First Solar Has Gained 38% YTD. More Gains to Come?
First Solar and clean energy stocks have been π₯ 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 |