
FSLR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.90% yearly.
FSLR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.42%.
Measured over the past years, FSLR shows a small growth in Revenue. The Revenue has been growing by 6.55% on average per year.
EPS 1Y (TTM)27.88%
EPS 3Y56.95%
EPS 5Y52.9%
EPS Q2Q%-11.36%
Revenue 1Y (TTM)19.42%
Revenue growth 3Y12.89%
Revenue growth 5Y6.55%
Sales Q2Q%6.35%
3.2 Future
The Earnings Per Share is expected to grow by 21.87% on average over the next years. This is a very strong growth
FSLR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.30% yearly.
EPS Next Y22.82%
EPS Next 2Y35.98%
EPS Next 3Y29.19%
EPS Next 5Y21.87%
Revenue Next Year20.38%
Revenue Next 2Y20.88%
Revenue Next 3Y17.88%
Revenue Next 5Y11.3%
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
Based on the Price/Earnings ratio of 13.18, the valuation of FSLR can be described as correct.
Based on the Price/Earnings ratio, FSLR is valued cheaper than 93.64% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.52. FSLR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.99, the valuation of FSLR can be described as very cheap.
FSLR's Price/Forward Earnings ratio is rather cheap when compared to the industry. FSLR is cheaper than 100.00% of the companies in the same industry.
FSLR is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FSLR is valued cheaply inside the industry as 88.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.3 |
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 29.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)0.25
EPS Next 2Y35.98%
EPS Next 3Y29.19%
5. Dividend
5.1 Amount
FSLR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
160.84
-1.6 (-0.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97.29%
Inst Owner Change0.02%
Ins Owners5.37%
Ins Owner Change0.69%
Market Cap17.25B
Analysts81.78
Price Target204.1 (26.9%)
Short Float %10.39%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.63%
Min EPS beat(2)-23.86%
Max EPS beat(2)-23.4%
EPS beat(4)2
Avg EPS beat(4)-6.01%
Min EPS beat(4)-23.86%
Max EPS beat(4)18.48%
EPS beat(8)6
Avg EPS beat(8)8.47%
EPS beat(12)7
Avg EPS beat(12)-30.04%
EPS beat(16)10
Avg EPS beat(16)-20.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.34%
Max Revenue beat(2)1.21%
Revenue beat(4)2
Avg Revenue beat(4)-3.48%
Min Revenue beat(4)-19.01%
Max Revenue beat(4)5.22%
Revenue beat(8)4
Avg Revenue beat(8)-2.34%
Revenue beat(12)5
Avg Revenue beat(12)-5.12%
Revenue beat(16)5
Avg Revenue beat(16)-7.52%
PT rev (1m)0.89%
PT rev (3m)-17.26%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)-35.37%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-18.24%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-18.02%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-7.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 6.99 | ||
| P/S | 4.05 | ||
| P/FCF | N/A | ||
| P/OCF | 50.39 | ||
| P/B | 2.11 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 9.3 |
EPS(TTM)12.2
EY7.59%
EPS(NY)23.02
Fwd EY14.31%
FCF(TTM)-9.1
FCFYN/A
OCF(TTM)3.19
OCFY1.98%
SpS39.69
BVpS76.35
TBVpS75.58
PEG (NY)0.58
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.44% | ||
| ROE | 15.45% | ||
| ROCE | 14.09% | ||
| ROIC | 11.13% | ||
| ROICexc | 12.25% | ||
| ROICexgc | 12.36% | ||
| OM | 32.25% | ||
| PM (TTM) | 29.72% | ||
| GM | 43.61% | ||
| FCFM | N/A |
ROA(3y)6.05%
ROA(5y)6.01%
ROE(3y)9.29%
ROE(5y)8.59%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y23.05%
ROICexcg growth 5Y27.37%
ROICexc growth 3Y23.15%
ROICexc growth 5Y27.62%
OM growth 3Y30.14%
OM growth 5Y38.22%
PM growth 3Y24.2%
PM growth 5YN/A
GM growth 3Y20.94%
GM growth 5Y19.76%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.2 | ||
| Cap/Depr | 287.4% | ||
| Cap/Sales | 30.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 18.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 4.24 |
F-Score6
WACC11.53%
ROIC/WACC0.97
Cap/Depr(3y)381.88%
Cap/Depr(5y)306.48%
Cap/Sales(3y)37.52%
Cap/Sales(5y)29.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.88%
EPS 3Y56.95%
EPS 5Y52.9%
EPS Q2Q%-11.36%
EPS Next Y22.82%
EPS Next 2Y35.98%
EPS Next 3Y29.19%
EPS Next 5Y21.87%
Revenue 1Y (TTM)19.42%
Revenue growth 3Y12.89%
Revenue growth 5Y6.55%
Sales Q2Q%6.35%
Revenue Next Year20.38%
Revenue Next 2Y20.88%
Revenue Next 3Y17.88%
Revenue Next 5Y11.3%
EBIT growth 1Y23.68%
EBIT growth 3Y46.92%
EBIT growth 5Y47.27%
EBIT Next Year47.81%
EBIT Next 3Y36.37%
EBIT Next 5Y24.25%
FCF growth 1Y-586.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-64.99%
OCF growth 3Y72.43%
OCF growth 5Y47.54%