First Solar Inc

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FSLR : NASDAQ : Technology
$33.53 -1.2 | -3.5%
Today's Range: 33.12 - 34.79
Avg. Daily Volume: 3280700.0
01/23/17 - 3:08 PM ET

Financial Analysis


FIRST SOLAR INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry. FIRST SOLAR INC has strong liquidity. Currently, the Quick Ratio is 1.96 which shows the ability to cover 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 10.33% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)688.031271.25
EBITDA ($mil)151.01462.92
EBIT ($mil)93.01397.82
Net Income ($mil)154.15349.32


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2123.641849.27
Total Assets ($mil)8087.667060.64
Total Debt ($mil)826.23327.97
Equity ($mil)5945.765388.73


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin35.543.22
EBITDA Margin21.9436.41
Operating Margin13.5231.29
Sales Turnover0.420.52
Return on Assets6.218.15
Return on Equity8.4410.68
Debt Q3 FY16 Q3 FY15
Current Ratio2.463.63
Debt/Capital0.120.06
Interest Expense6.05.7
Interest Coverage15.5169.83


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)103.91100.92
Div / share0.00.0
EPS1.493.41
Book value / share57.2253.4
Institutional Own % n/a n/a
Avg Daily Volume3263444.03271270.0

Valuation


HOLD. FIRST SOLAR INC's P/E ratio indicates a significant discount compared to an average of 32.17 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 25.41. For additional comparison, its price-to-book ratio of 0.60 indicates a significant discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 4.47. 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, FIRST 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
FSLR 7.05 Peers 32.17   FSLR NM Peers 18.82

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.

 

Neutral. 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's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FSLR 88.71 Peers 19.33   FSLR NM Peers 1.16

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.

 

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.

FSLR'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
FSLR 0.60 Peers 4.47   FSLR -13.17 Peers 18.89

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.

 

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

However, FSLR 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
FSLR 1.05 Peers 4.67   FSLR -6.36 Peers 13.84

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 industry on this measurement.

 

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

FSLR significantly trails its peers on the basis of sales growth

 

 

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