First Solar Inc

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FSLR : NASDAQ : Technology
$39.74 | %
Today's Range: 37.93 - 40.55
Avg. Daily Volume: 3383100.0
06/23/17 - 4:00 PM ET

Financial Analysis


FIRST SOLAR INC's gross profit margin for the first quarter of its fiscal year 2017 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. FIRST SOLAR INC is extremely liquid. Currently, the Quick Ratio is 5.19 which clearly shows the ability to cover any short-term cash needs. FSLR managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 8.90% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)891.79876.07
EBITDA ($mil)46.14238.72
EBIT ($mil)12.04179.92
Net Income ($mil)9.13195.64


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2484.411903.71
Total Assets ($mil)6604.57577.79
Total Debt ($mil)379.44334.92
Equity ($mil)5227.815738.95


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin13.2638.4
EBITDA Margin5.1727.24
Operating Margin1.3520.54
Sales Turnover0.450.53
Return on Assets-7.8610.59
Return on Equity-9.9313.99
Debt Q1 FY17 Q1 FY16
Current Ratio6.323.08
Debt/Capital0.070.06
Interest Expense9.275.89
Interest Coverage1.330.53


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)104.29102.22
Div / share0.00.0
EPS0.091.9
Book value / share50.1356.14
Institutional Own % n/a n/a
Avg Daily Volume3808211.02626990.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.71 indicates a significant discount versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 5.09. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing 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 NM Peers 27.15   FSLR 5.74 Peers 18.48

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

FSLR's P/E is negative making this valuation measure meaningless.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FSLR 47.64 Peers 21.02   FSLR NA Peers 1.20

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

FSLR is trading at a significant premium 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FSLR 0.71 Peers 5.09   FSLR -163.60 Peers 14.75

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 1.24 Peers 5.07   FSLR -24.87 Peers 24.43

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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