First Solar, Inc. (FSLR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Micron Technology, Inc.

Monolithic Power Systems, Inc.

Marvell Technology, Inc.

Analog Devices, Inc.

First Solar, Inc.

QUALCOMM, Inc.

TE Connectivity Ltd.

NXP Semiconductors NV

GLOBALFOUNDRIES, Inc.

ON Semiconductor Corp.

Microchip Technology, Inc.

Why is First Solar, Inc. ?

Poor Management Efficiency with a low ROE of 8.68%

The company has been able to generate a Return on Equity (avg) of 8.68% signifying low profitability per unit of shareholders funds

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

INTEREST COVERAGE RATIO(Q) Highest at 5,633.93

With ROE of 15.48%, it has a attractive valuation with a 2.18 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 35.03%, its profits have risen by 19.1% ; the PEG ratio of the company is 0.8

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 5.66% over the previous quarter.

Market Beating Performance

The stock has generated a return of 35.03% in the last 1 year, much higher than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to First Solar, Inc. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is First Solar, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

First Solar, Inc.

23.98%

-0.11

61.56%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.84%

EBIT Growth (5y)

30.98%

EBIT to Interest (avg)

26.81

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.47

Tax Ratio

7.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

11.38%

ROE (avg)

8.68%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.18

EV to EBIT

11.86

EV to EBITDA

9.07

EV to Capital Employed

2.23

EV to Sales

4.11

PEG Ratio

0.75

Dividend Yield

ROCE (Latest)

18.81%

ROE (Latest)

15.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 5,633.93

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 298.87 MM

DEBT-EQUITY RATIO (HY)

Highest at -1.58 %

RAW MATERIAL COST(Y)

Grown by 7.21% (YoY

CASH AND EQV(HY)

Lowest at USD 2,092.86 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.03 times

Here's what is working for First Solar, Inc.

Interest Coverage Ratio

Highest at 5,633.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

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

Debt-Equity Ratio

Highest at -1.58 % 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

Operating Cash Flow

Lowest at USD 298.87 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 2,092.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.03 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 7.21% (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