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First Solar Inc

Recommendation: Buy

Entry Date Symbol Recommendation Entry Price (USD) Target 1 (USD) Target 2 (USD) Holding Duration Potential Upside
26 Aug, 24 FSLR Buy USD 231.07 USD 257.0 USD 280.0 Same day 21.2%

Fundamentals

  • Previous Close 184.27
  • Market Cap29988.61M
  • Volume1340288
  • P/E Ratio28.97
  • Dividend Yield-%
  • EBITDA1439.70M
  • Revenue TTM3564.42M
  • Revenue Per Share TTM33.36
  • Gross Profit TTM 127.66M
  • Diluted EPS TTM9.67

Data Powered by EOD Historical Data (“EODHD”).

Company Overview

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

Key Positives

Enhancing Profitability: Gross Margin of 43.6% in Q1 FY24 vs 20.4% in Q1 FY23

Increased Shareholders' Wealth: ROE of 3.5% in Q1 FY24 vs Industry Median of 2.1%

Key Negatives

Lower Liquidity: Current Ratio of 2.41x in Q1 FY24 vs Industry Median of 3.45x

Higher Cash Cycle: 272.3 Days in Q1 FY24 vs Industry Median of 176.2 Days

Key Investment Risks

Dependence on Thin-Film Technology, Project Execution and Management, Production Capacity and Scaling Issues, Geopolitical and Trade Risks, etc.

Recommendation Summary

Technical Summary

Entry Price Support* Target 1 Target 2
231.07 194.0 257.0 280.0

Data Source: REFINITIV, Analysis: StockNextt

*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.

Key Reasons for Buy

FSLR’s stock price has shown remarkable resilience in the face of lower levels, suddenly shifting upwards and hinting at a possible upside move. Additionally, the 14-period Relative Strength Index (RSI) has started to reverse its downward trend, suggesting a shift in market sentiment towards optimism. However, it's worth noting that the 21-simple moving average is currently below the price, which could serve as an immediate support level for the stock.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to First Solar, Inc. (NASDAQ: FSLR) at its closing price of USD 231.07 as of Aug 23, 2024.

Key Financials in Pictures

Income Statement

Balance Sheet

Change in Cash

Total Operating Cash

Data Powered by EOD Historical Data (“EODHD”).

Peer Comparison

Sector: Technology Industry: Solar

Company Change (USD) Price (USD) Trailing PE (x) Forward PE (x) Price Sales TTM (x) Price to Book Value (x) Enterprise Value to Revenue (x) Enterprise Value to EBITDA (x)
FSLR
First Solar Inc
-6.2596 3.40% 178.01 28.97 13.44 5.89 2.92 5.44 14.89
ENPH
Enphase Energy Inc
-2.82 4.10% 65.98 64.37 38.91 6.95 16.18 6.78 26.01
NXT
Nextracker Inc. Class A Common Stock
-0.86 2.46% 34.13 16.44 12.44 2.71 15.50 2.46 15.56
XISHY
Xinyi Solar Holdings Limited
-0.1 1.25% 7.87 11.55 14.93 0.22 1.24 0.24 1.12
XNYIF
Xinyi Solar Holdings Limited
- -% 0.45 10.10 13.72 0.22 1.37 0.24 1.12

Data Powered by EOD Historical Data (“EODHD”).

Disclosures:

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

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