FIRST SOLAR, INC. (FSLR) Stock Analysis
FIRST SOLAR, INC. (FSLR) Stock Analysis
Analysis from 10-Q filed 2025-10-30. Data as of Q4 2025.
Overall Grade: F (Concerning)
FIRST SOLAR, INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 16.8% | Solid returns |
| FCF Margin | 22.7% | Strong cash generation |
| Debt/Equity | 0.1x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 16.8% suggests durable competitive advantages and efficient capital allocation.
Explore FIRST SOLAR, INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: FIRST SOLAR, INC. earns 16.8% ROIC, Top 25% in Technology
FIRST SOLAR, INC.'s trailing-twelve-month ROIC of 16.8% ranks Top 25% in Technology companies (sector median: 5.2%), driven by NOPAT margin of 29.6% combined with asset turnover of 0.4x. Source: 10-Q filed 2025-10-30. Gross margin of 40.6% with operating margin at 30.6% reflects strong pricing power.
| Metric | FSLR | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.8% | Good | Above sector median of 5.2% |
| Return on Equity (ROE) | 17.7% | Good | Efficient use of shareholder equity |
| Gross Margin | 40.6% | Good | Strong pricing power |
| Operating Margin | 30.6% | Excellent | Efficient operations |
Cash Flow: FIRST SOLAR, INC. generates $1.2B FCF at 22.7% margin, positive NaN/8 quarters
FIRST SOLAR, INC. generated $1.2B in free cash flow (TTM), a 22.7% FCF margin, a margin that ranks Top 25% in Technology. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-30.
| Metric | FSLR | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 22.7% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $1.2B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: FIRST SOLAR, INC. at 0.1x leverage
FIRST SOLAR, INC.'s debt-to-equity ratio of 0.1x reflects conservative leverage. Net cash position of $2.4B provides financial flexibility. Source: 10-Q filed 2025-10-30.
| Metric | FSLR | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.1x | Excellent | Conservative capital structure |
| Net Cash Position | $2.4B | Excellent | Net cash positive |
Valuation: FIRST SOLAR, INC. trades at 18.3x earnings
FIRST SOLAR, INC. trades at a P/E of 18.3x. Free cash flow yield of 4.2% reflects market expectations for growth.
| Metric | FSLR | Rating | Context |
|---|---|---|---|
| P/E Ratio | 18.3x | Adequate | Reasonable valuation |
| EV/Sales | 5.2x | Adequate | Growth premium priced in |
| FCF Yield | 4.2% | Good | Lower cash yield |
Capital Allocation: FIRST SOLAR, INC. returns 0.0% shareholder yield
FIRST SOLAR, INC.'s total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-10-30.
| Metric | FSLR | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.8% | Top 25% | 3.2x above |
| Free Cash Flow Margin | 22.7% | Top 25% | 2.5x above |
| Gross Margin | 40.6% | Bottom 50% | 0.8x below |
| Operating Margin | 30.6% | Top 10% | 6.3x above |
| Return on Equity (ROE) | 17.7% | Top 50% | 3.6x above |
| P/E Ratio | 18.3x | N/A | - |
Financial Scorecard
| Metric | FSLR | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.8% | Good | Top 25% of sector (median: 5.2%) |
| Free Cash Flow Margin | 22.7% | Excellent | Top 25% of sector (median: 9.1%) |
| Gross Margin | 40.6% | Good | Bottom 50% of sector (median: 51.8%) |
| Debt to Equity Ratio | 5.2% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 18.3x | Adequate | Fair value |
| Free Cash Flow Yield | 4.2% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is FIRST SOLAR, INC.'s Return on Invested Capital (ROIC)?
FIRST SOLAR, INC. (FSLR) has a trailing twelve-month Return on Invested Capital (ROIC) of 16.8%. This compares above the sector median of 5.2%. An ROIC between 12-20% indicates solid capital allocation and sustainable competitive position.
Q: What is FIRST SOLAR, INC.'s Free Cash Flow Margin?
FIRST SOLAR, INC. (FSLR) has a free cash flow margin of 22.7%, generating $1.2 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is FIRST SOLAR, INC. stock overvalued or undervalued?
FIRST SOLAR, INC. (FSLR) trades at a P/E ratio of 18.3x, which is above the sector median of N/A. The EV/Sales multiple is 5.2x. Free cash flow yield is 4.2%, which is in line with market averages.
Q: What is FIRST SOLAR, INC.'s revenue and earnings growth?
FIRST SOLAR, INC. (FSLR) grew revenue by 24.1% year-over-year. Earnings per share increased by 18.2% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does FIRST SOLAR, INC. compare to competitors in Technology?
Compared to other companies in Technology, FIRST SOLAR, INC. (FSLR) shows: ROIC of 16.8% is above the sector median of 5.2% (Top 23%). FCF margin of 22.7% exceeds the sector median of 9.1% (Top 22% of sector). Gross margin at 40.6% is 11.2 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with FIRST SOLAR, INC.?
FIRST SOLAR, INC. (FSLR) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.