First Solar (FSLR) AI Stock Analysis

• Market Cap: $30.54B
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.97
• Revenue Growth: 31.16%
• EPS Growth: 11.97%
• Country: US
• Employees: 8,100
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): 4.24
• Shares Outstanding: 107,308,140
• 10 Day Avg. Volume: 2,032,180
• 30 Day Avg. Volume: 1,848,763
• PEG Ratio: 0.26
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 4.48
• P/FCF Ratio: -61.22
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 4.47
• Enterprise Value/Gross Profit: 11.16
• Enterprise Value/Ebitda: 11.10
• 1Y Price Target: $272.91
• Price Target Upside: 1.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): 14.61
• Revenue Forecast (FY): $5.12B

• Rating: 75 Outperform
• Price Target: $288.00 ▲(6.91% Upside)

First Solar's strong financial performance and strategic initiatives are offset by cash flow challenges and recent operational disruptions. The company's valuation is reasonable, and recent corporate events provide additional liquidity, supporting a stable outlook despite near-term risks.

Positive Factors

Revenue Growth

Consistent revenue growth highlights First Solar's expanding market presence and effective product demand, supporting long-term business sustainability.

New U.S. Production Facility

The new U.S. facility enhances production capacity and margin profile, supporting domestic manufacturing and reducing supply chain risks.

Tax Credit Agreements

These agreements provide significant liquidity, enhancing financial flexibility and supporting strategic investments in renewable energy expansion.

Negative Factors

Contract Terminations

The termination of significant contracts impacts backlog and revenue potential, posing risks to future growth and financial performance.

Supply Chain Disruptions

Supply chain issues reduce production efficiency and output, potentially affecting delivery schedules and customer satisfaction long-term.

Warranty Liabilities

Significant warranty liabilities indicate potential quality issues, which could lead to increased costs and affect brand reputation over time.

First Solar Business Overview & Revenue Model

Company Description

First Solar, Inc. provides photovoltaic (PV) solar energy solutions in the United State, Japan, France, Canada, India, Australia, and internationally. The company designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

How the Company Makes Money

First Solar generates revenue primarily through the sale of its solar modules and the development of solar power projects. The company earns money from two main segments: Manufacturing and Project Development. In the Manufacturing segment, First Solar sells its thin-film solar panels to utility companies, commercial customers, and distributors. The Project Development segment includes revenue from the construction and operation of utility-scale solar power plants, where the company often partners with other energy firms to finance and develop projects. Additionally, First Solar benefits from long-term power purchase agreements (PPAs) that provide predictable revenue streams over the lifespan of the solar installations. Significant partnerships with energy providers, government incentives, and tax credits also play a crucial role in enhancing the company's profitability.

First Solar Financial Statement Overview

Summary

First Solar shows strong revenue growth and profitability with efficient operations and a solid balance sheet. However, challenges in cash flow management, particularly the decline in free cash flow, need attention.

Income Statement

First Solar has demonstrated strong revenue growth with a 16.28% increase in TTM, supported by robust gross and net profit margins of 42.76% and 28.95% respectively. The company maintains a healthy EBIT margin of 31.81% and an EBITDA margin of 40.12%, indicating efficient operational management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.12, indicating conservative leverage. Return on equity is strong at 16.61%, showcasing effective use of equity capital. The equity ratio stands at 66.98%, highlighting a stable asset base. However, the increase in total debt from the previous year warrants monitoring.

Cash Flow

Operating cash flow is robust, but the free cash flow has declined significantly, resulting in a negative free cash flow growth rate of -165.19%. The operating cash flow to net income ratio is low at 0.10, suggesting potential cash flow management issues. The negative free cash flow to net income ratio indicates challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.05B	4.21B	3.32B	2.62B	2.92B	2.71B
Gross Profit	2.02B	1.86B	1.30B	69.86M	729.95M	680.67M
EBITDA	2.03B	1.87B	1.21B	290.55M	845.17M	550.15M
Net Income	1.40B	1.29B	830.78M	-44.17M	468.69M	398.36M
Balance Sheet
Total Assets	13.46B	12.12B	10.37B	8.25B	7.41B	7.11B
Cash, Cash Equivalents and Short-Term Investments	2.04B	1.79B	2.10B	2.58B	1.83B	1.75B
Total Debt	891.91M	718.80M	624.39M	234.13M	398.59M	482.27M
Total Liabilities	4.44B	4.15B	3.68B	2.42B	1.45B	1.59B
Stockholders Equity	9.02B	7.98B	6.69B	5.84B	5.96B	5.52B
Cash Flow
Free Cash Flow	614.52M	-308.08M	-784.51M	-30.24M	-302.73M	-379.51M
Operating Cash Flow	1.63B	1.22B	602.26M	873.37M	237.56M	37.12M
Investing Cash Flow	-799.32M	-1.56B	-472.79M	-1.19B	-99.04M	-131.23M
Financing Cash Flow	155.17M	24.85M	336.85M	309.39M	40.55M	-82.59M

First Solar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 269.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 269.39 is above the 20-day moving average (MA) of 262.64, above the 50-day MA of 254.86, and above the 200-day MA of 191.00, indicating a bullish trend. The MACD of 4.04 indicates Negative momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 74.61 is Neutral, 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	78 Outperform	$13.71B	23.65	35.44%	―	20.37%	3.46%
FSLR	75 Outperform	$30.54B	20.68	16.86%	―	31.16%	11.97%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ENPH	61 Neutral	$4.38B	22.29	20.31%	―	20.97%	226.98%
ARRY	61 Neutral	$1.54B	-16.38	-7.75%	―	35.75%	37.97%
RUN	52 Neutral	$4.70B	-1.74	-59.68%	―	13.79%	-527.48%
SEDG	49 Neutral	$1.85B	-3.15	-78.09%	―	-0.14%	66.71%

First Solar Corporate Events

First Solar Enters Major Tax Credit Agreements

On October 20, 2025, First Solar, Inc. entered into two Tax Credit transfer agreements with a leading digital payments company, involving the sale of $600 million in advanced manufacturing production tax credits generated in 2025. The agreements include a fixed transfer of $573 million payable in two installments by the end of 2025, and a variable transfer of up to $175 million, with payment due in early 2026. These agreements are expected to impact First Solar’s financial operations by providing significant liquidity and potentially enhancing its market positioning in the renewable energy sector.