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Canadian Solar Inc (CSIQ)
NASDAQ:CSIQ
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Canadian Solar
(NASDAQ:CSIQ)
60Neutral
Positive Factors
Earnings
The company's energy storage business is a growth engine that helps offset weaker solar margins and has taken market share due to strong solar customer relationships.
Investment
The Recurrent business benefits from a $500 million equity investment by BlackRock, supporting around 3 GW of solar development.
Negative Factors
Financial Performance
Fourth quarter net sales missed both internal estimates and consensus, coming in at the bottom of guidance.
Market Competition
Profitability is expected to deteriorate due to increasing competition and challenges in sourcing cells from countries not subject to tariffs.
Tariffs
The North American business of Canadian Solar faces multiple tariff and duty related headwinds, impacting a significant portion of its revenue.
Canadian Solar (CSIQ) vs. S&P 500 (SPY)
Market Cap
$715.15M
Dividend YieldN/A
Average Volume (3M)2.58M
Price to Earnings (P/E)20.1
Beta (1Y)1.65
Revenue Growth-19.06%
EPS Growth-104.91%
CountryUS
Employees17,113
SectorTechnology
Sector Strength77
IndustrySolar
Share Statistics
EPS (TTM)-0.51
Shares Outstanding66,961,790
10 Day Avg. Volume1,746,390
30 Day Avg. Volume2,577,768
Financial Highlights & Ratios
PEG Ratio-4.77
Price to Book (P/B)0.15
Price to Sales (P/S)0.00
P/FCF Ratio-0.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.46Price Target Upside16.67% Upside
Rating ConsensusHold
Number of Analyst Covering8
Canadian Solar Business Overview & Revenue Model
Company DescriptionCanadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power and battery storage products in Asia, the Americas, Europe, and internationally. The company operates through two segments, Canadian Solar Inc. (CSI) Solar and Global Energy. The CSI Solar segment offers standard solar modules and battery storage solutions, as well as solar system kits that are a ready-to-install packages comprising inverters, racking systems, and other accessories; and engineering, procurement, and construction (EPC) services. The Global Energy segment engages in the development, construction, maintenance, and sale of solar and battery storage projects; operation of solar power plants; and sale of electricity. This segment also provides operation and maintenance (O&M) services, including monitoring, inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar projects, as well as asset management services. As of January 31, 2021, this segment had a fleet of solar power plants in operation with an aggregate capacity of approximately 445 MWp. The company serves distributors, system integrators, project developers, and installers/EPC companies. It sells its products primarily under its Canadian Solar brand name; and on an OEM basis. The company was incorporated in 2001 and is headquartered in Guelph, Canada.
How the Company Makes MoneyCanadian Solar makes money primarily through its two main business segments: Module and System Solutions (MSS) and Energy. The MSS segment generates revenue by manufacturing and selling solar modules and related products to distributors, system integrators, and project developers. This involves both direct sales and long-term supply agreements. The Energy segment involves the development, construction, operation, and sale of solar power projects. Revenue is derived from the sale of these projects, as well as from power purchase agreements (PPAs) where Canadian Solar sells electricity to utilities and other energy providers. Additionally, the company benefits from strategic partnerships and joint ventures with other energy companies and financial institutions, which help facilitate project financing and development.
Canadian Solar Financial Statement Overview
Summary
Canadian Solar faces profitability and cash flow challenges, with a declining gross profit margin and a sharp decrease in net profit margin. Revenue and EBIT margin declines indicate operational pressures. The balance sheet shows significant leverage, with a high debt-to-equity ratio and low return on equity, despite a substantial cash reserve. Cash flow management issues are evident, with negative free cash flow growth and operational cash flow challenges.Income Statement
The income statement shows a moderate performance with a declining gross profit margin from 16.81% in 2023 to 16.12% TTM (Trailing-Twelve-Months). The net profit margin saw a sharp decline to 0.01% TTM from 3.60% in 2023, indicating profitability challenges. Revenue growth is negative, with a decrease of 18.89% from 2023 to TTM. The EBIT margin also decreased to 1.02% TTM, reflecting pressure on operational efficiency. However, EBITDA margin remains relatively stable at 6.76% TTM.70
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.08 TTM, suggesting significant leverage. Return on equity decreased to 0.03% TTM, indicating challenges in generating returns on equity. The equity ratio is relatively low at 20.85% TTM, showing moderate financial stability. Despite the high leverage, the company has a substantial cash reserve.60
Neutral
Cash Flow
The cash flow statement indicates deterioration, with free cash flow declining significantly. Free cash flow growth rate is negative at -205.14% TTM, and operating cash flow to net income ratio is negative, reflecting operational cash flow challenges. The free cash flow to net income ratio is also negative, highlighting cash flow management issues.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.17B | 7.61B | 7.47B | 5.28B | 3.48B | 3.20B | Gross Profit |
| 995.69M | 1.28B | 1.26B | 909.31M | 689.91M | 718.50M | EBIT |
| 63.13M | 453.32M | 356.06M | -81.34M | 20.62M | 111.19M | EBITDA |
| 417.19M | 829.66M | 675.15M | 494.31M | 423.51M | 439.62M | Net Income Common Stockholders |
| 762.00K | 274.19M | 239.97M | 95.25M | 146.70M | 171.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 290.83M | 1.96B | 981.43M | 869.83M | 1.18B | 668.77M | Total Assets |
| 1.42B | 11.90B | 9.04B | 7.39B | 6.54B | 5.47B | Total Debt |
| 620.85M | 4.48B | 4.01B | 3.26B | 2.81B | 2.42B | Net Debt |
| 332.20M | 2.54B | 3.03B | 2.39B | 1.63B | 1.75B | Total Liabilities |
| 888.38M | 8.19B | 6.73B | 5.26B | 4.64B | 4.04B | Stockholders Equity |
| 534.33M | 2.56B | 1.94B | 1.80B | 1.57B | 1.39B |
| Cash Flow | Free Cash Flow | ||||
| -2.57B | -840.85M | 288.63M | -837.75M | -455.48M | 308.93M | Operating Cash Flow |
| -760.71M | 684.62M | 916.63M | -408.25M | -120.54M | 600.11M | Investing Cash Flow |
| -1.82B | -1.67B | -630.49M | -429.57M | -319.66M | -294.10M | Financing Cash Flow |
| 2.41B | 2.05B | 428.64M | 614.07M | 823.50M | -34.61M |
Canadian Solar Technical Analysis
Positive
10.68
Price Trends
9.11
Positive
10.01
Positive
11.70
Negative
Market Momentum
0.49
Negative
60.40
Neutral
71.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSIQ, the sentiment is Positive. The current price of 10.68 is above the 20-day moving average (MA) of 9.64, above the 50-day MA of 9.11, and below the 200-day MA of 11.70, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 60.40 is Neutral, neither overbought nor oversold. The STOCH value of 71.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSIQ.
Canadian Solar Risk Analysis
Canadian Solar disclosed 63 risk factors in its most recent earnings report. Canadian Solar reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Canadian Solar Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $811.63M | 42.96 | 3.43% | ― | -18.10% | -36.91% | |
66 Neutral | $6.61B | 46.89 | 17.13% | ― | -22.15% | -45.22% | |
63 Neutral | $1.17B | ― | -49.11% | ― | -21.31% | -593.57% | |
63 Neutral | $967.88M | 118.10 | -9.49% | 15.33% | -30.26% | -156.69% | |
60 Neutral | $11.58B | 10.33 | -7.23% | 2.94% | 7.47% | -10.84% | |
60 Neutral | $715.15M | 20.05 | -0.39% | ― | -19.06% | -104.91% | |
54 Neutral | $1.30B | ― | -121.50% | ― | -57.89% | -559.87% |
* Technology Sector Average
Performance Comparison
CSIQ
Canadian Solar
10.68
-5.03
-32.02%
ENPH
Enphase Energy
48.78
-64.67
-57.00%
JKS
JinkoSolar
18.96
-3.26
-14.67%
SEDG
SolarEdge Technologies
20.76
-27.95
-57.38%
ARRY
Array Technologies
7.26
-3.48
-32.40%
SHLS
Shoals Technologies Group
4.72
-1.88
-28.48%
Canadian Solar Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 5.64%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. On one hand, Canadian Solar reported higher module shipments and launched innovative products, reflecting strong operational performance and growth potential. However, the company also faced profitability challenges, market overcapacity, and uncertainties due to US-China tariffs, leading to a net loss and reduced guidance for 2025.Q1-2025 Updates
Positive Updates
Module Shipment Exceeds Guidance
Canadian Solar achieved module shipments of 6.9 gigawatts, slightly above guidance, indicating strong demand and operational efficiency.
New Product Launches
Canadian Solar announced several new products, including Anti-Hail technology and N-type High Power TOPCon Gen 2 modules, showcasing innovation in solar and energy storage.
Strong Energy Storage Pipeline
The company reported a record pipeline of 91 gigawatt hours in energy storage, highlighting significant growth potential in this segment.
Improved Shipping Costs
Average selling prices improved with a higher share of shipments to North America, and shipping costs declined sequentially due to softening global shipping rates.
Negative Updates
Net Loss and Profitability Challenges
Canadian Solar reported a net loss to shareholders of $34 million, or $0.69 per diluted share, due to lower contributions from storage, tariffs, and intra-company eliminations.
Structural Overcapacity and Pricing Pressure
The solar supply chain's structural overcapacity has prolonged the market downturn, putting pressure on module pricing in most global markets.
US-China Tariff Impact
Ongoing US-China tariff negotiations create uncertainty, with the US market accounting for about one-third of expected energy storage business this year.
Reduced Guidance for 2025
Canadian Solar lowered its full-year 2025 guidance for module and storage volumes due to strategic reductions in less profitable markets and US trade negotiations.
Company Guidance
In the first quarter of 2025, Canadian Solar reported a solid performance with module shipments reaching 6.9 gigawatts, exceeding guidance slightly, and revenue totaling $1.2 billion, at the high end of their forecast. The gross margin was 11.7%, modestly surpassing expectations. Despite these achievements, the company faced challenges, including lower contributions from storage, duties, tariffs, and ongoing transformation, resulting in a net loss to shareholders of $34 million or $0.69 per diluted share. Looking forward, they anticipate module shipments for the second quarter to range between 7.5 and 8 gigawatts and energy storage solutions of 2.4 to 2.6 gigawatt-hours, with a projected revenue of $1.9 to $2.1 billion, and gross margin expected between 23% and 25%. Full-year 2025 guidance was updated, with module volume now expected between 25 and 30 gigawatts and energy storage shipments between 7 and 9 gigawatt-hours, leading to an anticipated full-year revenue of $6.1 to $7.1 billion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.