First Solar Inc.
Find Ratings ReportsFIRST SOLAR INC's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. FIRST SOLAR INC is extremely liquid. Currently, the Quick Ratio is 2.69 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 14.58% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 1158.55 | 1002.39 |
EBITDA ($mil) | 247.73 | 23.36 |
EBIT ($mil) | 161.23 | -46.15 |
Net Income ($mil) | 349.24 | -7.55 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 2110.75 | 2581.16 |
Total Assets ($mil) | 10365.13 | 8251.23 |
Total Debt ($mil) | 624.39 | 234.13 |
Equity ($mil) | 6687.47 | 5836.06 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 30.95 | 12.98 |
EBITDA Margin | 21.38 | 2.32 |
Operating Margin | 13.92 | -4.6 |
Sales Turnover | 0.32 | 0.32 |
Return on Assets | 8.01 | -0.53 |
Return on Equity | 12.42 | -0.76 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 3.55 | 3.65 |
Debt/Capital | 0.09 | 0.04 |
Interest Expense | 7.07 | 3.13 |
Interest Coverage | 22.81 | -14.73 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 106.85 | 106.61 |
Div / share | 0.0 | 0.0 |
EPS | 3.25 | -0.07 |
Book value / share | 62.59 | 54.74 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 2166464.0 | 2393864.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 53.34 for the Computer and Electronic Product Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.39 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, FIRST SOLAR INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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FSLR 19.30 | Peers 53.34 | FSLR 26.50 | Peers 44.47 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. FSLR is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. FSLR is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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FSLR 6.91 | Peers 26.06 | FSLR 0.26 | Peers 1.95 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. FSLR is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. FSLR trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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FSLR 2.39 | Peers 23.59 | FSLR 1942.85 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. FSLR is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. FSLR is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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FSLR 4.81 | Peers 14.13 | FSLR 26.69 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. FSLR is trading at a significant discount to its subsector on this measurement. |
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share. FSLR is keeping pace with its peers on the basis of sales growth. |
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