First Solar Inc

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FSLR : NASDAQ : Technology
$39.09 up 1.84 | 4.94%
Today's Range: 37.30 - 39.11
Avg. Daily Volume: 3,260,000
09/27/16 - 4:00 PM ET

Financial Analysis


FIRST SOLAR INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged 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 2.44 which clearly shows the ability to cover any 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 15.13% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)934.38896.22
EBITDA ($mil)151.1122.33
EBIT ($mil)94.457.13
Net Income ($mil)13.4193.89


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1707.951851.52
Total Assets ($mil)7544.026803.81
Total Debt ($mil)272.85342.5
Equity ($mil)5804.655041.47


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin26.5325.63
EBITDA Margin16.1713.64
Operating Margin10.16.37
Sales Turnover0.530.48
Return on Assets9.244.64
Return on Equity12.016.27
Debt Q2 FY16 Q2 FY15
Current Ratio3.233.45
Debt/Capital0.040.06
Interest Expense8.474.75
Interest Coverage11.1412.03


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)102.35100.89
Div / share0.00.0
EPS0.130.92
Book value / share56.7149.97
Institutional Own % n/a n/a
Avg Daily Volume3219885.01959373.0

Valuation


HOLD. FIRST SOLAR INC's P/E ratio indicates a significant discount compared to an average of 27.99 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 0.62 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 4.16. 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 5.21 Peers 27.99   FSLR 67.71 Peers 16.13

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.

 

Premium. 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 premium 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 16.14 Peers 18.94   FSLR NM Peers 2.65

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 0.62 Peers 4.16   FSLR 119.35 Peers -0.00

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.

 

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

FSLR is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FSLR 0.91 Peers 4.64   FSLR 22.45 Peers 4.90

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

FSLR has a sales growth rate that significantly exceeds its peers.

 

 

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