Analyst Shahriar Pourreza reiterated a "buy" rating for the stock. Pourreza said First Solar's newly raised earnings guidance for 2015 could be conservative. The analyst expects the company to beat analysts' EPS estimates in 2015 and 2016. Pourreza predicts the company's operating margins will rise as selling prices increase.
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- Compared to its closing price of one year ago, FSLR's share price has jumped by 154.28%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- FSLR's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, FSLR has a quick ratio of 1.53, which demonstrates the ability of the company to cover short-term liquidity needs.
- The revenue fell significantly faster than the industry average of 5.2%. Since the same quarter one year prior, revenues fell by 28.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for FIRST SOLAR INC is currently lower than what is desirable, coming in at 32.62%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 8.49% significantly trails the industry average.
- Net operating cash flow has decreased to $192.21 million or 41.32% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: FSLR Ratings Report