First Solar (FSLR) AI Stock Analysis

• Market Cap: $21.44B
• Dividend Yield: N/A
• Average Volume (3M): 2.95M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.09
• Revenue Growth: 15.39%
• EPS Growth: 4.28%
• Country: US
• Employees: 8,100
• Sector: Technology
• Sector Strength: 92
• Industry: Solar
• EPS (TTM): 3.18
• Shares Outstanding: 107,247,650
• 10 Day Avg. Volume: 3,008,034
• 30 Day Avg. Volume: 2,952,299
• 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: 0.82
• Enterprise Value/Revenue: 4.07
• Enterprise Value/Gross Profit: 9.51
• Enterprise Value/Ebitda: 10.14
• 1Y Price Target: $217.85
• Price Target Upside: 3.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 79 Outperform
• Price Target: $229.00 ▲(8.55% Upside)

First Solar's overall stock score of 79 reflects its strong financial performance and positive technical indicators. The company's strategic expansion and favorable policy environment contribute to a positive outlook, despite challenges in cash flow and international trade. The valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Financial Performance

FSLR's reported solid Q2 results, with both revenues and EPS ahead of expectations.

Market Position

First Solar is well-positioned in the U.S. market with significant pricing power, benefiting from current policy momentum and regulatory protections.

Regulatory Impact

Supportive policy changes are expected to enhance U.S. volume growth for First Solar while potentially curbing non-compliant imports, reinforcing its regulatory advantages.

Negative Factors

Regulatory Challenges

Potential changes to Treasury’s interpretation of rules and any erosion of the safeharboring window could impact First Solar’s supply and demand dynamics.

Regulatory Uncertainty

Uncertainty around the Treasury's forthcoming safe harbor rules and Interior Department permitting could keep the near-term booking pace softer.

Tariff Risks

Potential for additional international curtailment due to risk related to tariffs, Section 232 investigation on polysilicon and derivatives, and FEOC restrictions.

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 through several key streams. Primarily, the company earns money from the sale of its solar panels to utility companies and commercial customers, leveraging its advanced thin-film technology to offer competitive pricing. Additionally, First Solar engages in project development, where it builds and sells large-scale solar power plants, often entering long-term power purchase agreements (PPAs) that provide stable revenue over time. The company also generates income from the O&M services it provides to its solar projects, ensuring they operate efficiently post-installation. Significant partnerships with utilities and project developers further enhance its revenue potential, while government incentives and renewable energy credits play a crucial role in the financial viability of its projects.

First Solar Financial Statement Overview

Summary

First Solar exhibits strong financial health with robust profitability and balance sheet stability. The company reports a high gross profit margin of 42.8% and a net profit margin of 28.9%, along with solid revenue growth. However, challenges in cash flow management, indicated by a negative free cash flow of -$942.7 million, highlight potential issues in cash generation and capital management.

Income Statement

First Solar exhibits strong profitability with a robust gross profit margin of 42.8% and net profit margin of 28.9% in TTM (Trailing-Twelve-Months). The revenue growth rate of 3.3% from 2024 to TTM indicates steady growth. The company also maintains solid EBIT and EBITDA margins of 31.4% and 37.3% respectively, showcasing efficient operational management.

Balance Sheet

The company has a healthy balance sheet with a low debt-to-equity ratio of 0.07 in TTM, indicating minimal leverage. The equity ratio remains strong at 66.5%, reflecting financial stability and resilience. However, the return on equity (ROE) is modest at 14.7%, suggesting potential for improved profitability.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow (FCF) of -$942.7 million in TTM, primarily due to significant capital expenditures. The operating cash flow to net income ratio stands at 0.24, suggesting room for improvement in cash conversion. Despite this, the company has managed to maintain a positive operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.34B	4.21B	3.32B	2.62B	2.92B	2.71B
Gross Profit	1.86B	1.86B	1.30B	69.86M	729.95M	680.67M
EBITDA	1.74B	1.87B	1.21B	46.78M	699.37M	573.81M
Net Income	1.26B	1.29B	830.78M	-44.17M	468.69M	398.36M
Balance Sheet
Total Assets	12.86B	12.12B	10.37B	8.25B	7.41B	7.11B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.79B	2.10B	2.58B	1.83B	1.75B
Total Debt	1.07B	718.80M	624.39M	193.54M	239.90M	279.23M
Total Liabilities	4.31B	4.15B	3.68B	2.42B	1.45B	1.59B
Stockholders Equity	8.55B	7.98B	6.69B	5.84B	5.96B	5.52B
Cash Flow
Free Cash Flow	-942.70M	-308.08M	-784.51M	-30.24M	-302.73M	-379.51M
Operating Cash Flow	298.86M	1.22B	602.26M	873.37M	237.56M	37.12M
Investing Cash Flow	-1.24B	-1.56B	-472.79M	-1.19B	-99.04M	-131.23M
Financing Cash Flow	399.50M	24.85M	336.85M	309.39M	40.55M	-82.59M

First Solar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 210.96
• 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 FSLR, the sentiment is Positive. The current price of 210.96 is above the 20-day moving average (MA) of 186.83, above the 50-day MA of 173.28, and above the 200-day MA of 165.56, indicating a bullish trend. The MACD of 8.44 indicates Negative momentum. The RSI at 67.77 is Neutral, neither overbought nor oversold. The STOCH value of 83.23 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
FSLR	79 Outperform	$21.44B	18.76	15.92%	―	15.39%	4.28%
NXT	76 Outperform	$8.96B	18.45	37.20%	―	13.26%	3.08%
ENPH	75 Outperform	$4.56B	28.18	19.79%	―	4.39%	37.70%
ARRY	64 Neutral	$1.16B	―	-44.13%	―	6.36%	-1683.09%
Sector *	61 Neutral	$35.97B	6.65	-10.17%	1.99%	8.60%	-7.54%
CSIQ	54 Neutral	$840.50M	20.05	-0.39%	―	-19.06%	-104.91%
SEDG	51 Neutral	$1.85B	―	-131.02%	―	-36.07%	-233.14%

First Solar Corporate Events

First Solar Enters Tax Credit Transfer Agreement

On July 28, 2025, First Solar, Inc. entered into a Tax Credit Transfer Agreement with a financial institution to sell up to $391 million in advanced manufacturing production tax credits. This transaction, involving the sale of module components produced in the U.S., is expected to impact the company’s financial operations positively, with payments structured in three installments throughout 2025.

First Solar Sells $311.86M in Tax Credits

On June 20, 2025, First Solar, Inc. entered into a Tax Credit Transfer Agreement with a leading financial institution to sell $311.86 million of advanced manufacturing production tax credits. The purchase price was set at $296.27 million, and the transaction is expected to enhance the company’s financial flexibility and strengthen its position in the renewable energy market.