First Solar, Inc. (FSLR)

First Solar, Inc. (FSLR) Energy Operations & Outlook

First Solar, Inc. is a global leader in cadmium telluride (CdTe) thin-film solar modules, serving utility-scale and commercial customers. With a high profit margin and strategic focus on sustainable energy solutions, First Solar is positioned to capitalize on the growing demand for renewable energy.

What Is the Investment Thesis for FSLR?

First Solar presents a compelling investment case based on its strong market position, high profit margins, and strategic focus on utility-scale solar projects. With a P/E ratio of 16.4 and a profit margin of 30.7%, the company demonstrates financial health and efficient operations. The increasing global demand for renewable energy, coupled with government incentives and declining solar energy costs, serves as a significant growth catalyst. First Solar's advanced CdTe technology offers a cost advantage over traditional silicon-based solar panels, enhancing its competitiveness. Key value drivers include expanding production capacity, securing long-term supply agreements, and penetrating new geographic markets. Potential risks include fluctuations in raw material prices, increased competition from other solar panel manufacturers, and changes in government regulations related to renewable energy.

Based on FMP financials and quantitative analysis

FSLR Key Highlights

• Market Cap of $24.13B reflects investor confidence in First Solar's market leadership and growth potential.
• P/E Ratio of 16.4 indicates that First Solar is attractively valued compared to its earnings.
• Profit Margin of 30.7% demonstrates efficient operations and strong pricing power.
• Gross Margin of 41.7% highlights First Solar's ability to manage production costs effectively.
• Beta of 1.61 suggests that First Solar's stock price is more volatile than the overall market.

Who Are FSLR's Competitors?

FSLR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FSLR's Key Strengths?

• Proprietary CdTe technology.
• High profit and gross margins.
• Strong market position in utility-scale solar.
• Global presence and established customer base.

What Are FSLR's Weaknesses?

• Reliance on cadmium and tellurium supply.
• Higher beta indicates greater stock price volatility.
• Limited diversification beyond solar modules.
• Susceptible to changes in government regulations.

What Could Drive FSLR Stock Higher?

• Expansion of manufacturing capacity to increase production output.
• Government incentives and subsidies promoting renewable energy adoption.
• Increasing global demand for solar energy solutions.
• Potential new partnerships and collaborations to expand market reach.

What Are the Key Risks for FSLR?

• Inconsistent delivery — missed Wall Street EPS estimates in 4 of the last 8 reported quarters.
• Insider selling — insiders were net sellers of roughly $3.1M recently.
• Fluctuations in raw material prices, particularly cadmium and tellurium.
• Increased competition from other solar panel manufacturers.
• Changes in government regulations related to renewable energy.
• Technological disruptions in the solar industry.
• Global economic conditions impacting demand for solar energy projects.

What Are the Growth Opportunities for FSLR?

• Expanding Production Capacity: First Solar can increase its revenue and market share by expanding its manufacturing capacity to meet the growing demand for solar panels. The company is investing in new manufacturing facilities to boost production output. This expansion will enable First Solar to capitalize on large-scale utility projects and secure long-term supply agreements. The global solar panel market is projected to reach hundreds of billions of dollars in the coming years, providing ample opportunity for growth.
• Penetrating New Geographic Markets: First Solar can diversify its revenue streams and reduce its reliance on existing markets by expanding into new geographic regions. Emerging markets in Asia, Latin America, and Africa offer significant growth potential due to increasing energy demand and favorable government policies. By establishing a presence in these markets, First Solar can tap into new customer segments and increase its global footprint. This expansion strategy will require strategic partnerships and localized product offerings.
• Developing Advanced Solar Technologies: First Solar can maintain its competitive edge by investing in research and development to develop advanced solar technologies. This includes improving the efficiency and durability of its CdTe solar modules, as well as exploring new materials and manufacturing processes. By staying at the forefront of technological innovation, First Solar can offer superior products and capture a larger share of the market. The company's R&D efforts will focus on reducing production costs and increasing energy output.
• Securing Long-Term Supply Agreements: First Solar can ensure a stable supply of raw materials and reduce its exposure to price fluctuations by securing long-term supply agreements with key suppliers. This will provide greater certainty over its production costs and enable it to offer competitive pricing to its customers. Long-term supply agreements will also strengthen First Solar's relationships with its suppliers and ensure a reliable supply chain. The company is actively negotiating long-term agreements with suppliers of cadmium and tellurium.
• Leveraging Government Incentives: First Solar can benefit from government incentives and subsidies that promote the adoption of renewable energy. These incentives can include tax credits, feed-in tariffs, and renewable energy mandates. By actively engaging with policymakers and advocating for supportive policies, First Solar can create a more favorable business environment and increase the demand for its products. The company is working closely with government agencies to identify and leverage available incentives.

What Opportunities Does FSLR Have?

• Expanding production capacity to meet growing demand.
• Penetrating new geographic markets.
• Developing advanced solar technologies.
• Leveraging government incentives and subsidies.

What Threats Does FSLR Face?

• Fluctuations in raw material prices.
• Increased competition from other solar panel manufacturers.
• Changes in government regulations related to renewable energy.
• Technological disruptions in the solar industry.

What Are FSLR's Competitive Advantages?

• Proprietary CdTe technology offers a cost advantage.
• Economies of scale in manufacturing solar modules.
• Established relationships with key customers and suppliers.
• Strong brand reputation for quality and reliability.

What Does FSLR Do?

Founded in 1999 and headquartered in Tempe, Arizona, First Solar, Inc. has evolved into a prominent player in the photovoltaic (PV) solar energy sector. Originally named First Solar Holdings, Inc., the company rebranded in 2006 to reflect its singular focus on solar energy solutions. First Solar specializes in designing, manufacturing, and selling cadmium telluride (CdTe) solar modules, which convert sunlight directly into electricity. These modules are known for their cost-effectiveness and efficiency in large-scale deployments. The company serves a diverse range of customers, including developers and operators of solar power systems, utilities, independent power producers (IPPs), and commercial and industrial (C&I) companies. First Solar's geographic reach extends across the United States, Japan, France, Canada, India, Australia, and other international markets, underscoring its global presence and commitment to advancing solar energy adoption. The company's integrated approach, from module design to project development support, distinguishes it within the competitive solar energy landscape. With a strong emphasis on research and development, First Solar continuously seeks to improve the performance and durability of its solar modules, ensuring long-term value for its customers and stakeholders. The company's commitment to sustainability is reflected in its responsible manufacturing processes and end-of-life module recycling program.

What Products and Services Does FSLR Offer?

• Designs and manufactures cadmium telluride (CdTe) solar modules.
• Converts sunlight into electricity using photovoltaic (PV) technology.
• Serves developers and operators of solar power systems.
• Provides solar energy solutions to utilities and independent power producers.
• Offers solar products to commercial and industrial companies.
• Operates in the United States, Japan, France, Canada, India, and Australia.
• Supports system owners with solar energy solutions.

How Does FSLR Make Money?

• Manufactures and sells CdTe solar modules.
• Generates revenue through direct sales to customers.
• Provides project development support and services.
• Focuses on utility-scale and commercial solar projects.

What Industry Does FSLR Operate In?

The solar energy industry is experiencing rapid growth, driven by increasing global demand for renewable energy and declining costs of solar technology. Government policies, such as tax incentives and renewable energy mandates, further support industry expansion. The competitive landscape includes both established players like First Solar and emerging companies offering innovative solar solutions. First Solar's focus on CdTe technology differentiates it from competitors primarily using silicon-based panels. The industry is projected to continue growing at a double-digit rate, presenting significant opportunities for First Solar to expand its market share and revenue.

Who Are FSLR's Key Customers?

• Utilities seeking to generate renewable energy.
• Independent power producers (IPPs) developing solar power plants.
• Commercial and industrial companies looking to reduce energy costs.
• Developers and operators of solar power systems.

Net sellingInsider Activity

Over the past six months, First Solar, Inc. insiders filed 15 SEC Form 4 transactions — 6 sales and 9 purchases. On net that is roughly 9K shares disposed (about $3.1M), a signal worth weighing alongside the fundamentals.

Quarterly Financial Performance: First Solar, Inc.

Revenue for First Solar, Inc. came in at $1.04B during Q1 2026, a 37.9% contraction versus the preceding quarter. The company recorded net income of $346.6M, with diluted EPS of $3.22. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Energy. Across the four most recent quarters, FSLR averaged $3.87 in diluted EPS.

FSLR Valuation & Market Position

With a $24.13B market cap, First Solar, Inc. sits in the large-cap segment of the market. Relative to its peer group, FSLR's quantitative score of 92/100 is above the peer average of 65/100.

ROE 18%Key Financial Metrics

Return on equity for First Solar, Inc. stands at 18.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 12.5%, showing how much profit it generates from its asset base. FSLR trades at a trailing price-to-earnings ratio of 16.43, roughly in line with the Energy sector average of ~17x. Its free cash flow yield is 6.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.56 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.2%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 8/9Financial Health

First Solar, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 6.07 places it in the safe zone, indicating low near-term bankruptcy risk.

3/8 beatsEarnings Track Record

First Solar, Inc. has missed Wall Street's EPS estimate in 4 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 1.5% below estimates on average.

FY2026 estForward Outlook

Wall Street analysts project First Solar, Inc. revenue of about $5.08B for fiscal 2026, with EPS near $17.70. The estimate reflects 22 contributing analysts.

Company Profile

First Solar, Inc. operates in the Solar industry within the Energy sector. It is headquartered in Phoenix, US. The company is led by CEO Mark R. Widmar. FSLR has traded publicly since 2006.

FSLR Financials

FSLR Latest News

FSLR Analyst Consensus

FSLR MoonshotScore

Latest First Solar, Inc. Analysis

Related Investment Themes

What Investors Ask About First Solar, Inc. (FSLR) — Energy

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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