The average target price of FSLR is 194 and suggests 9% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 304.0. This translates into 70% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 100.0. This is equivalent to 44% downside potential in the worst case. 

First Solar, Inc. provides photovoltaic (PV) solar energy solutions in the United State, Japan, France, Canada, India, Australia, and internationally. The company designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

First Solar, Inc.

Technology

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

FSLR reported revenue of USD 4 257mn in the last 12 months, up 1% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 2% from FY24 to USD 11.81. Market expects EPS to reach USD 13.12 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 4ppts over six months and grown 18ppts faster in the past month. At the same time, the stock's performance relative to its the peers from the same country and sector is different. The stock outperformed these peers by 3ppts over the past six months and grew 18ppts faster in the past month. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported good EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 40.6% in the last 12 months, up from 36.1% in FY23. 

Historically, FSLR has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 29.7%, a growth from 25.0% in FY23. 

First Solar, Inc. reported a return on equity (RoE) of 17.0% in the last 12 months, up from 13.3% in FY23. The market consensus projects an RoE of 21.3% in FY24, again ahead of its peers. 

Another important profitability metric, return on assets (RoA), amounted to 11.3% in the last 12 months, an increase from 8.9% in FY23. The market analysts predict that RoA will be 13.8% in FY24, again stronger than its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 13.5%, above the peers. The consensus estimate for FY24 for RoCE is 16.8%, again ahead of the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.1 in the past several years. This ratio implies a average shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

FSLR boasts high trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually quite stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. 

No other major risks have been identified.

The risk of default is minimal. We note robust profitability, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors and we point to excessive margin volatility, poor working capital management.

In highly turbulent market conditions, FSLR is moderately volatile. In other words, the stock will fall more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be moderate. 

In normal market circumstances, FSLR is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from large to substantial. We would also like to highlight the substantial intraday volatility of the instrument. 

Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is 'cheap' on P/E, neutral on EV/EBITD. 

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First Solar, Inc.

$ 175.85

4

First Solar, Inc.

$ 175.85

4

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 175.85

About

About

First Solar, Inc.

$ 175.85

4

First Solar, Inc.

$ 175.85

4

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 175.85

About

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