NasdaqGS:CSIQ

Stock Analysis Report

Executive Summary

Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products primarily under the Canadian Solar brand name.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Canadian Solar's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CSIQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.8%

CSIQ

6.4%

US Semiconductor

2.4%

US Market


1 Year Return

-14.0%

CSIQ

7.3%

US Semiconductor

-10.0%

US Market

Return vs Industry: CSIQ underperformed the US Semiconductor industry which returned 7.3% over the past year.

Return vs Market: CSIQ underperformed the US Market which returned -10% over the past year.


Shareholder returns

CSIQIndustryMarket
7 Day9.8%6.4%2.4%
30 Day-6.7%-3.7%-11.0%
90 Day-29.3%-11.9%-19.4%
1 Year-14.0%-14.0%9.3%7.3%-8.1%-10.0%
3 Year26.5%26.5%61.0%52.0%17.3%9.6%
5 Year-54.5%-54.5%117.5%96.6%36.1%21.1%

Price Volatility Vs. Market

How volatile is Canadian Solar's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Canadian Solar undervalued compared to its fair value and its price relative to the market?

5.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CSIQ ($16.18) is trading above our estimate of fair value ($4.39)

Significantly Below Fair Value: CSIQ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CSIQ is good value based on its PE Ratio (5.6x) compared to the Semiconductor industry average (27.1x).

PE vs Market: CSIQ is good value based on its PE Ratio (5.6x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CSIQ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CSIQ is good value based on its PB Ratio (0.7x) compared to the US Semiconductor industry average (2.4x).


Next Steps

Future Growth

How is Canadian Solar forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSIQ's earnings are forecast to decline over the next 3 years (-8.2% per year).

Earnings vs Market: CSIQ's earnings are forecast to decline over the next 3 years (-8.2% per year).

High Growth Earnings: CSIQ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CSIQ's revenue (7.3% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: CSIQ's revenue (7.3% 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 (4.1%).


Next Steps

Past Performance

How has Canadian Solar performed over the past 5 years?

-3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSIQ has high quality earnings.

Growing Profit Margin: CSIQ's current net profit margins (5.4%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: CSIQ's earnings have declined by -3.5% 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 (-27.6%) over the past year, making it difficult to compare to the Semiconductor industry average (-30.5%).


Return on Equity

High ROE: CSIQ's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Canadian Solar's financial position?


Financial Position Analysis

Short Term Liabilities: CSIQ's short term assets ($3.3B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: CSIQ's short term assets ($3.3B) exceed its long term liabilities ($950.2M).


Debt to Equity History and Analysis

Debt Level: CSIQ's debt to equity ratio (129%) is considered high.

Reducing Debt: CSIQ's debt to equity ratio has reduced from 138.1% to 129% over the past 5 years.

Debt Coverage: CSIQ's debt is not well covered by operating cash flow (11.8%).

Interest Coverage: CSIQ's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Canadian Solar's 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 payouts.

High Dividend: Unable to evaluate CSIQ's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

4.0yrs

Average management tenure


CEO

Shawn Qu (55yo)

no data

Tenure

Dr. Xiaohua Qu, also known as Shawn, Founded Canadian Solar Inc. in October 2001 and has been its Chief Executive Officer and President since October 2001. Prior to joining Canadian Solar, Inc., Dr. Qu wo ...


Leadership Team

NamePositionTenureCompensationOwnership
Xiaohua Qu
Chairmanno datano data22.91% $220.4m
Yan Zhuang
Acting CEO0.92yrno datano data
Huifeng Chang
Senior VP & CFO3.92yrsno data0.026% $250.7k
Guangchun Zhang
Senior VP & COO7.33yrsno datano data
Guoqiang Xing
Senior VP & CTOno datano data0.021% $204.3k
Ed Job
Managing Director of Investor Relations9yrsno datano data
Jianyi Zhang
Senior VP4.17yrsno data0.033% $315.4k
Michael Carter
Corporate Development Managerno datano datano data
Julie Ungerleider
Managing Director of Global EPC - Global Energy Group2.58yrsno datano data
Mary Ma
Senior Supervisor of Investor Relationsno datano datano data

4.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CSIQ's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xiaohua Qu
Chairmanno datano data22.91% $220.4m
Harry Ruda
Independent Director8.75yrsno data0.011% $109.7k
Robert McDermott
Lead Independent Director13.67yrsno data0.020% $190.6k
Luen Cheung Wong
Independent Director5.67yrsno datano data
Lauren Templeton
Independent Director0.25yrno datano data
Lap Tat Wong
Independent Director1.08yrsno datano data

7.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: CSIQ's board of directors are considered experienced (7.2 years average tenure).


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 company bio, 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$961.689m
  • Shares outstanding: 59.44m
  • Website: https://www.canadiansolar.com

Number of Employees


Location

  • Canadian Solar Inc.
  • 545 Speedvale Avenue West
  • Guelph
  • Ontario
  • N1K 1E6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSIQNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDNov 2006
L5ADB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2006
CSIQSWX (SIX Swiss Exchange)YesCommon SharesCHCHFNov 2006

Biography

Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products primarily under the Canadian Solar brand name. The company operates through two segments, Module and System Solutions, and Energy. Its products include various solar modules that are used in residential, commercial, and industrial solar power generation systems. The company also develops, constructs, maintains, sells, and/or operates solar plants. In addition, it provides specialty solar products consisting Maple Solar System, a clean energy solution for families; solar inverters; energy storage systems; and solar pump systems, as well as solar system kits, which are a ready-to-install packages that consist inverters, racking systems, and other accessories. Further, the company develops, builds, and sells solar power projects; performs engineering, procurement, and construction (EPC) works for solar power projects; and offers operation and maintenance services that include inspection, repair, and replacement of plant equipment, site management, and administrative support services. Additionally, it generates and sells electricity with an aggregate capacity of approximately 986.3 megawatts. The company offers its products to distributors, system integrators, project developers, and installers/EPC companies. It has operations in North America, South America, Europe, Africa, the Middle East, Australia, and Asia. The company was founded in 2001 and is headquartered in Guelph, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 07:13
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.