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First Solar Has Gained 38% YTD. More Gains to Come?

First Solar and clean energy stocks have been 🔥 in the first half of 2020.

Caleb Dismuke

Last updated: 8/25/2020.


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:


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