CSIQ

Canadian SolarNasdaqGS:CSIQ Stock Report

Market Cap

US$2.2b

7D

1.7%

1Y

26.3%

Updated

18 Sep, 2021

Data

Company Financials +
CSIQ fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health3/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Canadian Solar
Historical stock prices
Current Share PriceUS$36.97
52 Week HighUS$28.33
52 Week LowUS$67.39
Beta1.39
1 Month Change15.57%
3 Month Change-6.14%
1 Year Change26.26%
3 Year Change151.16%
5 Year Change185.26%
Change since IPO136.53%

Recent News & Updates

Sep 14

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.

Aug 31
Is It Time To Consider Buying Canadian Solar Inc. (NASDAQ:CSIQ)?

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

CSIQUS SemiconductorUS Market
7D1.7%-0.04%-0.6%
1Y26.3%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

Is CSIQ's price volatile compared to industry and market?
CSIQ volatility
CSIQ Beta1.39
Industry Beta1.23
Market Beta1

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

FoundedEmployeesCEOWebsite
200112,774Shawn Quhttps://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

How do Canadian Solar's earnings and revenue compare to its market cap?
CSIQ fundamental statistics
Market CapUS$2.22b
Earnings (TTM)US$49.51m
Revenue (TTM)US$4.47b

44.8x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSIQ income statement (TTM)
RevenueUS$4.47b
Cost of RevenueUS$3.78b
Gross ProfitUS$698.89m
ExpensesUS$649.39m
EarningsUS$49.51m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.83
Gross Margin15.62%
Net Profit Margin1.11%
Debt/Equity Ratio107.6%

How did CSIQ perform over the long term?

See historical performance and comparison

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:07
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.