First Solar (FSLR) AI Stock Analysis

• Market Cap: $18.79B
• Dividend Yield: N/A
• Average Volume (3M): 5.02M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.99
• Revenue Growth: 19.42%
• EPS Growth: 23.19%
• Country: US
• Employees: 8,100
• Sector: Technology
• Sector Strength: 84
• Industry: Solar
• EPS (TTM): 1.95
• Shares Outstanding: 107,244,480
• 10 Day Avg. Volume: 3,323,563
• 30 Day Avg. Volume: 5,019,862
• PEG Ratio: 3.31
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -527.86
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 7.92
• Enterprise Value/Ebitda: 2.14
• 1Y Price Target: $211.79
• Price Target Upside: 20.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 26

• Rating: 73 Outperform
• Price Target: $178.00 ▲(1.57%Upside)

First Solar's financial strength with strong profitability and low leverage is a key positive factor. However, cash flow challenges and concerns from the latest earnings call regarding tariffs and earnings below guidance weigh on the overall score. Technical indicators show mixed momentum, while valuation suggests reasonable pricing.

Positive Factors

Financial Outlook

The current valuation of FSLR presents an attractive opportunity, as it trades at a significant discount compared to peers despite a strong growth outlook.

Market Position

FSLR is positioned to benefit from strict Chinese-import restrictions, which limits foreign competition and enhances its market position.

Negative Factors

Regulatory Risks

The Senate will continue to search for additional savings in the budget bill, and Section 45X is not viewed as entirely 'safe' at this juncture.

Valuation Concerns

The market is currently paying over 30x P/E for FSLR's core EPS, illustrating concerns over valuation.

First Solar Business Overview & Revenue Model

Company Description

First Solar, Inc. is a leading global provider of comprehensive photovoltaic (PV) solar energy solutions. The company is prominently engaged in the design, manufacture, and sale of solar modules with an advanced thin-film semiconductor technology. First Solar operates primarily in the solar energy sector, focusing on providing environmentally sustainable and economically viable solar power alternatives to traditional fossil fuels. Its innovative solar modules are used in utility-scale solar power projects around the world, contributing to the transition towards renewable energy sources.

How the Company Makes Money

First Solar makes money through the sale of its advanced thin-film photovoltaic solar modules and the development of large-scale solar power projects. The company's revenue model is centered on manufacturing and selling these high-performance solar modules to utility companies, independent power producers, and commercial customers globally. Additionally, First Solar engages in the development, financing, engineering, procurement, and construction of solar power plants, which it either sells upon completion or operates under power purchase agreements. Key revenue streams include the direct sale of solar modules, project development services, and operations and maintenance services for solar installations. Significant partnerships with energy companies and government incentives for renewable energy further contribute to First Solar's earnings.

First Solar Financial Statement Overview

Summary

First Solar demonstrates robust financial health marked by strong revenue growth and profitability. The balance sheet is solid with low leverage, but cash flow challenges exist due to high capital expenditures.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.26B	4.21B	3.32B	2.62B	2.92B	2.71B
	Gross Profit
1.85B	1.86B	1.30B	69.86M	729.95M	680.67M
	EBIT
1.40B	1.39B	857.27M	-216.27M	186.06M	95.19M
	EBITDA
1.73B	1.87B	1.21B	46.78M	699.37M	573.81M
	Net Income Common Stockholders
1.26B	1.29B	830.78M	-44.17M	468.69M	398.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
890.76M	1.79B	2.10B	2.58B	1.83B	1.75B
	Total Assets
12.12B	12.12B	10.37B	8.25B	7.41B	7.11B
	Total Debt
630.39M	718.80M	624.39M	193.54M	239.90M	279.23M
	Net Debt
-207.25M	-902.57M	-1.32B	-1.29B	-1.21B	-947.77M
	Total Liabilities
3.93B	4.15B	3.68B	2.42B	1.45B	1.59B
	Stockholders Equity
8.19B	7.98B	6.69B	5.84B	5.96B	5.52B
Cash Flow		Free Cash Flow
-976.29M	-308.08M	-784.51M	-30.24M	-302.73M	-379.51M
	Operating Cash Flow
342.29M	1.22B	602.26M	873.37M	237.56M	37.12M
	Investing Cash Flow
-1.08B	-1.56B	-472.79M	-1.19B	-99.04M	-131.23M
	Financing Cash Flow
-115.47M	24.85M	336.85M	309.39M	40.55M	-82.59M

First Solar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 175.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 175.25 is above the 20-day moving average (MA) of 162.32, above the 50-day MA of 148.11, and below the 200-day MA of 176.25, indicating a neutral trend. The MACD of 5.70 indicates Negative momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 81.93 is Negative, 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	$8.88B	17.52	39.33%	―	21.46%	123.22%
FSLR	73 Outperform	$18.79B	14.89	16.77%	―	19.42%	23.19%
ENPH	72 Outperform	$5.98B	42.42	17.13%	―	-22.15%	-45.22%
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
ARRY	61 Neutral	$1.21B	―	-49.11%	―	-21.31%	-593.57%
SEDG	56 Neutral	$1.42B	―	-121.50%	―	-57.89%	-559.87%
CSIQ	50 Neutral	$742.72M	20.05	-0.39%	―	-19.06%	-104.91%

First Solar Corporate Events

First Solar Stockholders Meeting Highlights Key Decisions

On May 14, 2025, First Solar, Inc. held its annual meeting of stockholders where nine board members were elected, and PricewaterhouseCoopers LLP was ratified as the independent public accounting firm for 2025. Additionally, stockholders approved an advisory resolution on executive compensation but did not approve a proposal for a special shareholder meeting improvement.

The most recent analyst rating on (FSLR) stock is a Buy with a $285.00 price target. To see the full list of analyst forecasts on First Solar stock, see the FSLR Stock Forecast page.