First Solar shares are up 45% year to date, roughly double the broad market's gain. We view the shares as overvalued, with our $190 fair value estimate trailing the PitchBook consensus average of $288. In this note, we summarize the key focus areas for First Solar investors over the medium term.
First Solar’s balance sheet strength has enabled the company to persist through solar cycles when competitors have failed.
First Solar competes in the fiercely competitive and highly commoditized solar module industry.
|
Metric
|
FSLR
|
SEDG
|
SHLS
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.74 | 4.97 | 10.12 |
Price/Book Value | 3.41 | 0.54 | 1.59 |
Price/Sales | 6.60 | 0.76 | 1.92 |
Price/Cash Flow | 16.10 | — | 7.28 |
|
Metric
|
FSLR
|
SEDG
|
SHLS
|
|---|---|---|---|
Quick Ratio | 1.43 | 2.00 | 1.44 |
Current Ratio | 2.23 | 5.10 | 2.26 |
Interest Coverage | 41.34 | −92.56 | 2.71 |
|
Metric
|
FSLR
|
SEDG
|
SHLS
|
|---|---|---|---|
Return on Assets (Normalized) | 12.11% | −7.67% | 10.33% |
Return on Equity (Normalized) | 18.51% | −14.38% | 15.77% |
Return on Invested Capital (Normalized) | 16.11% | −10.79% | 13.73% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Enphase Energy Inc
ENPH
| Lmwwrjdhqw | Bmp | $14.3 Bil | |||
| NEXTracker Inc Ordinary Shares - Class A
NXT
| Qntfcvlt | Ngft | $5.3 Bil | |||
| GCL Technology Holdings Ltd
GCPEF
| — | Ltvhl | $5.2 Bil | |||
| Xinyi Solar Holdings Ltd
XNYIF
| — | Ldcr | $5.0 Bil | |||
| Xinyi Solar Holdings Ltd ADR
XISHY
| — | Ysgjc | $5.0 Bil | |||
| Sunrun Inc
RUN
| Mhlfhwsj | Ndn | $3.7 Bil | |||
| JinkoSolar Holding Co Ltd DR
JKS
| — | Jkbj | $1.5 Bil | |||
| SolarEdge Technologies Inc
SEDG
| Skfcdqpbc | Zxzd | $1.2 Bil | |||
| Shoals Technologies Group Inc Ordinary Shares - Class A
SHLS
| Gdznjysvq | Fgvjq | $854.9 Mil |
:quality(80)/author-service-images-prod-us-east-1.publishing.aws.arc.pub/morningstar/a3416e63-64d9-4054-99c0-22cd1547b5a2.jpg)
United States