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

Fundamentals

Proven track record with adequate balance sheet.


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

-13.6%

CSIQ

1.0%

US Semiconductor

0.4%

US Market


1 Year Return

6.9%

CSIQ

35.1%

US Semiconductor

13.1%

US Market

Return vs Industry: CSIQ underperformed the US Semiconductor industry which returned 35.1% over the past year.

Return vs Market: CSIQ underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

CSIQIndustryMarket
7 Day-13.6%1.0%0.4%
30 Day-22.0%8.5%4.0%
90 Day-36.5%18.7%7.4%
1 Year6.9%6.9%37.7%35.1%15.6%13.1%
3 Year24.1%24.1%89.7%78.9%48.2%38.6%
5 Year-45.3%-45.3%143.8%119.2%62.6%44.6%

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?

4.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CSIQ ($14.66) is trading above our estimate of fair value ($9.07)

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 (4x) compared to the Semiconductor industry average (30.6x).

PE vs Market: CSIQ is good value based on its PE Ratio (4x) compared to the US market (18.2x).


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 (2.9x).


Next Steps

Future Growth

How is Canadian Solar forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-7.7%

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 (-7.7% per year).

Earnings vs Market: CSIQ's earnings are forecast to decline over the next 3 years (-7.7% per year).

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

Revenue vs Market: CSIQ's revenue (11.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CSIQ's revenue (11.5% 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 (10.1%).


Next Steps

Past Performance

How has Canadian Solar performed over the past 5 years?

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSIQ has high quality earnings.

Growing Profit Margin: CSIQ's current net profit margins (6.8%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: CSIQ's earnings have declined by -4.8% per year over the past 5 years.

Accelerating Growth: CSIQ's earnings growth over the past year (15.3%) exceeds its 5-year average (-4.8% per year).

Earnings vs Industry: CSIQ earnings growth over the past year (15.3%) exceeded the Semiconductor industry -10.4%.


Return on Equity

High ROE: CSIQ's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Canadian Solar's financial position?


Financial Position Analysis

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

Long Term Liabilities: CSIQ's short term assets (3.3B) exceeds its long term liabilities (862.4M)


Debt to Equity History and Analysis

Debt Level: CSIQ's debt to equity ratio (135%) is considered high

Reducing Debt: CSIQ's debt to equity ratio has reduced from 152.3% to 135% over the past 5 years.

Debt Coverage: CSIQ's debt is not well covered by operating cash flow (11.7%).

Interest Coverage: CSIQ's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet

Inventory Level: CSIQ has a high level of physical assets or inventory.

Debt Coverage by Assets: CSIQ's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Canadian Solar's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry

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

What is the CEO of Canadian Solar's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Shawn Qu (55yo)

0yrs

Tenure

0

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 ...


Management Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

Experienced Management: CSIQ's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

61yo

Average Age

Experienced Board: CSIQ's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$3,037,06007 Jun 19
Lion Point Capital
EntityCompany
Shares177,918
Max PriceUS$17.07
SellUS$12,480,00006 May 19
Lion Point Capital
EntityCompany
Shares600,000
Max PriceUS$20.80

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Guangchun Zhang (62yo)

    Senior VP & COO

    • Tenure: 6.9yrs
  • Shanglin Shi (65yo)

    Deputy General Manager of China Operation

    • Tenure: 13.3yrs
  • Jian Chien (58yo)

    Senior VP

    • Tenure: 4.8yrs
  • Shawn Qu (55yo)

    Chairman

    • Tenure: 0yrs
  • Yan Zhuang (55yo)

    Acting CEO

    • Tenure: 0.5yrs
  • Ed Job

    Managing Director of Investor Relations

    • Tenure: 8.6yrs
  • Guoqiang Xing (56yo)

    Senior VP & CTO

    • Tenure: 0yrs
  • Julie Ungerleider

    Managing Director of Global EPC - Global Energy Group

    • Tenure: 2.2yrs
  • Huifeng Chang (53yo)

    Senior VP & CFO

    • Tenure: 3.5yrs
  • Jianyi Zhang (61yo)

    Senior VP

    • Tenure: 3.8yrs

Board Members

  • Lars-Eric Johansson (72yo)

    Independent Director

    • Tenure: 13.3yrs
  • Harry Ruda (60yo)

    Independent Director

    • Tenure: 8.3yrs
  • Bob McDermott (78yo)

    Lead Independent Director

    • Tenure: 13.3yrs
  • Shawn Qu (55yo)

    Chairman

    • Tenure: 0yrs
  • Andrew Wong (62yo)

    Independent Director

    • Tenure: 5.3yrs
  • Arthur Wong (59yo)

    Independent Director

    • Tenure: 0.7yrs

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$871.345m
  • 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 23:51
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.