FSLR

First Solar

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Solar

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/05/26

Business Summary

First Solar designs and manufactures solar modules and sells utility-scale photovoltaic solutions, generating revenue from module shipments and system development tied to long-term energy demand. Its moat is rooted in manufacturing scale, technological differentiation within solar production, and operational efficiency that supports 16.00% operating margins. Strong returns on capital, evidenced by 15.80% ROIC, indicate it can reinvest profitably rather than merely chase volume. The balance sheet strength, highlighted by a 5.3 Altman Z-Score and 2.7 current ratio, allows it to navigate industry cycles while funding expansion without excessive dilution or leverage.

VALUATION

P/E

14.3

Market Cap ($M USD)

$21,863

Forward P/E

8.6

PEG

0.3

PRICE TO SALES

4.2

PRICE TO BOOK

2.3

EV / EBITDA

9.1

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$14.25

Next Year EPS Growth Estimate

$23.67

Next Year Revenue Growth Estimate

16.90%

Return on Equity (ROE)

16.00%

Operating Margin

30.60%

Debt-to-Equity

0.1

Piotroski F-Score

7

Altman Z-Score

5.3

Return on Invested Capital (ROIC)

15.80%%

Current Ratio

2.7

Quick Ratio

Gainseekers Quantitative Analysis

Summary

FSLR is trading like a cyclical industrial when the numbers scream disciplined growth compounder. A 14.3 P/E collapsing to a Forward P/E of 8.6 alongside EPS expected to jump from 9.1 to 14.25 implies the market is discounting durability, not performance. The 0.3 forward PEG suggests growth is dramatically underpriced, while an Altman Z-Score of 5.3 signals minimal bankruptcy risk and strong balance sheet stability. With a 2.3 Price/Book and 4.2 Price/Sales, you are not paying bubble multiples for a business generating 16.00% operating margins and 16.90% ROE. This is not a distressed asset—it is priced like one despite solid profitability and financial safety metrics.

AI Exposure / Tech Reliance

As a Solar company in the Technology sector, FSLR sits at the core of infrastructure powering AI data centers and electrification trends. AI expansion increases electricity demand, directly reinforcing long-term structural demand for scalable solar generation. Its positioning within renewable energy makes it a beneficiary of both digital infrastructure growth and grid modernization.

The Bull Case

A GARP investor buys this because the math is asymmetric. ROIC at 15.80% and ROE at 16.90% show the company converts capital into profit at attractive rates, while a Piotroski F-Score of 7 confirms strong fundamental quality and improving financial characteristics. Operating margins of 16.00% combined with a manageable 30.60% Debt/Equity indicate disciplined execution without balance sheet strain. The Forward P/E of 8.6 versus EPS Next Year of 14.25 creates a compelling growth-to-price disconnect, reinforced by a 0.3 PEG that signals growth is being discounted aggressively. Add a 2.7 current ratio and 5.3 Altman Z-Score, and you have a financially resilient operator trading at a valuation that assumes cyclical deterioration rather than expansion.

The Bear Case

The bear case hinges on cyclicality and capital intensity. A 30.60% Debt/Equity ratio is reasonable, but in a solar downturn it could amplify earnings volatility given the industry’s exposure to pricing pressure and policy risk. The absence of a meaningful dividend, with a 0.1 yield and no dividend growth history, means shareholders rely entirely on execution and multiple expansion for returns. If projected growth fails to materialize, that ultra-low 0.3 PEG could quickly normalize upward, exposing how sensitive the thesis is to forward estimates. Solar remains structurally competitive, and any margin compression from the current 16.00% operating level would quickly pressure sentiment.

Market Sentiment & Smart Money

Short Interest %

9.30%

Analyst Consensus

2.17

Average Analyst Price Target

$247.13

Institutional Ownership %

99.30%

1-Year Beta

1.54

Insider Buying % (6 Mo)

5.40%%

Distance to 52-Week High

71.20%%

Distance to 52-Week Low

170.90%%