Valuation method | Value, $ | Upside, % |
---|---|---|
Artificial intelligence (AI) | 83.47 | -55 |
Intrinsic value (DCF) | 8.48 | -95 |
Graham-Dodd Method | 134.65 | -27 |
Graham Formula | 407.66 | 120 |
First Solar, Inc. (NASDAQ: FSLR) is a leading global provider of photovoltaic (PV) solar energy solutions, specializing in the design, manufacture, and sale of cadmium telluride (CdTe) thin-film solar modules. Headquartered in Tempe, Arizona, First Solar serves a diverse customer base, including utilities, independent power producers, commercial and industrial firms, and system developers across the U.S., Japan, France, Canada, India, and Australia. Founded in 1999, the company has established itself as a key player in the renewable energy sector, leveraging its proprietary thin-film technology to deliver high-efficiency, low-cost solar solutions. First Solar’s vertically integrated manufacturing process and focus on sustainability position it as a competitive force in the rapidly growing solar energy market. With increasing global demand for clean energy, First Solar is well-positioned to capitalize on favorable regulatory trends and the transition toward decarbonization.
First Solar presents a compelling investment opportunity due to its strong market position in the solar energy sector, differentiated thin-film technology, and robust financial performance. The company reported $4.2 billion in revenue and $1.3 billion in net income for the latest fiscal year, with diluted EPS of $12.02. Its operating cash flow of $1.2 billion and solid balance sheet ($1.6 billion in cash vs. $718.8 million in debt) underscore financial stability. However, risks include exposure to regulatory changes, competition from Chinese solar manufacturers, and capital-intensive operations (evidenced by $1.5 billion in capex). The lack of dividends may deter income-focused investors, but growth-oriented investors may find value in its technological edge and expanding global footprint.
First Solar’s primary competitive advantage lies in its proprietary cadmium telluride (CdTe) thin-film solar technology, which offers cost and performance benefits over traditional crystalline silicon (c-Si) panels, particularly in hot and humid climates. The company’s vertically integrated manufacturing model enhances supply chain control and reduces reliance on external suppliers, a critical differentiator amid global semiconductor shortages. First Solar also benefits from strong U.S. policy support, including the Inflation Reduction Act (IRA), which incentivizes domestic solar production. However, competition from low-cost Chinese manufacturers like JinkoSolar and LONGi remains intense, pressuring margins. Additionally, while First Solar’s thin-film modules have efficiency trade-offs compared to high-end c-Si panels, their lower degradation rates and superior temperature coefficients make them attractive for utility-scale projects. The company’s focus on sustainability (including module recycling programs) further strengthens its ESG appeal, a growing priority for investors and customers alike.