Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
NEW YORK (
-- First Solar
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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Highlights from the ratings report include:
- Since the same quarter one year prior, revenues leaped by 50.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 1580.89% to $375.09 million when compared to the same quarter last 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.29, which illustrates the ability to avoid short-term cash problems.
- FIRST SOLAR INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FIRST SOLAR INC reported poor results of -$1.19 versus -$0.50 in the prior year. This year, the market expects an improvement in earnings ($4.39 versus -$1.19).
- The gross profit margin for FIRST SOLAR INC is currently lower than what is desirable, coming in at 33.26%. It has decreased from the same quarter the previous year.
First Solar, Inc. provides solar energy solutions. It operates in two segments, Components and Systems. The Components segment engages in the design, manufacture, and sale of solar modules that convert sunlight into electricity. First Solar has a market cap of $6.2 billion and is part of the technology sector and electronics industry. The company has a P/E ratio of 13.00, below the S&P 500 P/E ratio of 18.00. Shares are up 95.6% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.