First Solar Has Gained 38% YTD. More Gains to Come?
First Solar and clean energy stocks have been 🔥 in the first half of 2020.
First Solar ($FSLR) is up 38% YTD, vs. 8% for the S&P 500 with more gains likely if the stock can clear one key hurdle (see chart below).
Clean energy stocks are on a tear:
- Invesco WilderHill Clean Energy ETF ($PBW): +58% YTD.
- iShares Global Clean Energy ETF ($ICLN): +40% YTD.
What they do:
They are a leading global provider of photovoltaic (PV) solar panels. They operate in three business segments:
- PV Solar Modules-Panels you see on houses and buildings.
- Utility-Scale Power Plants-They develop and construct power-grid systems for utility companies. They want to curb reliance on fossil fuels, reduce the risk of fuel-price volatility, and save costs.
- O&M Services-They provide system owners with ongoing operations and maintenance programs through its global operations center and O&M associates.
For more details, start on page 3 of their annual report.
What's its chart telling us?
- Price is testing the $80-$100 supply (resistance) zone. A move above $100 and $160 is possible, a 60% gain from $100.
| KEY FACTS | |
|---|---|
| Ticker | $FSLR |
| Headquarters | Tempe, AZ |
| # of Employees | 6,400 (as of 2020) |
| Market Cap. | $8.3 billion |
| TTM Revenue | $3.1 billion |
| Date Founded | 1999 |
| IPO Date | November 17, 2006 |
| Short Interest | 9.8% |
| 52-Week Range | $30-$78 |
| KEY FINANCIALS | TTM, $ in millions |
|---|---|
| Revenue | $3,120 |
| Gross Margin | 22.4% |
| EBITDA | $565 |
| EBITDA Margin | 18.1% |
| Net Income | $98.8 |
| Net Income Margin | 3.2% |
| Free Cash Flow | $(51) |
| Free Cash Flow Margin | (1.6)% |
| RETURNS | TTM |
|---|---|
| Return on Assets | 3.0% |
| Return on Invested Capital (ROIC) | 3.7% |
| Return on Equity | 1.9% |
| VALUATION METRICS | |
|---|---|
| Forward Price/Revenues | 2.8x |
| Trailing Price/Revenues | 2.6x |
| Forward Price/Earnings | 22.5x |
| Trailing Price/Earnings | 82.7x |
Additional information:
Links:
Green-Energy Shares Rise Along With Joe Biden’s Polling
Democratic presidential nominee has pledged a variety of clean-energy policies that could benefit related industries
The Wall Street Journal