Canadian Solar Inc

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CSIQ : NASDAQ : Technology
$14.22 -0.17 | -1.10%
Today's Range: 14.07 - 14.36
Avg. Daily Volume: 2,093,800
07/29/16 - 12:39 PM ET

Financial Analysis


CANADIAN SOLAR INC's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. CANADIAN SOLAR INC has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 20.20% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)721.42860.89
EBITDA ($mil)0.00.0
EBIT ($mil)38.3878.72
Net Income ($mil)22.5861.33


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)977.241019.28
Total Assets ($mil)4800.973331.23
Total Debt ($mil)2296.181161.57
Equity ($mil)890.46740.77


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin15.5917.77
EBITDA Margin0.00.0
Operating Margin5.329.14
Sales Turnover0.691.01
Return on Assets2.778.91
Return on Equity14.9440.1
Debt Q1 FY16 Q1 FY15
Current Ratio0.831.13
Debt/Capital0.720.61
Interest Expense16.1311.2
Interest Coverage2.387.03


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)55.9755.16
Div / share0.00.0
EPS0.391.04
Book value / share15.9113.43
Institutional Own % n/a n/a
Avg Daily Volume2087680.02263260.0

Valuation


HOLD. CANADIAN SOLAR INC's P/E ratio indicates a significant discount compared to an average of 35.97 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 0.92 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 4.20. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CANADIAN SOLAR INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CSIQ 6.41 Peers 35.97   CSIQ NA Peers 26.17

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CSIQ is trading at a significant discount to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CSIQ 5.62 Peers 18.96   CSIQ NM Peers 2.94

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

CSIQ is trading at a significant discount to its peers.

 

Neutral. 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.

CSIQ's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CSIQ 0.92 Peers 4.20   CSIQ -54.59 Peers -6.14

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.

CSIQ is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CSIQ is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CSIQ 0.25 Peers 4.88   CSIQ -0.81 Peers 4.47

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.

CSIQ is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CSIQ significantly trails its peers on the basis of sales growth

 

 

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