Canadian Solar (CSIQ) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: N/A
• Average Volume (3M): 3.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.82
• 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: 4,694,656
• 30 Day Avg. Volume: 3,178,368
• 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: 4.71
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 6.26
• Enterprise Value/Ebitda: -253.40
• 1Y Price Target: $13.52
• Price Target Upside: -49.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $25.00 ▼(-6.51% Downside)

Canadian Solar's overall score is primarily impacted by financial challenges, including declining profitability and high leverage. While technical indicators show bullish momentum, the stock's valuation is unattractive due to a negative P/E ratio. The earnings call provided mixed signals with strong module shipments but profitability challenges.

Positive Factors

Strong Gross Margin Performance

Exceeding gross margin guidance indicates operational efficiency and strong demand in key markets, supporting long-term profitability.

Sustainability Achievements

Sustainability efforts enhance brand reputation and align with global trends, potentially driving customer and investor interest.

Project Financing Secured

Securing significant financing for new projects strengthens market position and supports future revenue growth in renewable energy.

Negative Factors

Rising Supply Chain Costs

Increased supply chain costs can pressure margins and profitability, potentially impacting competitive pricing and financial stability.

Declining Profitability

Declining profitability indicates operational challenges that could hinder growth and reduce financial flexibility over time.

High Leverage

High leverage can limit strategic options and increase vulnerability to economic downturns, affecting long-term sustainability.

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's financial performance is challenged by declining revenue growth, high debt levels, and negative cash flow trends. The income statement shows a negative EBIT margin and shrinking net profit margin, while the balance sheet indicates high financial leverage. Cash flow difficulties 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.92B	5.99B	7.61B	7.47B	5.28B	3.48B
Gross Profit	1.11B	999.32M	1.28B	1.26B	909.31M	689.91M
EBITDA	-27.40M	556.61M	829.66M	675.15M	494.31M	423.51M
Net Income	-6.90M	36.05M	274.19M	239.97M	95.25M	146.70M
Balance Sheet
Total Assets	14.81B	13.51B	11.90B	9.04B	7.39B	6.54B
Cash, Cash Equivalents and Short-Term Investments	1.86B	2.25B	1.96B	981.43M	869.83M	1.18B
Total Debt	7.13B	5.91B	4.48B	4.01B	3.26B	2.81B
Total Liabilities	10.64B	9.36B	8.19B	6.73B	5.26B	4.64B
Stockholders Equity	2.85B	2.82B	2.56B	1.94B	1.80B	1.57B
Cash Flow
Free Cash Flow	-2.03B	-2.75B	-840.85M	288.63M	-837.75M	-455.48M
Operating Cash Flow	-240.15M	-885.32M	684.62M	916.63M	-408.25M	-120.54M
Investing Cash Flow	-2.05B	-1.96B	-1.67B	-630.49M	-429.57M	-319.66M
Financing Cash Flow	2.42B	2.32B	2.05B	428.64M	614.07M	823.50M

Canadian Solar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 26.74 is above the 20-day moving average (MA) of 17.28, above the 50-day MA of 14.31, and above the 200-day MA of 11.47, indicating a bullish trend. The MACD of 2.73 indicates Negative momentum. The RSI at 82.03 is Negative, neither overbought nor oversold. The STOCH value of 85.82 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
SHLS	73 Outperform	$1.55B	47.07	5.86%	―	2.68%	2.90%
ENPH	62 Neutral	$3.80B	22.28	20.31%	―	20.97%	226.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JKS	60 Neutral	$1.24B	―	―	9.60%	-30.26%	-156.69%
CSIQ	51 Neutral	$1.47B	―	-0.25%	―	-9.11%	-118.62%
ARRY	51 Neutral	$1.18B	―	-44.13%	―	35.75%	37.97%
SEDG	49 Neutral	$1.89B	―	-78.09%	―	-0.14%	―

Canadian Solar Corporate Events

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.

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.