FIRST SOLAR, INC. (FSLR) - Comprehensive Stock Analysis & Investment Research
Deep dive into FIRST SOLAR, INC.'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
FIRST SOLAR, INC. Investment Summary
When evaluating whether FIRST SOLAR, INC. (FSLR) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
FIRST SOLAR, INC. (FSLR) operates within the Manufacturing sector, specifically in the Semiconductors & Related Devices industry. The company employs approximately 6,400 people. With a market capitalization of $29 billion, the company is a large-cap stock offering relative stability combined with growth potential.
Financial Performance Analysis
FIRST SOLAR, INC. generates annual revenues of approximately $5 billion. The company demonstrates exceptional profitability with a net margin of 32.4%, placing it among the most efficient operators in its industry.
From a profitability standpoint, the company has a Return on Equity (ROE) of 3.7%, suggesting room for improvement in capital efficiency. The Return on Assets (ROA) stands at 3.0%, suggesting potential for operational improvement. The gross margin of 46.5% indicates healthy product or service economics.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 4.07x indicates excellent short-term liquidity, meaning the company can comfortably cover its near-term obligations. The debt-to-equity ratio of 0.07x reflects a conservative capital structure with low leverage.
Cash Flow Generation
FIRST SOLAR, INC. currently reports negative free cash flow of $-227 million, which may reflect heavy investment in growth or operational challenges. Operating cash flow stands at $378 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by -78.7%, which merits investor attention.
Valuation Analysis
The P/E ratio of 20.6x represents a reasonable valuation that balances current earnings with growth expectations, falling within a typical range for established companies. The price-to-book ratio stands at 3.19x, indicating the market values the company above its book value, typical for profitable enterprises.
AI-Powered Price Predictions
Investment Considerations
When determining whether FIRST SOLAR, INC. is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a large-cap stock, FIRST SOLAR, INC. typically offers more stability but potentially lower growth compared to smaller companies.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
FIRST SOLAR, INC. (Stock Symbol: FSLR) is a prominent company operating within the Manufacturing sector, with a specific focus on the Semiconductors & Related Devices industry. The company's shares are publicly traded on the Nasdaq exchange.
Leadership & Workforce
The organization employs approximately 6,400 professionals, indicating a well-established company with meaningful operational scale and the human resources necessary to compete effectively in its markets.
Market Classification
With a market capitalization of $29 billion, FIRST SOLAR, INC. is classified as a large-cap stock. Large-cap companies are well-established industry leaders that typically offer investors relative stability combined with consistent returns. These companies often have diversified revenue streams, established competitive advantages, and the financial resources to weather economic downturns.
Sector & Industry Context
Operating within the Manufacturing sector, FIRST SOLAR, INC. is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Revenue & Growth Analysis
FIRST SOLAR, INC. generates annual revenues of $5 billion , indicating a well-established business with proven market demand for its products or services. This revenue base supports sustainable operations and provides capacity for continued growth investments.
Profitability Analysis
The company achieves a 32.4% net profit margin, which represents exceptional profitability significantly above most industry averages. Such high margins typically indicate strong pricing power, operational efficiency, asset-light business models, or valuable intellectual property. Companies with margins this high often enjoy sustainable competitive advantages.
Gross profit margin stands at 46.5%, a healthy margin indicating strong pricing power relative to direct production costs and efficient supply chain management.
Operating margin is 34.7%, demonstrating excellent core business efficiency with well-controlled operating expenses relative to revenue generation.
Market Valuation
Current market capitalization stands at $29 billion . This large-cap valuation typically attracts institutional investors seeking stability and liquidity. Large-cap stocks generally exhibit lower volatility and often pay dividends, making them core portfolio holdings.
Return on Investment Metrics
Return on Equity (ROE) measures 3.7%, suggesting below-average capital efficiency that may reflect industry characteristics, high equity base, or operational challenges.
Return on Assets (ROA) stands at 3.0%, indicating lower asset efficiency that may reflect industry norms or opportunities for operational improvement.
Return on Invested Capital (ROIC) measures 3.6%, which may indicate returns below the cost of capital, potentially destroying shareholder value over time if sustained.
Cash Flow Generation
Free cash flow of $-227 million indicates the company is currently consuming more cash than it generates, which may reflect heavy growth investments, working capital needs, or operational challenges.
Operating cash flow reaches $378 million , with year-over-year growth of -78.7%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
FIRST SOLAR, INC. strategically competes in the highly dynamic Semiconductors & Related Devices marketplace. As a large-cap market participant, the company has established significant competitive advantages and market presence. Large-cap companies typically benefit from brand recognition, operational scale, diverse revenue streams, and the financial resources to invest in research and development, marketing, and strategic acquisitions. This size category attracts substantial institutional ownership and analyst coverage.
Industry Competitive Landscape
FIRST SOLAR, INC. competes within the Manufacturing sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company currently shows negative free cash flow of $-227 million , with year-over-year cash flow growth of -78.7%. Negative free cash flow may reflect heavy investment in growth, working capital needs, or operational challenges. This is common for high-growth companies investing aggressively but warrants attention for mature businesses.
Margin & Pricing Power Analysis
The company maintains a 46.5% gross margin indicating healthy pricing power relative to direct production costs. This margin level suggests the company has successfully differentiated its products or services, allowing it to command prices meaningfully above input costs. Maintaining these margins requires ongoing investment in brand, technology, or other differentiating factors.
Operating margin of 34.7% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This strong operating margin indicates excellent cost control and efficient organizational structure relative to the revenue base.
Asset Utilization Efficiency
Asset turnover ratio of 0.34x indicates lower asset turnover that may reflect the industry's capital-intensive nature or potentially underutilized assets. Companies with low turnover typically depend on strong margins to generate adequate returns on capital.
Financial Strength & Leverage
Current ratio of 4.07 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.