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First Solar (FSLR)
NASDAQ:FSLR

First Solar (FSLR) AI Stock Analysis

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First Solar

(NASDAQ:FSLR)

Rating:78Outperform
Price Target:
$189.00
▲(14.21%Upside)
First Solar's strong financial performance and attractive valuation are the most significant factors supporting its stock score. The company's technical indicators show positive momentum, but earnings call concerns over tariffs and policy uncertainties temper the outlook. The recent tax credit sale provides additional financial flexibility, mitigating some risks.
Positive Factors
Demand and Pricing Power
FSLR is experiencing strong demand from customer inquiries as developers and EPCs rush to secure supply with the Senate bill nearing completion.
Financial Outlook
Analysts expect that if tariffs don't increase, FSLR could be tracking toward the high end of guidance for revenue and earnings.
Negative Factors
Legislative Challenges
The removal of 45X(d)(4) may significantly impact vertically integrated U.S. manufacturers' ability to claim credits on integrated upstream components, including FSLR.
Market Uncertainty
The Senate bill draft no longer explicitly allows 45X credit stacking, which may lead to poor trading for FSLR until the issue is resolved.

First Solar (FSLR) vs. SPDR S&P 500 ETF (SPY)

First Solar Business Overview & Revenue Model

Company DescriptionFirst 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 MoneyFirst 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 Key Performance Indicators (KPIs)

Any
Any
Megawatts Produced
Megawatts Produced
Indicates the total energy output generated, showcasing the company's production capacity and efficiency in meeting energy demands.
Chart InsightsFirst Solar's megawatt production has seen a consistent upward trajectory, reflecting robust demand and capacity expansion efforts. However, the latest earnings call highlights potential challenges ahead, with new tariffs and policy uncertainties that could impact international production, particularly in Malaysia and Vietnam. Despite a strong contracted backlog and successful technology deployment, these external pressures could affect future growth and profitability. Investors should monitor how these factors influence First Solar's strategic adjustments and financial performance in the coming quarters.
Data provided by:Main Street Data

First Solar Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 20.58%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Negative
The earnings call revealed several positive developments, such as a strong backlog and successful technology deployment. However, these were overshadowed by significant challenges, including earnings falling below guidance, new tariff impacts, and substantial policy uncertainty. The sentiment reflects concern over these adverse factors and their potential impacts on future operations.
Q1-2025 Updates
Positive Updates
Strong Contracted Backlog
First Solar's contracted backlog stands at 66.3 gigawatts, reflecting robust demand and a strong pipeline of future projects.
Domestic Capacity Expansion
Construction of the Alabama and Louisiana facilities is progressing, with the Louisiana facility expected to begin operations in the second half of the year, increasing U.S. nameplate manufacturing capacity to over 14 gigawatts by 2026.
CuRe Technology Deployment
Limited commercial production of modules using CuRe technology has been successful, showing enhanced energy profiles and confirming an industry-leading annual degradation rate.
Negative Updates
Earnings Per Share Below Guidance
Q1 earnings per diluted share came in below the low end of guidance at $1.95, affected by a greater portion of international versus U.S. sales.
Impact of New Tariff Regime
The newly announced tariffs, including the potential reinstatement of reciprocal tariffs, create significant economic headwinds, potentially idling production in Malaysia and Vietnam and affecting year-end forecasts.
Uncertainty in Policy and Trade Environment
Significant near-term uncertainty due to budget reconciliation, Inflation Reduction Act impacts, and evolving trade policies, including challenges from new tariff initiatives.
Company Guidance
During the First Solar Q1 2025 earnings call, the company provided detailed guidance reflecting the impacts of new tariff regimes and other factors on their operations. Key metrics highlighted include a contracted backlog of 66.3 gigawatts, with domestic capacity expansion expected to reach over 14 gigawatts by 2026. The Q1 earnings per diluted share was $1.95, which fell below the guidance range due to a mix of U.S. and international products sold. For fiscal year 2025, First Solar revised its earnings per diluted share guidance to a range of $12.50 to $17.50, accounting for the impacts of a 10% universal tariff and potential reciprocal tariffs of up to 46% affecting production in Malaysia and Vietnam. The company anticipates total module sales volumes of 15.5 to 19.3 gigawatts, with U.S. manufacturing volumes remaining unchanged. Additionally, First Solar's net cash balance at year-end 2025 is projected to be between $0.4 billion and $0.9 billion, reflecting the impact of tariffs, production adjustments, and capital expenditures.

First Solar Financial Statement Overview

Summary
First Solar shows strong financial health with high profitability and a stable balance sheet. The company benefits from effective cost management and robust revenue growth, although it faces cash flow challenges due to significant capital investments.
Income Statement
89
Very Positive
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
85
Very Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.26B4.21B3.32B2.62B2.92B2.71B
Gross Profit1.85B1.86B1.30B69.86M729.95M680.67M
EBITDA1.73B1.87B1.21B46.78M699.37M573.81M
Net Income1.26B1.29B830.78M-44.17M468.69M398.36M
Balance Sheet
Total Assets12.12B12.12B10.37B8.25B7.41B7.11B
Cash, Cash Equivalents and Short-Term Investments890.76M1.79B2.10B2.58B1.83B1.75B
Total Debt630.39M718.80M624.39M193.54M239.90M279.23M
Total Liabilities3.93B4.15B3.68B2.42B1.45B1.59B
Stockholders Equity8.19B7.98B6.69B5.84B5.96B5.52B
Cash Flow
Free Cash Flow-976.29M-308.08M-784.51M-30.24M-302.73M-379.51M
Operating Cash Flow342.29M1.22B602.26M873.37M237.56M37.12M
Investing Cash Flow-1.08B-1.56B-472.79M-1.19B-99.04M-131.23M
Financing Cash Flow-115.47M24.85M336.85M309.39M40.55M-82.59M

First Solar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price165.48
Price Trends
50DMA
156.56
Positive
100DMA
146.23
Positive
200DMA
171.71
Negative
Market Momentum
MACD
3.99
Negative
RSI
52.56
Neutral
STOCH
69.18
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 165.48 is above the 20-day moving average (MA) of 161.32, above the 50-day MA of 156.56, and below the 200-day MA of 171.71, indicating a neutral trend. The MACD of 3.99 indicates Negative momentum. The RSI at 52.56 is Neutral, neither overbought nor oversold. The STOCH value of 69.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSLR.

First Solar Risk Analysis

First Solar disclosed 34 risk factors in its most recent earnings report. First Solar reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

First Solar Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$18.99B14.0716.77%19.42%23.19%
NXNXT
76
Outperform
$9.82B19.1839.33%21.46%123.22%
71
Outperform
$5.57B38.0917.13%-22.15%-45.22%
56
Neutral
$1.20B-49.11%-21.31%-593.57%
54
Neutral
$872.65M20.05-0.39%-19.06%-104.91%
53
Neutral
$1.56B-121.50%-57.89%-559.87%
50
Neutral
C$2.97B1.83-63.12%2.59%11.24%-12.42%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSLR
First Solar
165.48
-59.75
-26.53%
CSIQ
Canadian Solar
13.31
-2.33
-14.90%
ENPH
Enphase Energy
40.94
-62.65
-60.48%
SEDG
SolarEdge Technologies
26.15
-0.72
-2.68%
ARRY
Array Technologies
7.36
-2.08
-22.03%
NXT
NEXTracker, Inc. Class A
63.94
15.62
32.33%

First Solar Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
First Solar Sells $311.86M in Tax Credits
Positive
Jun 24, 2025

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.

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.

Executive/Board ChangesShareholder Meetings
First Solar Stockholders Meeting Highlights Key Decisions
Neutral
May 16, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025