First Solar (FSLR) AI Stock Analysis

• Market Cap: $13.59B
• Dividend Yield: N/A
• Average Volume (3M): 4.14M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.65
• Revenue Growth: 19.42%
• EPS Growth: 23.19%
• Country: US
• Employees: 8,100
• Sector: Technology
• Sector Strength: 65
• Industry: Solar
• EPS (TTM): 1.95
• Shares Outstanding: 107,244,480
• 10 Day Avg. Volume: 5,148,516
• 30 Day Avg. Volume: 4,137,112
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.17
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $198.17
• Price Target Upside: 40.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 27

First Solar's robust financial performance and attractive valuation are significant strengths, while recent earnings call challenges, including tariff impacts and policy uncertainties, present notable risks. Technical indicators suggest mixed momentum, with potential resistance ahead.

Positive Factors

IRA Impact

FSLR is a winner under the IRA in terms of increasing earnings power and increasing visibility as developers race to secure domestic solar modules with FSLR the only significant U.S. producer today.

Stock Upgrade

Analyst upgrades the shares to BUY as the company is expected to materially outperform its peers.

Tax Credits

The 45x production-tax-credits will remain largely intact, making the risk/reward favorable at the current price.

Negative Factors

Guidance Reduction

FSLR's stock came under pressure following reduced 2025E guidance provided earlier, which was worse than expected.

Policy Uncertainty

IRA policy uncertainty continues to create challenges with management monitoring FEOC, 45X, and ITC/PTC provisions.

Tariff Challenges

The company is facing macroeconomic and tariff challenges, leading to a downgrade to a Hold rating.

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 makes money primarily through the sale of its advanced thin-film photovoltaic solar modules. These modules are sold to utility companies, independent power producers, and commercial and industrial companies engaged in large-scale solar projects. The company's revenue model is driven by the production and sale of these solar panels, which are known for their durability and high energy yield. Additionally, First Solar generates revenue by providing operations and maintenance (O&M) services for solar power plants, ensuring their efficient and reliable operation. Key revenue streams include the direct sale of solar modules, long-term service agreements, and partnerships with major energy companies to develop and manage solar energy projects. The company's strategic focus on innovation, coupled with its global manufacturing capabilities, enables it to maintain competitive pricing and capture significant market share in the solar energy industry.

First Solar Financial Statement Overview

Summary

First Solar demonstrates robust financial health with strong profitability and a stable balance sheet. The company effectively manages costs, resulting in high margins and solid revenue growth. While cash flow challenges persist due to capital investments, the balance sheet strength mitigates potential risks. Overall, First Solar is well-positioned in the solar industry with a strong financial foundation.

Income Statement

First Solar exhibits strong profitability with a gross profit margin of 43.5% and a net profit margin of 29.7% in the TTM (Trailing-Twelve-Months). The company has shown robust revenue growth of 28.3% from 2023 to 2024 and maintains a healthy EBIT margin of 32.9%. Stability is evident in the consistent EBITDA margin of 37.5%. These metrics indicate effective cost management and a solid profit trajectory.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.06, showcasing low leverage and prudent financial management. Return on equity is impressive at 15.4%, indicating effective use of equity capital. The equity ratio stands at 67.6%, highlighting a strong capital structure with substantial shareholder equity.

Cash Flow

Cash flow analysis shows a challenging environment with negative free cash flow growth, but the operating cash flow to net income ratio is 0.27, indicating some efficiency in cash generation. Free cash flow to net income ratio is negative, reflecting high capital expenditures. While operating activities are positive, the company faces cash flow constraints due to significant investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.21B	3.32B	2.62B	2.92B	2.71B
	Gross Profit
1.86B	1.30B	69.86M	729.95M	680.67M
	EBIT
1.39B	857.27M	-216.27M	186.06M	95.19M
	EBITDA
1.87B	1.21B	46.78M	699.37M	573.81M
	Net Income Common Stockholders
1.29B	830.78M	-44.17M	468.69M	398.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.79B	2.10B	2.58B	1.83B	1.75B
	Total Assets
12.12B	10.37B	8.25B	7.41B	7.11B
	Total Debt
718.80M	624.39M	193.54M	239.90M	279.23M
	Net Debt
-902.57M	-1.32B	-1.29B	-1.21B	-947.77M
	Total Liabilities
4.15B	3.68B	2.42B	1.45B	1.59B
	Stockholders Equity
7.98B	6.69B	5.84B	5.96B	5.52B
Cash Flow		Free Cash Flow
-308.08M	-784.51M	-30.24M	-302.73M	-379.51M
	Operating Cash Flow
1.22B	602.26M	873.37M	237.56M	37.12M
	Investing Cash Flow
-1.56B	-472.79M	-1.19B	-99.04M	-131.23M
	Financing Cash Flow
24.85M	336.85M	309.39M	40.55M	-82.59M

First Solar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 140.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 140.68 is above the 20-day moving average (MA) of 131.13, above the 50-day MA of 130.67, and below the 200-day MA of 183.06, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 57.65 is Neutral, neither overbought nor oversold. The STOCH value of 61.99 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	76 Outperform	$6.25B	11.30	39.64%	―	21.46%	123.22%
FSLR	73 Outperform	$13.59B	10.78	16.77%	―	19.42%	23.19%
ENPH	66 Neutral	$5.76B	40.81	17.13%	―	-22.15%	-45.22%
Sector *	60 Neutral	$10.96B	10.28	-6.73%	2.97%	7.74%	-12.45%
ARRY	59 Neutral	$785.44M	―	-49.11%	―	-21.31%	-593.57%
SEDG	54 Neutral	$848.45M	―	-121.50%	―	-57.89%	-559.87%
CSIQ	51 Neutral	$592.93M	16.56	1.34%	―	-21.28%	-87.20%

First Solar Corporate Events

First Solar Board Member Molly E. Joseph to Depart

On March 12, 2025, Molly E. Joseph informed First Solar, Inc. that she will not seek re-election to the Board of Directors at the 2025 Annual Meeting of Stockholders. Her decision is not due to any disagreement with the company, and she will continue her role until the meeting. The company appreciates her service since 2017.