| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
CSIQ Overview
Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products.
Canadian Solar Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$36.97 |
| 52 Week High | US$28.33 |
| 52 Week Low | US$67.39 |
| Beta | 1.39 |
| 1 Month Change | 15.57% |
| 3 Month Change | -6.14% |
| 1 Year Change | 26.26% |
| 3 Year Change | 151.16% |
| 5 Year Change | 185.26% |
| Change since IPO | 136.53% |
Recent News & Updates
Canadian Solar: Overhyped And Too Expensive
CSIQ's EBIDTA margin of 8.41% (sector median: 14.70%) and net income margin of 1.11% (sector median: 6.22%) are far below the sector median. In the past three years, CSIQ’s long term debt ballooned from $393 M in 2018 to $754.7 M in 2021. I believe the current market is overvaluing CSIQ, and its current P/E ratio of 45.76 will converge to the sector median of 24.85. This represents a potential 30-40% downside in the next couple of years.
Is It Time To Consider Buying Canadian Solar Inc. (NASDAQ:CSIQ)?
Canadian Solar Inc. ( NASDAQ:CSIQ ), is not the largest company out there, but it saw a decent share price growth in...
Shareholder Returns
| CSIQ | US Semiconductor | US Market | |
|---|---|---|---|
| 7D | 1.7% | -0.04% | -0.6% |
| 1Y | 26.3% | 55.0% | 33.8% |
Return vs Industry: CSIQ underperformed the US Semiconductor industry which returned 55% over the past year.
Return vs Market: CSIQ underperformed the US Market which returned 33.8% over the past year.
Price Volatility
| CSIQ volatility | |
|---|---|
| CSIQ Beta | 1.39 |
| Industry Beta | 1.23 |
| Market Beta | 1 |
Stable Share Price: CSIQ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: CSIQ's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2001 | 12,774 | Shawn Qu | https://www.canadiansolar.com |
Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products. The company operates through two segments, Module and System Solutions (MSS), and Energy. The MSS segment engages in the design, development, manufacture, and sale of a range of solar power products, including standard solar modules, specialty solar products, and solar system kits that are a ready-to-install packages comprising inverters, racking systems, and other accessories.
Canadian Solar Fundamentals Summary
| CSIQ fundamental statistics | |
|---|---|
| Market Cap | US$2.22b |
| Earnings (TTM) | US$49.51m |
| Revenue (TTM) | US$4.47b |
44.8x
P/E Ratio0.5x
P/S RatioIs CSIQ overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CSIQ income statement (TTM) | |
|---|---|
| Revenue | US$4.47b |
| Cost of Revenue | US$3.78b |
| Gross Profit | US$698.89m |
| Expenses | US$649.39m |
| Earnings | US$49.51m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.83 |
| Gross Margin | 15.62% |
| Net Profit Margin | 1.11% |
| Debt/Equity Ratio | 107.6% |
How did CSIQ perform over the long term?
See historical performance and comparisonValuation
Is Canadian Solar undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CSIQ ($36.97) is trading below our estimate of fair value ($83.65)
Significantly Below Fair Value: CSIQ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CSIQ is poor value based on its PE Ratio (44.8x) compared to the US Semiconductor industry average (29.6x).
PE vs Market: CSIQ is poor value based on its PE Ratio (44.8x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: CSIQ is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: CSIQ is good value based on its PB Ratio (1.3x) compared to the US Semiconductor industry average (4.4x).
Future Growth
How is Canadian Solar forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
44.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CSIQ's forecast earnings growth (44.8% per year) is above the savings rate (2%).
Earnings vs Market: CSIQ's earnings (44.8% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CSIQ's revenue (12.6% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: CSIQ's revenue (12.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CSIQ's Return on Equity is forecast to be low in 3 years time (10.7%).
Past Performance
How has Canadian Solar performed over the past 5 years?
12.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CSIQ has high quality earnings.
Growing Profit Margin: CSIQ's current net profit margins (1.1%) are lower than last year (8%).
Past Earnings Growth Analysis
Earnings Trend: CSIQ's earnings have grown by 12.4% per year over the past 5 years.
Accelerating Growth: CSIQ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CSIQ had negative earnings growth (-80.8%) over the past year, making it difficult to compare to the Semiconductor industry average (70.6%).
Return on Equity
High ROE: CSIQ's Return on Equity (2.4%) is considered low.
Financial Health
How is Canadian Solar's financial position?
Financial Position Analysis
Short Term Liabilities: CSIQ's short term assets ($4.4B) exceed its short term liabilities ($3.9B).
Long Term Liabilities: CSIQ's short term assets ($4.4B) exceed its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: CSIQ's debt to equity ratio (107.6%) is considered high.
Reducing Debt: CSIQ's debt to equity ratio has reduced from 253.1% to 107.6% over the past 5 years.
Debt Coverage: CSIQ's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: CSIQ's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Balance Sheet
Dividend
What is Canadian Solar current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CSIQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CSIQ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CSIQ's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CSIQ's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CSIQ's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Shawn Qu (57 yo)
no data
Tenure
Dr. Xiaohua Qu, also known as Shawn, Founded Canadian Solar Inc. in October 2001 and serves as its Chief Executive Officer and served as its President since October 2001 until June 2020. Prior to joining C...
Leadership Team
Experienced Management: CSIQ's management team is seasoned and experienced (5.5 years average tenure).
Board Members
Experienced Board: CSIQ's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Canadian Solar Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Canadian Solar Inc.
- Ticker: CSIQ
- Exchange: NasdaqGS
- Founded: 2001
- Industry: Semiconductors
- Sector: Semiconductors
- Market Cap: US$2.218b
- Shares outstanding: 60.00m
- Website: https://www.canadiansolar.com
Number of Employees
Location
- Canadian Solar Inc.
- 545 Speedvale Avenue West
- Guelph
- Ontario
- N1K 1E6
- Canada
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:07 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.