FSLR First Solar Inc

First Solar manufactures advanced thin-film photovoltaic solar panels and develops utility-scale solar power projects primarily in the United States. Sector: Technology.

First Solar Inc (FSLR) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

On a capital return basis, ROIC is 18.64%, WACC is 14.41%, and the economic spread is 4.23%. On balance, the economic spread is positive but compressed — adequate for value preservation, less convincing for aggressive compounding. Supporting metrics show ROE at 18.48% and ROA at 10.88%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

On an earnings multiple basis, trailing P/E of 17.11, forward P/E of 12.74, PEG of 0.54. The gap between trailing and forward multiples is not especially wide, suggesting the market is pricing a steadier earnings path rather than a sharp near-term re-rating. At this PEG level, growth-adjusted valuation looks attractive — the market appears to be paying a reasonable price for the earnings growth embedded in estimates. A current ratio of 2.52 across the company reflects strong short-term liquidity. Combining multiples and liquidity, the company appears adequately priced for its current earnings trajectory, with balance sheet health providing a degree of downside resilience.

Stripping to unit economics, gross margin sits at 44.02%, operating margin at 33.65%, and free cash flow margin at 27.89%. Gross margins are healthy, suggesting solid pricing power across the company. At this operating margin level, the company demonstrates strong operational discipline and meaningful earnings leverage. The company's free cash flow margin is exceptional, pointing to capital-light businesses with strong reinvestment optionality. Read as a whole, the margin picture suggests a business with strengths in parts but no clear margin dominance end-to-end.

Revenue trends and analyst expectations together suggest: TTM revenue growth of 24.09% indicating strong organic momentum at the company level, while the estimated 12-month price change of 14.75%, where consensus targets suggest reasonable upside rather than a step-change rerating. At 34.3%, the projected 12-month EPS growth rate is strong enough to be a primary driver of the forward investment case rather than a peripheral supporting detail. There is always distance between what is reported and what is priced; the question of whether that distance is closing or widening is what makes the setup interesting. In either direction, the fundamental driver of returns will be whether the company can sustain the trajectory that is already being priced. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The aggregate picture across capital efficiency, valuation, growth, and cash generation builds a compelling case.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.