Canadian Solar, Inc. (CSIQ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Canadian Solar, Inc.

Why is Canadian Solar, Inc. ?

With a fall in Net Sales of -28.7%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at USD -852.72 MM
NET SALES(Q) At USD 1,207.71 MM has Fallen at -28.7%
PRE-TAX PROFIT(Q) At USD -81.96 MM has Fallen at -194.32%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -3.14%, its profits have fallen by -277.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.14% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Canadian Solar, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Canadian Solar, Inc.

-3.14%

-0.37

95.68%

S&P 500

15.36%

1.17

13.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.95%

EBIT Growth (5y)

-181.39%

EBIT to Interest (avg)

1.89

Debt to EBITDA (avg)

5.98

Net Debt to Equity (avg)

1.50

Sales to Capital Employed (avg)

0.84

Tax Ratio

22.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

78.04%

ROCE (avg)

4.39%

ROE (avg)

8.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.31

EV to EBIT

-53.42

EV to EBITDA

11.08

EV to Capital Employed

0.75

EV to Sales

0.98

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.40%

ROE (Latest)

-3.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-41What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -852.72 MM

NET SALES(Q)

At USD 1,207.71 MM has Fallen at -28.7%

PRE-TAX PROFIT(Q)

At USD -81.96 MM has Fallen at -194.32%

ROCE(HY)

Lowest at -6.64%

DEBT-EQUITY RATIO (HY)

Highest at 222.66 %

INTEREST COVERAGE RATIO(Q)

Lowest at 75.83

RAW MATERIAL COST(Y)

Grown by 55.07% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.54 times

INTEREST(Q)

Highest at USD 63.62 MM

NET PROFIT(Q)

Lowest at USD -91.48 MM

Here's what is not working for Canadian Solar, Inc.

Net Sales

At USD 1,207.71 MM has Fallen at -28.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD -81.96 MM has Fallen at -194.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -91.48 MM has Fallen at -969.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD -852.72 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 63.62 MM has Grown at 21.49%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 75.83

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 222.66 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 63.62 MM

in the last five periods and Increased by 21.49% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

Lowest at USD -91.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 2.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 55.07% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales