First Solar, Inc. (FSLR) stock analysis

P/E below its 5-year median

First Solar's P/E of 9.9 is below its own 5-year median of 19.7.

P/E below the industry

First Solar's P/E of 9.9 is below the Electronic Components and Accessories median of 34.1.

EV/EBITDA below its 5-year median

First Solar's EV/EBITDA of 6.8 is below its 5-year median of 12.6.

P/B below the industry

First Solar's price-to-book of 1.69 is below the Electronic Components and Accessories median of 3.21.

Trading below fair value

The share price of $171.39 is below our fair value estimate of $417.05.

Margin of safety over 20%

The price is 58.9% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 25.8% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 32.9% over the last twelve months, against a 5-year average of 30.9% a year.

Growing slower than the industry

Revenue grew -0.7% over the last twelve months; the Electronic Components and Accessories median is 17.6%.

Guidance lowered

First Solar lowered its 2026 Operating Expenses outlook on Oct 29, 2026.

Gross margin improving

Gross margin was 49.3% over the last twelve months, against 40.0% a year earlier.

Return on equity under 15%

Return on equity was 18.7% over the last twelve months and averaged 11.2% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 21.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

First Solar's return on equity of 18.7% is above the Electronic Components and Accessories median of 5.0%.

Earnings grew over 5 years

Net income grew 30.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 37.1% over the last twelve months, against a 5-year average of 19.9%.

Net margin above the industry

First Solar's net margin of 37.1% is above the Electronic Components and Accessories median of 3.0%.

Low debt

Debt is 1.0% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 5.1% five years ago to 1.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 779% of total debt.

Interest well covered

Operating income covers interest expense 70.3 times.

Short-term assets cover short-term debts

Current assets are 2.57 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.41; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

First Solar has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.