Best Growth
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
Growth Stock Analysis As of 02 December 2023
NYSE: FSLR (First Solar, Inc.)
- First Solar, Inc. offers solar energy solutions utilizing photovoltaic (PV) technology across the United States, Japan, France, Canada, India, Australia, and globally.
- The global solar power system market is valued at $113.22 billion with a forecast CAGR of 11%, presenting growth opportunities for solar panel manufacturers.
- The company designs, produces, and sells solar modules using cadmium telluride technology to convert sunlight into electricity. Its clientele includes system developers and operators, utilities and other system owners.
- First Solar’s emphasis on thin film tandem technology, coupled with superior execution, enhances efficiency and reduces costs.
- The company’s profitability and growth potential are further fueled by increasing demand for solar panels and government incentives.
- 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.
- Top Shareholdings of First Solar, Inc. (FSLR):
| Holder | Shares | Date Reported | % Out | Value |
|---|---|---|---|---|
| Blackrock Inc. | 13,303,172 | Sep 29, 2023 | 12.45% | 2,132,365,350 |
| Vanguard Group Inc | 12,040,031 | Sep 29, 2023 | 11.27% | 1,929,896,488 |
| JP Morgan Chase & Company | 6,821,493 | Sep 29, 2023 | 6.38% | 1,093,417,067 |
| State Street Corporation | 4,540,328 | Sep 29, 2023 | 4.25% | 727,769,144 |
| Invesco Ltd. | 3,232,939 | Sep 29, 2023 | 3.03% | 518,207,770 |
| Capital Research Global Investors | 2,942,869 | Sep 29, 2023 | 2.75% | 471,712,452 |
| FMR, LLC | 2,481,983 | Sep 29, 2023 | 2.32% | 397,837,038 |
| Geode Capital Management, LLC | 2,386,440 | Sep 29, 2023 | 2.23% | 382,522,451 |
| Wellington Management Group, LLP | 2,283,705 | Sep 29, 2023 | 2.14% | 366,055,059 |
| Schroder Investment Management Group | 2,102,959 | Sep 29, 2023 | 1.97% | 337,083,283 |
What we think are PROs of First Solar, Inc. (FSLR):
- The company has continued to wax strong, increasing its manufacturing capacities, from a lowly nameplate capacity of 210 MW in 2007 to an expected nameplate capacity of 25 gigawatts by 2026.
- Certainly, there is evident double-digit growth in demand within the solar energy sector.
- The company is experiencing robust demand for its latest thin-film solar module technology, known as “Series 7.”
- Increasing production capacity and elevated pricing contribute to strengthening margins, potentially driving an upward movement in share prices.
- Government subsidies and the demand for renewable energy are expected to continue, providing opportunities for FSLR.
What we think the RISKs are in First Solar, Inc. (FSLR):
- FSLR is currently trading at 30x P/E non-GAAP TTM, higher than the sector average.
- The sector exhibits energy inertia rather than swift transition, and First Solar’s growth has been notably poor.
- Caution is warranted, as investors may be acquiring shares primarily on future expectations, especially in the wake of disappointing quarter results.
FUNDAMENTALS:
Market Cap. = 17.13B
Beta = 1.42
P/E Ratio = 36.26
52 week Range = 129.22 – 232
Revenue = 3.16B
EPS = 4.42
- Technicals:
– There is a formation of Bullish Engulfing candle on the daily charts and it will start a new bullish trend from current levels.
– Taking support at the last breakout levels it will trying to bounce again to higher levels.
– Breaking out from the 200 days Exponential Moving Average.
– RSI (Weekly) recovering from lower levels, currently at 45 levels and making bullish divergence.
– Bouncing from Lower support, it may first bounce up to 190 into one flow.
– It will try to reach towards it upper resistance of 225 levels.
Entry: 160
Target: 225
Stoploss: 148
Our Final Thought: FLSR holds the potential for significant growth in the coming years, buoyed by tax benefits and the increasing demand for solar energy. Expanding its capacity to meet rising demand allows the company to achieve economies of scale, reflected in growing margins, declining costs, and increased profitability and cash flows. The company’s advanced technology and effective execution enhance efficiency and reduce costs. Ongoing research and development in thin film tandem technology hold the potential for groundbreaking improvements in solar energy conversion yields. The current stock valuation stands at a P/E non-GAAP Forward of 16.7x and a PEG non-GAAP Forward of 0.44, signaling an appealing multiple considering the ongoing growth trajectory. It is also available at last breakout levels so we can enter for a long term bet.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
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