Canadian Solar (CSIQ) AI Stock Analysis

• Market Cap: $867.29M
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 1.77
• Revenue Growth: -9.11%
• EPS Growth: -118.62%
• Country: US
• Employees: 17,113
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): 0.11
• Shares Outstanding: 66,972,244
• 10 Day Avg. Volume: 1,877,550
• 30 Day Avg. Volume: 1,913,542
• 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: 8.01
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 6.95
• Enterprise Value/Ebitda: 24.18
• 1Y Price Target: $13.00
• Price Target Upside: -2.26% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 50 Neutral
• Price Target: $12.00 ▼(-9.77% Downside)

Canadian Solar's overall stock score reflects significant financial and valuation challenges. High debt levels, negative cash flow trends, and a negative P/E ratio are major concerns. While technical analysis shows some short-term bullish signals, the overall outlook is tempered by operational inefficiencies and profitability pressures.

Positive Factors

Strong Gross Margin Performance

Exceeding gross margin guidance indicates effective cost management and pricing strategy, enhancing profitability and competitive positioning in the solar market.

Sustainability Achievements

Significant sustainability achievements enhance brand reputation and align with global environmental trends, potentially attracting eco-conscious investors and customers.

Project Development Pipeline

A robust project development pipeline supports future revenue growth and market expansion, positioning Canadian Solar as a leader in solar and energy storage solutions.

Negative Factors

High Debt Levels

High debt levels can strain financial flexibility and increase vulnerability to interest rate changes, impacting long-term financial stability.

Negative Cash Flow Trends

Negative cash flow trends highlight operational inefficiencies and liquidity challenges, potentially limiting the company's ability to invest in growth opportunities.

Declining Revenue Growth

Declining revenue growth suggests challenges in market demand or competitive positioning, which could affect long-term profitability and market share.

Canadian Solar Business Overview & Revenue Model

Company Description

Canadian 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 Money

Canadian Solar generates revenue primarily through the sale of solar photovoltaic modules, which are sold to distributors, installers, and project developers around the globe. Additionally, the company earns income from its project development segment by constructing and selling solar power plants, as well as through long-term power purchase agreements (PPAs) that provide stable cash flow from operating solar facilities. Key revenue streams include module sales, project sales, and operations and maintenance services. Canadian Solar has established significant partnerships with various stakeholders in the energy sector, including utility companies and government agencies, to enhance its market presence and secure contracts that contribute to its earnings. The company is also involved in the energy storage market, which is an emerging revenue source as demand for integrated solar and storage solutions increases.

Canadian Solar Financial Statement Overview

Summary

Canadian Solar faces significant financial challenges, with declining revenue growth, high debt levels, and negative cash flow trends. The income statement shows reduced profitability, and the balance sheet indicates high financial leverage. Cash flow issues further highlight operational inefficiencies and liquidity concerns.

Income Statement

Canadian Solar's income statement reveals challenges with profitability and growth. The gross profit margin for 2024 is approximately 16.67%, indicating a decline from previous years, reflecting increased cost pressures. The company reported a negative EBIT margin of -2.08%, showing operating challenges. The revenue growth rate from 2023 to 2024 was negative at -21.28%, indicating a significant decline in sales. Net profit margin shrank to 0.60%, highlighting reduced profitability despite positive net income.

Balance Sheet

The balance sheet of Canadian Solar showcases a mixed financial position. The debt-to-equity ratio stands at 2.10, indicating high financial leverage and potential risk from over-reliance on debt financing. However, the equity ratio is 20.84%, reflecting moderate equity support. Return on equity (ROE) for 2024 is a modest 1.28%, suggesting limited returns for shareholders. Overall, the company maintains a balance between assets and liabilities, but high debt levels remain a concern.

Cash Flow

Canadian Solar's cash flow statement highlights significant cash flow challenges. The company experienced a negative free cash flow growth rate of -227.06% from 2023 to 2024, indicating declining free cash availability. The operating cash flow to net income ratio is negative, suggesting operational inefficiencies, while the free cash flow to net income ratio is also unfavorable. This highlights the company's difficulty in generating cash from operations, which may affect liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.99B	7.61B	7.47B	5.28B	3.48B
Gross Profit	999.32M	1.28B	1.26B	909.31M	689.91M
EBITDA	556.61M	829.66M	675.15M	494.31M	423.51M
Net Income	36.05M	274.19M	239.97M	95.25M	146.70M
Balance Sheet
Total Assets	13.51B	11.90B	9.04B	7.39B	6.54B
Cash, Cash Equivalents and Short-Term Investments	2.25B	1.96B	981.43M	869.83M	1.18B
Total Debt	5.91B	4.48B	4.01B	3.26B	2.81B
Total Liabilities	9.36B	8.19B	6.73B	5.26B	4.64B
Stockholders Equity	2.82B	2.56B	1.94B	1.80B	1.57B
Cash Flow
Free Cash Flow	-2.75B	-840.85M	288.63M	-837.75M	-455.48M
Operating Cash Flow	-885.32M	684.62M	916.63M	-408.25M	-120.54M
Investing Cash Flow	-1.96B	-1.67B	-630.49M	-429.57M	-319.66M
Financing Cash Flow	2.32B	2.05B	428.64M	614.07M	823.50M

Canadian Solar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 13.3 is above the 20-day moving average (MA) of 11.29, above the 50-day MA of 11.70, and above the 200-day MA of 10.79, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 64.07 is Neutral, neither overbought nor oversold. The STOCH value of 80.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSIQ.

Canadian Solar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENPH	75 Outperform	4.97B	29.21	19.84%	―	4.39%	37.70%
SHLS	67 Neutral	1.29B	60.02	4.26%	―	-11.95%	-7.87%
ARRY	64 Neutral	1.22B	-4.66	-57.01%	―	6.36%	-1683.09%
JKS	61 Neutral	1.28B	-5.07	0.27%	10.87%	-30.26%	-156.69%
SEDG	51 Neutral	2.22B	-1.27	-334.37%	―	-36.07%	-233.14%
CSIQ	50 Neutral	$867.29M	20.05	-0.25%	―	-9.11%	-118.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Canadian Solar Corporate Events

Canadian Solar Reports Strong Q2 2025 Results Amid Market Challenges

On August 21, 2025, Canadian Solar reported its financial results for the second quarter ending June 30, 2025. The company experienced a 14% increase in solar module shipments and exceeded its gross margin guidance with a 29.8% margin. Despite revenue coming in below expectations due to delays in storage shipments and project sales, the company managed to achieve a net income of $7 million. Canadian Solar continues to navigate market challenges, focusing on risk management and sustainable profitability, while expanding its project development pipeline, which includes 27.3 GWp of solar projects and 80 GWh of battery energy storage projects.

Canadian Solar Inc. Concludes Successful 2025 Annual Shareholder Meeting

On June 20, 2025, Canadian Solar Inc. held its Annual Meeting of Shareholders, where all proposals submitted for approval were passed. The shareholders elected the board of directors and re-appointed Deloitte Touche Tohmatsu as auditors, authorizing the directors to fix their remuneration. This meeting reinforces Canadian Solar’s stable governance and operational continuity, potentially strengthening its position in the renewable energy sector.