First Solar’s stock price has taken a beating over the past six months, shedding 45.1% of its value and falling to $131.85 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
Following the drawdown, is this a buying opportunity for FSLR? Find out in our full research report, it’s free.
Headquartered in Arizona, First Solar (NASDAQ:FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
We at StockStory place the most emphasis on long-term growth, but within industrials, a stretched historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. First Solar’s annualized revenue growth of 26.7% over the last two years is above its five-year trend, suggesting its demand recently accelerated.
Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
First Solar’s full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it’s at an inflection point.
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, First Solar’s margin expanded by 6.7 percentage points over the last five years. First Solar’s free cash flow margin for the trailing 12 months was negative 7.3%, and continued increases could help it achieve long-term cash profitability.
These are just a few reasons why First Solar is one of the best industrials companies out there. After the recent drawdown, the stock trades at 6.3× forward price-to-earnings (or $131.85 per share). Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.
Put yourself in the driver’s seat by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.