Canadian Solar (CSIQ) AI Stock Analysis

• Market Cap: $1.81B
• Dividend Yield: N/A
• Average Volume (3M): 6.56M
• Price to Earnings (P/E): 113.3
• Beta (1Y): 1.79
• Revenue Growth: -4.46%
• EPS Growth: 1645.26%
• Country: US
• Employees: 17,113
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -0.07
• Shares Outstanding: 66,972,244
• 10 Day Avg. Volume: 8,327,119
• 30 Day Avg. Volume: 6,560,987
• PEG Ratio: -0.24
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -0.27
• Enterprise Value/Market Cap: 4.19
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 6.79
• Enterprise Value/Ebitda: 56.27
• 1Y Price Target: $17.91
• Price Target Upside: -33.89% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9
• EPS Forecast (FY): -1.39
• Revenue Forecast (FY): $5.73B

• Rating: 54 Neutral
• Price Target: $22.00 ▼(-18.79% Downside)

Canadian Solar's overall stock score reflects significant financial challenges, including declining revenue and high leverage, which weigh heavily on the score. While technical indicators show some short-term strength, the high P/E ratio suggests potential overvaluation. The company's strategic initiatives in energy storage and US manufacturing provide some positive outlook, but financial stability remains a critical concern.

Positive Factors

Energy Storage Growth

Strong growth in energy storage shipments indicates a robust demand and market position, supporting long-term revenue diversification and stability.

US Manufacturing Expansion

Expanding US manufacturing capabilities strengthens supply chain resilience and positions Canadian Solar favorably in a key market.

High-Margin Project Sales

High-margin project sales enhance profitability and demonstrate effective project management and strategic market positioning.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting long-term operational and strategic initiatives.

Negative Cash Flows

Negative cash flows indicate operational inefficiencies and reliance on external financing, challenging the company's financial health and growth potential.

Decreased Solar Segment Margins

Decreased margins in the solar segment highlight cost pressures and competitive challenges, affecting profitability and market competitiveness.

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 modules, which are the core components of solar energy systems. The company has a diversified revenue model that includes several key streams: revenue from the manufacturing and sale of solar PV modules, revenue from the development and sale of solar power projects, and revenue from energy storage solutions. Additionally, Canadian Solar engages in long-term power purchase agreements (PPAs) and leases for its solar projects, allowing for predictable cash flow. The company also benefits from strategic partnerships with various stakeholders, including utility companies and governments, which can provide incentives and subsidies that enhance profitability. Furthermore, the global push for renewable energy and favorable regulatory environments in several countries contribute positively to Canadian Solar's earnings.

Canadian Solar Financial Statement Overview

Summary

Canadian Solar faces significant financial challenges, with declining revenue, high leverage, and negative cash flows. The company must focus on improving operational efficiency, reducing debt, and enhancing cash flow generation to strengthen its financial position.

Income Statement

Canadian Solar's income statement reveals a challenging period with declining revenue and profitability. The TTM data shows a significant revenue decrease of 34.2%, and the net profit margin is a low 0.27%. The gross profit margin is 18.97%, indicating some efficiency in cost management. However, the negative EBIT margin suggests operational challenges. The company needs to address its declining revenue and improve operational efficiency to enhance profitability.

Balance Sheet

The balance sheet indicates a high leverage with a debt-to-equity ratio of 2.58, which poses a financial risk. The return on equity is low at 0.57%, reflecting limited profitability relative to shareholder equity. The equity ratio stands at 18.92%, suggesting a moderate level of equity financing. The company should focus on reducing debt levels to improve financial stability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a significant free cash flow decline of 15.19% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to reported earnings. The free cash flow to net income ratio is high at 14.24, suggesting reliance on non-operational sources for cash. Improving cash flow from operations is crucial for financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.90B	5.99B	7.61B	7.47B	5.28B	3.48B
Gross Profit	1.12B	999.32M	1.28B	1.26B	909.31M	689.91M
EBITDA	135.11M	556.61M	829.66M	675.15M	479.39M	423.51M
Net Income	16.11M	36.05M	274.19M	239.97M	95.25M	146.70M
Balance Sheet
Total Assets	15.16B	13.51B	11.90B	9.04B	7.39B	6.54B
Cash, Cash Equivalents and Short-Term Investments	1.76B	2.25B	1.96B	981.43M	869.83M	1.64B
Total Debt	7.40B	5.91B	4.48B	4.04B	3.26B	2.89B
Total Liabilities	10.80B	9.36B	8.19B	6.73B	5.26B	4.64B
Stockholders Equity	2.87B	2.82B	2.56B	1.94B	1.80B	1.57B
Cash Flow
Free Cash Flow	-1.51B	-2.76B	-840.85M	288.63M	-837.75M	-455.48M
Operating Cash Flow	102.77M	-885.32M	684.62M	916.63M	-408.25M	-120.54M
Investing Cash Flow	-1.84B	-1.96B	-1.67B	-630.49M	-429.57M	-319.66M
Financing Cash Flow	1.24B	2.32B	2.05B	428.64M	614.07M	823.50M

Canadian Solar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.09
• 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 CSIQ, the sentiment is Positive. The current price of 27.09 is above the 20-day moving average (MA) of 25.94, above the 50-day MA of 18.96, and above the 200-day MA of 12.67, indicating a bullish trend. The MACD of 1.95 indicates Positive momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 37.78 is Neutral, 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
SHLS	67 Neutral	$1.37B	41.22	5.86%	―	2.68%	2.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ENPH	61 Neutral	$3.64B	19.25	20.31%	―	20.97%	226.98%
JKS	61 Neutral	$1.36B	―	-17.96%	10.74%	-34.29%	-732.90%
CSIQ	54 Neutral	$1.81B	113.30	0.56%	―	-4.46%	1645.26%
ARRY	54 Neutral	$1.14B	―	-7.75%	―	35.75%	37.97%
SEDG	49 Neutral	$2.12B	―	-78.09%	―	-0.14%	66.71%

Canadian Solar Corporate Events

Canadian Solar Reports Strong Q3 2025 Results Amid Strategic U.S. Expansion

On November 13, 2025, Canadian Solar Inc. announced its financial results for the third quarter of 2025, reporting net revenues of $1.5 billion, which was at the high end of their guidance. The company achieved a gross margin of 17.2%, surpassing expectations, driven by strong battery energy storage shipments and a strategic focus on profitable markets. Canadian Solar’s e-STORAGE division recorded a backlog increase to $3.1 billion, indicating robust future growth prospects. The company is also advancing its U.S. manufacturing facilities, with solar cell production in Indiana and lithium battery energy storage production in Kentucky expected to commence in 2026. Despite a decrease in total module shipments, the company maintained profitability through strategic project sales and disciplined financial management.

Canadian Solar’s CSI Solar Reports Q3 2025 Financial Results

On October 30, 2025, Canadian Solar’s subsidiary, CSI Solar, released its third-quarter financial report for 2025, showing a decrease in operating revenue and profits compared to the previous year. The decline was attributed to lower average selling prices and increased tariffs and freight costs, although there was growth in energy storage revenue and a reduction in manufacturing costs. Despite these challenges, the company reported a significant increase in net cash flow from operating activities due to improved sales receipts and optimized inventory management.

Canadian Solar’s Recurrent Energy Secures $825 Million for Arizona Projects

On October 21, 2025, Canadian Solar’s subsidiary, Recurrent Energy, announced the closure of $825 million in project financing for its Desert Bloom Storage and Papago Solar facilities in Maricopa County, Arizona. These projects, part of a partnership with Arizona Public Service, include a 600 MWh energy storage facility and a 150 MWac solar power plant, expected to be operational by the first half of 2026. This financing underscores Recurrent Energy’s commitment to enhancing Arizona’s grid reliability and supporting the state’s economic growth through renewable energy infrastructure.