First Solar (FSLR) AI Stock Analysis

• Market Cap: $28.72B
• Dividend Yield: N/A
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.02
• 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: 2,934,948
• 30 Day Avg. Volume: 2,396,662
• 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: 0.79
• Enterprise Value/Revenue: 4.47
• Enterprise Value/Gross Profit: 11.16
• Enterprise Value/Ebitda: 11.10
• 1Y Price Target: $274.82
• Price Target Upside: 2.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 14.63
• Revenue Forecast (FY): $5.11B

• Rating: 78 Outperform
• Price Target: $304.00 ▲(13.59% Upside)

First Solar's strong financial performance and technical momentum are key strengths, supported by strategic expansion plans. However, cash flow challenges and risks from contract terminations and supply chain issues weigh on the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for First Solar's products and services, supporting long-term business expansion and market leadership in the solar industry.

New U.S. Production Facility

The new facility enhances production capacity and onshoring efforts, improving supply chain resilience and potentially boosting margins through increased domestic manufacturing.

Strong Balance Sheet

A strong balance sheet with low leverage provides First Solar with financial flexibility to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Contract Terminations

Contract terminations with BP affiliates could lead to revenue loss and impact future project pipeline, highlighting risks in customer reliability and contract management.

Supply Chain Disruptions

Supply chain issues can hinder production efficiency and lead to increased costs, affecting First Solar's ability to meet demand and maintain profit margins.

Decline in Free Cash Flow

A decline in free cash flow indicates challenges in converting earnings into cash, which could limit First Solar's ability to fund operations and growth initiatives.

First Solar Business Overview & Revenue Model

Company Description

First Solar, Inc. (FSLR) is a leading American manufacturer of solar panels and a provider of utility-scale photovoltaic power plants. Established in 1999, the company specializes in the production of thin-film solar technology, which is known for its efficiency and cost-effectiveness in converting sunlight into electricity. First Solar operates primarily in the renewable energy sector, focusing on solar energy solutions, and offers services including project development, financing, and operations and maintenance (O&M) for solar projects.

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 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: 267.64
• 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 267.64 is above the 20-day moving average (MA) of 244.46, above the 50-day MA of 226.52, and above the 200-day MA of 174.61, indicating a bullish trend. The MACD of 12.68 indicates Negative momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 81.11 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	80 Outperform	$15.53B	27.18	35.44%	―	20.37%	3.46%
FSLR	78 Outperform	$28.72B	20.55	16.86%	―	31.16%	11.97%
ENPH	62 Neutral	$3.95B	20.91	20.31%	―	20.97%	226.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ARRY	51 Neutral	$1.30B	―	-7.75%	―	35.75%	37.97%
SEDG	49 Neutral	$2.39B	―	-78.09%	―	-0.14%	66.71%
RUN	49 Neutral	$3.97B	―	-59.68%	―	13.79%	-527.48%

First Solar Corporate Events

First Solar’s Earnings Call: Record Sales Amid Challenges

First Solar’s recent earnings call presented a balanced narrative, reflecting both significant achievements and notable challenges. The company celebrated record module sales and earnings, demonstrating resilience and strategic foresight. However, the call also highlighted substantial hurdles, such as contract terminations with BP affiliates and supply chain disruptions, which tempered the overall positive sentiment.

First Solar Reports Strong Q3 2025 Financial Results

First Solar, Inc., a leading American photovoltaic solar technology and manufacturing company, specializes in advanced thin film PV technology, offering a high-performance alternative to conventional solar modules.

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.

The most recent analyst rating on (FSLR) stock is a Buy with a $278.00 price target. To see the full list of analyst forecasts on First Solar stock, see the FSLR Stock Forecast page.

First Solar Shines in Q2 2025 Earnings Call

First Solar’s recent earnings call paints a generally optimistic picture, underscored by robust module sales, earnings that surpassed expectations, and a supportive policy environment. Despite these positive signals, the company is navigating challenges such as international tariff impacts and contract terminations.

First Solar Reports Strong Q2 2025 Financial Performance

First Solar, Inc., a leading American photovoltaic solar technology and manufacturing company, specializes in advanced thin film PV technology, providing a high-performance alternative to conventional solar modules.