Bedrijfsoverzicht
First Solar, Inc. is a specialized technology firm dedicated to the manufacturing and sale of photovoltaic solar modules that utilize thin film semiconductor technology. The company operates within the broader Technology sector, specifically targeting the Solar industry, where it delivers renewable energy solutions across the United States, France, India, Chile, and various international markets. This enterprise employs a workforce of 7,900 individuals and holds a substantial market capitalization of $21.86 billion. Its annual revenue over the trailing twelve months stands at $5.22 billion, figures that collectively indicate a significant operational scale and a robust position within the global renewable energy landscape. The valuation suggests that the market assigns a high premium to the company's proprietary technology and its established distribution network, reflecting confidence in its ability to scale production and capture market share in an increasingly competitive sector.
Financiële gezondheid
Over the trailing twelve months, the company generated $5.22 billion in revenue while recording $1.53 billion in net income and $2.13 billion in EBITDA. The substantial gap between revenue and net income, where net income is approximately 29.3% of revenue, reveals an efficient cost structure with high profitability relative to sales volume. The firm generated $963.92 million in free cash flow, a metric that underscores strong financial flexibility allowing for capital expenditures, debt repayment, or strategic acquisitions without compromising operational stability. Profitability is further evidenced by a gross margin of 40.6%, an operating margin of 32.6%, and a profit margin of 29.3%, all of which indicate robust pricing power and effective cost management across the supply chain. Liquidity and solvency are supported by $2.86 billion in cash assets against $655.33 million in debt, resulting in a debt-to-equity ratio of 6.87 that suggests a conservative balance sheet with minimal leverage risk. Short-term liquidity is exceptionally strong, as indicated by a current ratio of 2.67, which implies the company can easily cover its current liabilities with its current assets. Furthermore, the Return on Equity of 17.4% and Return on Assets of 7.8% demonstrate that management is utilizing shareholder capital and total assets effectively to generate returns that exceed typical industry averages.
Waarderingsbeoordeling
The trailing twelve-month P/E ratio is 14.33, while the forward P/E is projected at 8.36, implying that the market expects a significant acceleration in earnings growth that will compress the valuation multiple over the coming year. The price-to-book ratio of 2.29 indicates that the stock trades at a moderate premium above its tangible book value, reflecting the intangible value of its intellectual property and technology stack. Alternative valuation metrics such as the price-to-sales ratio of 4.19 and the EV/EBITDA of 9.23 suggest that the company is valued conservatively relative to its sales and earnings power, particularly when compared to high-growth peers. The stock has traded between a 52-week low of $119.09 and a 52-week high of $285.99, meaning the current price sits significantly below the recent peak, reflecting a correction from the upper end of its trading range. The beta of 1.61 indicates that the stock price is highly volatile, moving with 61% more intensity than the broader market, which is characteristic of small-to-mid-cap technology or renewable energy stocks sensitive to interest rate fluctuations and policy changes.
Growth & Income
Revenue growth for the trailing twelve months was 11.1%, while earnings growth reached 32.3%, indicating that earnings are expanding at a much faster rate than revenue, which often signals improving margins, operational leverage, or cost efficiencies being realized. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means the firm retains all of its earnings to reinvest into manufacturing capacity, research and development, or market expansion rather than distributing cash to shareholders. This reinvestment strategy is typical for growth-oriented technology companies that prioritize compounding internal growth over immediate income distribution to investors. Overall, the company presents a profile characterized by double-digit earnings expansion, a lack of dividend income, and a valuation that reflects high growth expectations despite recent price volatility.