We maintain our $185 fair value estimate for no-moat First Solar following the company's third-quarter results. We view the shares as undervalued after a selloff in recent months on fears of the global solar panel oversupply spreading to the U.S. market.
First Solar’s balance sheet strength has enabled the company to persist through solar cycles when competitors have failed.
First Solar competes in the fiercely competitive and highly commoditized solar module industry.
|
Metric
|
FSLR
|
SHLS
|
SEDG
|
|---|---|---|---|
Price/Earnings (Normalized) | 34.81 | 40.08 | 9.83 |
Price/Book Value | 2.63 | 4.48 | 1.76 |
Price/Sales | 5.25 | 6.26 | 1.28 |
Price/Cash Flow | 29.13 | 19.67 | 9.87 |
|
Metric
|
FSLR
|
SHLS
|
SEDG
|
|---|---|---|---|
Quick Ratio | 2.19 | 1.74 | 2.37 |
Current Ratio | 3.19 | 2.54 | 3.84 |
Interest Coverage | 47.02 | 7.23 | — |
|
Metric
|
FSLR
|
SHLS
|
SEDG
|
|---|---|---|---|
Return on Assets (Normalized) | 6.25% | 15.99% | 8.91% |
Return on Equity (Normalized) | 8.97% | 30.59% | 16.92% |
Return on Invested Capital (Normalized) | 7.20% | 22.74% | 11.35% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
ENPH
| Enphase Energy Inc | Lqj | $13.5 Bil | |
XNYIF
| Xinyi Solar Holdings Ltd | Cdf | $5.4 Bil | |
XISHY
| Xinyi Solar Holdings Ltd ADR | Lmjq | $5.4 Bil | |
SEDG
| SolarEdge Technologies Inc | Djgq | $4.4 Bil | |
GCPEF
| GCL Technology Holdings Ltd | Qlzy | $3.8 Bil | |
RUN
| Sunrun Inc | Sxpc | $2.6 Bil | |
NXT
| NEXTracker Inc Ordinary Shares - Class A | Gzyp | $2.5 Bil | |
SHLS
| Shoals Technologies Group Inc Ordinary Shares - Class A | Fgfl | $2.4 Bil | |
SPWR
| SunPower Corp | Kwvl | $711.3 Mil |
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