NasdaqGS:FSLR

Stock Analysis Report

Executive Summary

First Solar, Inc. provides photovoltaic (PV) solar energy solutions in the United States and internationally.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

FSLR

3.8%

US Semiconductor

2.3%

US Market


1 Year Return

18.3%

FSLR

18.2%

US Semiconductor

5.6%

US Market

Return vs Industry: FSLR matched the US Semiconductor industry which returned 18.2% over the past year.

Return vs Market: FSLR exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

FSLRIndustryMarket
7 Day-2.4%3.8%2.3%
30 Day-16.1%-0.03%-1.0%
90 Day-17.0%4.4%-0.7%
1 Year18.3%18.3%20.5%18.2%7.9%5.6%
3 Year31.3%31.3%82.3%71.6%45.6%36.3%
5 Year-1.8%-1.8%140.3%115.5%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is First 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

Undervalued: FSLR ($55.25) is trading below our estimate of fair value ($127.6)

Significantly Undervalued: FSLR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FSLR is poor value based on its PE Ratio (244.6x) compared to the Semiconductor industry average (27.7x).

PE vs Market: FSLR is poor value based on its PE Ratio (244.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: FSLR is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: FSLR is good value based on its PB Ratio (1.1x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

How is First Solar forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

41.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSLR's forecast earnings growth (41.5% per year) is above the savings rate (2.7%).

Earnings vs Market: FSLR's earnings (41.5% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FSLR's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: FSLR's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FSLR's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has First Solar performed over the past 5 years?

-40.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FSLR's earnings have declined by -40.5% per year over the past 5 years.

Accelerating Growth: FSLR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FSLR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (-6.2%).


Return on Equity

High ROE: FSLR's Return on Equity (0.5%) is considered low.


Return on Assets

ROA vs Industry: FSLR's Return on Assets is below or equal to the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: FSLR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is First Solar's financial position?


Financial Position Analysis

Short Term Liabilities: FSLR's short term assets ($3.4B) exceeds its short term liabilities ($843.3M)

Long Term Liabilities: FSLR's short term assets (3.4B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: FSLR's debt to equity ratio (9.6%) is considered satisfactory

Reducing Debt: FSLR's debt to equity ratio has increased from 4.2% to 9.6% over the past 5 years.

Debt Coverage: FSLR's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if FSLR's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: FSLR's debt is covered by short term assets (assets are 6.938850x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate FSLR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Stable Dividend: Insufficient data to determine if FSLR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FSLR'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 FSLR'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 First Solar's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Mark Widmar (53yo)

3.3yrs

Tenure

US$7,032,617

Compensation

Mr. Mark R. Widmar has been the Chief Executive Officer and Director of First Solar, Inc. since July 1, 2016. Mr. Widmar served as the Chief Financial Officer of 8Point3 General Partner, LLC, a General Par ...


CEO Compensation Analysis

Compensation vs. Market: Mark's total compensation ($USD7.03M) is about average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.7yrs

Average Tenure

54yo

Average Age

Experienced Management: FSLR's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

8.4yrs

Average Tenure

62yo

Average Age

Experienced Board: FSLR's board of directors are considered experienced (8.4 years average tenure).


Insider Trading

Insider Buying: FSLR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$112,59007 Aug 19
R. Kennedy
EntityIndividual
Shares1,800
Max PriceUS$62.55

Ownership Breakdown


Management Team

  • Raffi Garabedian (52yo)

    Chief Technology Officer

    • Tenure: 7.4yrs
    • Compensation: US$3.26m
  • Georges Antoun (56yo)

    Chief Commercial Officer

    • Tenure: 3.3yrs
    • Compensation: US$3.35m
  • Paul Kaleta (63yo)

    Executive VP

    • Tenure: 5.6yrs
    • Compensation: US$4.92m
  • Mark Widmar (53yo)

    CEO & Director

    • Tenure: 3.3yrs
    • Compensation: US$7.03m
  • Philip deJong (59yo)

    Chief Operating Officer

    • Tenure: 4.3yrs
    • Compensation: US$3.26m
  • Mike Koralewski

    Senior Vice President of Global Manufacturing

    • Tenure: 4.1yrs
  • Alex Bradley (38yo)

    Chief Financial Officer

    • Tenure: 3.3yrs
    • Compensation: US$2.45m
  • Chris Bueter (55yo)

    Executive Vice President of Human Resources

    • Tenure: 3.7yrs
  • Steve Haymore

    Director of Investor Relations

    • Tenure: 0yrs
  • Byron Jeffers (35yo)

    Chief Accounting Officer

    • Tenure: 0.4yrs

Board Members

  • Mike Sweeney (61yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$285.14k
  • Paul Stebbins (62yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$272.38k
  • Bill Post (68yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$260.14k
  • Craig Kennedy (67yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$260.14k
  • Mike Ahearn (62yo)

    Chairman of the Board

    • Tenure: 16.8yrs
    • Compensation: US$385.09k
  • Mark Widmar (53yo)

    CEO & Director

    • Tenure: 3.3yrs
    • Compensation: US$7.03m
  • Chip Hambro (56yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$272.38k
  • Sharon Allen (67yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$295.14k
  • Richard Chapman (65yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$260.14k
  • Molly Joseph (45yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$260.14k

Company Information

First Solar, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Solar, Inc.
  • Ticker: FSLR
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$5.823b
  • Shares outstanding: 105.39m
  • Website: https://www.firstsolar.com

Number of Employees


Location

  • First Solar, Inc.
  • 350 West Washington Street
  • Suite 600
  • Tempe
  • Arizona
  • 85281
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSLRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2006
F3ADB (Deutsche Boerse AG)YesCommon StockDEEURNov 2006
F3AXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 2006
FSLR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2006
FSLRSWX (SIX Swiss Exchange)YesCommon StockCHCHFNov 2006
0R06LSE (London Stock Exchange)YesCommon StockGBUSDNov 2006
FSLRWBAG (Wiener Boerse AG)YesCommon StockATEURNov 2006
FSLR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1/2 COM SHS USD0.001BRBRLAug 2016

Biography

First Solar, Inc. provides photovoltaic (PV) solar energy solutions in the United States and internationally. It operates in two segments, Modules and Systems. The Components segment designs, manufactures, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:54
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.