| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 19.85 | 6 |
| Intrinsic value (DCF) | 10.53 | -44 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 4.73 | -75 |
Trina Solar Co., Ltd. stands as a globally integrated leader in the solar energy sector, operating across the entire photovoltaic value chain from silicon ingots to complete solar power systems. Founded in 1997 and headquartered in Changzhou, China, the company designs, manufactures, and sells high-efficiency monocrystalline and multicrystalline PV modules for residential, commercial, industrial, and utility-scale applications. As a vertically integrated manufacturer, Trina Solar controls production of ingots, wafers, and cells, ensuring quality control and cost efficiency throughout its supply chain. The company has expanded beyond manufacturing to become a comprehensive solar solutions provider, offering project development, construction, and operation services for solar power plants globally. With operations spanning China, Europe, the United States, and Asia Pacific regions, Trina Solar serves diverse customers including power plant developers, distributors, system integrators, and grid operators. The company's position in the renewable energy transition makes it a key player in global decarbonization efforts, leveraging China's manufacturing scale while competing internationally through technological innovation and global market penetration.
Trina Solar presents a complex investment case characterized by strong revenue generation but concerning profitability metrics. With CNY 80.3 billion in revenue, the company demonstrates significant market scale and operational capacity in the growing solar industry. However, the negative net income of CNY -3.4 billion and diluted EPS of -1.59 raise red flags about current profitability despite top-line strength. The company maintains substantial cash reserves of CNY 22.5 billion, providing liquidity cushion, though high total debt of CNY 39.4 billion indicates significant leverage. Positive operating cash flow of CNY 8.0 billion suggests core operations are cash-generative, but substantial capital expenditures of CNY -13.3 billion reflect aggressive investment in capacity expansion. The modest dividend yield of CNY 0.63 per share provides some income component, while the beta of 0.549 suggests lower volatility than the broader market. Investors must weigh the company's market leadership and renewable energy tailwinds against margin pressures, intense competition, and cyclical industry dynamics.
Trina Solar operates in the highly competitive global solar manufacturing sector, where scale, technological innovation, and cost efficiency determine competitive positioning. As a vertically integrated player, Trina's competitive advantage stems from controlling the entire production process from silicon materials to finished modules, providing cost control and supply chain stability. The company's global presence across key solar markets including China, Europe, and the US diversifies its revenue streams and reduces regional dependency risks. However, Trina faces intense price competition from both larger Chinese peers and specialized manufacturers, particularly in commodity-like module segments. The company's technological differentiation through products like high-efficiency monocrystalline modules and emerging technologies like n-type cells provides some pricing power, though rapid technological obsolescence requires continuous R&D investment. Trina's expansion into downstream project development creates additional revenue streams and helps absorb manufacturing capacity, though this requires significant capital and exposes the company to project development risks. The solar industry's cyclical nature, driven by policy changes, raw material price volatility, and global trade tensions, presents ongoing challenges to sustainable profitability. Trina's scale provides some insulation, but the company must navigate oversupply conditions and fluctuating demand patterns while maintaining technological leadership to preserve its market position against both established giants and emerging specialized competitors.