First Solar (FSLR) AI Stock Analysis

• Market Cap: $25.89B
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.04
• Revenue Growth: 15.39%
• EPS Growth: 4.28%
• Country: US
• Employees: 8,100
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): 3.18
• Shares Outstanding: 107,247,650
• 10 Day Avg. Volume: 2,309,239
• 30 Day Avg. Volume: 2,236,495
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 4.07
• Enterprise Value/Gross Profit: 9.51
• Enterprise Value/Ebitda: 10.14
• 1Y Price Target: $259.45
• Price Target Upside: 7.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 79 Outperform
• Price Target: $229.00 ▼(-5.14% Downside)

First Solar's strong financial performance and positive technical indicators are the most significant factors driving the stock score. The company's robust profitability and balance sheet stability, combined with bullish technical momentum, position it well for future growth. However, challenges in cash flow management and external risks such as tariffs and contract terminations slightly temper the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth reflects First Solar's ability to expand its market presence and enhance product adoption, supporting long-term business stability.

Technological Advancements

Advancements in CuRe and perovskite technologies enhance First Solar's competitive edge, potentially leading to more efficient products and increased market share.

Strong U.S. Policy Environment

Favorable U.S. policies bolster First Solar's strategic positioning, providing a supportive environment for domestic growth and reducing international trade risks.

Negative Factors

Cash Flow Challenges

Significant capital expenditures leading to negative free cash flow may strain First Solar's cash generation ability, impacting future investments and financial flexibility.

Tariff and Trade Challenges

Ongoing tariff uncertainties could hinder First Solar's international sales, affecting revenue and profitability in key markets outside the U.S.

Contract Terminations

Contract terminations, particularly related to international products, may disrupt revenue streams and indicate potential issues with product acceptance or market conditions.

First Solar Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

First Solar generates revenue through several key streams. Primarily, the company earns money from the sale of its solar panels to utility companies and commercial customers, leveraging its advanced thin-film technology to offer competitive pricing. Additionally, First Solar engages in project development, where it builds and sells large-scale solar power plants, often entering long-term power purchase agreements (PPAs) that provide stable revenue over time. The company also generates income from the O&M services it provides to its solar projects, ensuring they operate efficiently post-installation. Significant partnerships with utilities and project developers further enhance its revenue potential, while government incentives and renewable energy credits play a crucial role in the financial viability of its projects.

First Solar Financial Statement Overview

Summary

First Solar demonstrates strong financial performance with robust profitability and balance sheet stability. The company shows consistent revenue growth and efficient operational management. However, challenges in cash flow due to significant capital expenditures and negative free cash flow indicate potential issues in cash generation and capital management.

Income Statement

First Solar exhibits strong profitability with a robust gross profit margin of 42.8% and net profit margin of 28.9% in TTM (Trailing-Twelve-Months). The revenue growth rate of 3.3% from 2024 to TTM indicates steady growth. The company also maintains solid EBIT and EBITDA margins of 31.4% and 37.3% respectively, showcasing efficient operational management.

Balance Sheet

The company has a healthy balance sheet with a low debt-to-equity ratio of 0.07 in TTM, indicating minimal leverage. The equity ratio remains strong at 66.5%, reflecting financial stability and resilience. However, the return on equity (ROE) is modest at 14.7%, suggesting potential for improved profitability.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow (FCF) of -$942.7 million in TTM, primarily due to significant capital expenditures. The operating cash flow to net income ratio stands at 0.24, suggesting room for improvement in cash conversion. Despite this, the company has managed to maintain a positive operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.34B	4.21B	3.32B	2.62B	2.92B	2.71B
Gross Profit	1.86B	1.86B	1.30B	69.86M	729.95M	680.67M
EBITDA	1.74B	1.87B	1.21B	46.78M	699.37M	573.81M
Net Income	1.26B	1.29B	830.78M	-44.17M	468.69M	398.36M
Balance Sheet
Total Assets	12.86B	12.12B	10.37B	8.25B	7.41B	7.11B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.79B	2.10B	2.58B	1.83B	1.75B
Total Debt	1.07B	718.80M	624.39M	234.13M	398.59M	482.27M
Total Liabilities	4.31B	4.15B	3.68B	2.42B	1.45B	1.59B
Stockholders Equity	8.55B	7.98B	6.69B	5.84B	5.96B	5.52B
Cash Flow
Free Cash Flow	-942.70M	-308.08M	-784.51M	-30.24M	-302.73M	-379.51M
Operating Cash Flow	298.86M	1.22B	602.26M	873.37M	237.56M	37.12M
Investing Cash Flow	-1.24B	-1.56B	-472.79M	-1.19B	-99.04M	-131.23M
Financing Cash Flow	399.50M	24.85M	336.85M	309.39M	40.55M	-82.59M

First Solar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 241.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSLR, the sentiment is Positive. The current price of 241.41 is above the 20-day moving average (MA) of 229.72, above the 50-day MA of 215.33, and above the 200-day MA of 170.98, indicating a bullish trend. The MACD of 5.23 indicates Positive momentum. The RSI at 62.47 is Neutral, neither overbought nor oversold. The STOCH value of 46.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSLR.

First Solar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXT	80 Outperform	$14.54B	25.51	35.44%	―	20.37%	3.46%
FSLR	79 Outperform	$25.89B	20.64	15.92%	―	15.39%	4.28%
ENPH	68 Neutral	$4.74B	28.54	19.79%	―	4.39%	37.70%
ARRY	64 Neutral	$1.37B	―	-44.13%	―	6.36%	-1683.09%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RUN	55 Neutral	$4.81B	―	-61.90%	―	3.27%	-81.63%
SEDG	50 Neutral	$2.36B	―	-131.02%	―	-36.07%	-233.14%

First Solar Corporate Events

First Solar Enters Major Tax Credit Agreements

On October 20, 2025, First Solar, Inc. entered into two Tax Credit transfer agreements with a leading digital payments company, involving the sale of $600 million in advanced manufacturing production tax credits generated in 2025. The agreements include a fixed transfer of $573 million payable in two installments by the end of 2025, and a variable transfer of up to $175 million, with payment due in early 2026. These agreements are expected to impact First Solar’s financial operations by providing significant liquidity and potentially enhancing its market positioning in the renewable energy sector.

The most recent analyst rating on (FSLR) stock is a Buy with a $278.00 price target. To see the full list of analyst forecasts on First Solar stock, see the FSLR Stock Forecast page.

First Solar Shines in Q2 2025 Earnings Call

First Solar’s recent earnings call paints a generally optimistic picture, underscored by robust module sales, earnings that surpassed expectations, and a supportive policy environment. Despite these positive signals, the company is navigating challenges such as international tariff impacts and contract terminations.

First Solar Reports Strong Q2 2025 Financial Performance

First Solar, Inc., a leading American photovoltaic solar technology and manufacturing company, specializes in advanced thin film PV technology, providing a high-performance alternative to conventional solar modules.

First Solar Enters Tax Credit Transfer Agreement

On July 28, 2025, First Solar, Inc. entered into a Tax Credit Transfer Agreement with a financial institution to sell up to $391 million in advanced manufacturing production tax credits. This transaction, involving the sale of module components produced in the U.S., is expected to impact the company’s financial operations positively, with payments structured in three installments throughout 2025.

The most recent analyst rating on (FSLR) stock is a Buy with a $252.00 price target. To see the full list of analyst forecasts on First Solar stock, see the FSLR Stock Forecast page.