In addition, clouds seemed to hang heavy over its cash flow statement. These factors, combined with the fact that management provided a less-than-shining forecast for 2022, contributed to traders' decisions to sell the stock lower. As of 10:42 a.m. ET Wednesday, shares of First Solar were down by 12.6%.
Is First Solar stock headed for significant downside?
Up more than 3x since March, we believe First Solar stock (NASDAQ: FSLR) could see significant downside. First Solar stock is up 72% so far this year. It traded at $58 in February 2020 – just before the outbreak of coronavirus – and is currently 65% above that level, as well.
Is First Solar stock back in growth mode?
First Solar is back in growth mode, and that could be great for the stock. Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium First Solar has shed its non-core businesses and focused on what it does best -- solar panel manufacturing.
Is First Solar stock overvalued at 48 times earnings?
Whether or not profit margins collapse as the analyst predicts, First Solar stock already looks extremely overvalued at a share price of roughly 48 times trailing earnings. Moreover, free cash flow (FCF) at the company still lags reported net income badly.
What happened to first solar?
Over the past three years, First Solar has sold most of its project development business, its operating and maintenance business, and even 8point3 Energy. What's left is a leading solar panel manufacturer, and that's about it.
Why did First Solar drop?
Shares of First Solar dropped more than 16% during extended trading Tuesday after the company reported missing revenue expectations during the fourth quarter and issued weak full-year guidance. The company expects full-year revenue between $2.4 billion and $2.6 billion, while Wall Street was calling for $2.76 billion.
Why solar stocks are dropping?
Solar stocks fell sharply on Tuesday after California proposed new rules that would make it more expensive for homeowners to generate power from panels on their roofs. But one analyst thinks that the selloff was too steep and that the stocks of solar developers are now discounting a future that seems too bleak.
What happened to First Solar?
What happened. Shares of First Solar (FSLR 0.37%) sank 10.1% in January, according to data from S&P Global Market Intelligence. The stock market suffered steep sell-offs last month, and investors took a more cautious approach to valuing renewable energy companies.
Is First Solar still in business?
The company went public in 2006, trading on the NASDAQ. Its current chief executive is Mark Widmar, who succeeded the previous CEO James Hughes July 1, 2016. First Solar is based in Tempe, Arizona....First Solar.TypePublicIndustryPhotovoltaicsFounded1999 (as First Solar Holdings, LLC)HeadquartersTempe, Arizona , U.S.10 more rows
Is First Solar a Good Investment?
Solar energy solutions provider First Solar (NASDAQ: FSLR) stock has been in a steady sell-off since peaking at highs of $123.13 in November 2021. While shares initially ramped up due to rising oil prices, they have decoupled as shares moved inversely.
Is First Solar profitable?
First Solar reported a profit of $1.23 a share, beating estimates for $1.06 a share, though sales of $970.3 million missed estimates for $917.06 million. First Solar's guidance, however, fell far short of the mark. It forecast revenue of $2.4 billion to $2.6 billion in 2022, missing analyst estimates for $2.76 billion.
Is First Solar a legit company?
Is First Solar a good company to work for? First Solar has an overall rating of 3.9 out of 5, based on over 524 reviews left anonymously by employees. 76% of employees would recommend working at First Solar to a friend and 62% have a positive outlook for the business.
Is First Solar legit?
About First Solar Solar is a reliable, world-class partner for clean, renewable energy generation.
Is First Solar competitive?
The Innovative Trends of First Solar Right from developing cadmium-telluride (CdTe) based panels to developing advanced grid integration, plant control, forecasting and energy scheduling capabilities, the company has been able to sustain and succeed in the highly competitive solar energy market for decades.
Is First Solar ethical?
Responsible Manufacturing All First Solar manufacturing sites are certified to globally recognized standards: ISO 14001 for Environmental Management, ISO 9001 for Quality Management, and ISO 45001 for Occupational Health and Safety.
Why First Solar is the best?
Leading the Way in Sustainability First Solar knows that clean affordable solar electricity is an essential part of the worldwide energy mix. That's why First Solar leads the way with the lowest carbon footprint, lowest water usage and fastest energy payback of any PV technology.
What happened
Investors in thin-film solar specialist and solar farm builder First Solar ( FSLR 2.38% ) have had mixed news so far this week. Yesterday, StreetInsider.com reported that JMP Securities raised its price target on the stock to $105. But this morning, Goldman Sachs downgraded First Solar all the way from buy to sell.
Now what
Not only did First Solar stock drop nearly 10% today, but Goldman Sachs is predicting the stock has another 12% to fall before all the selling is done, and I cannot say it's wrong about that.
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How much did First Solar stock rise in 2020?
Our belief stems from the fact that First Solar, a manufacturer of solar panels and provider of end-to-end solar system services, saw its stock rise more than 2.5x from the low seen in March 2020.
How much solar energy will be produced in FY 20?
However, in FY ’20, First Solar clocked in 6.1 Giga watts produced, up from 5.7 GW in 2019.
How much is solar in 2020?
First Solar’s full-year 2020 revenues came in at $2.7 billion, down from $3.1 billion in FY 2019. First Solar’s new efficient Series 6 range is cheaper to manufacture, and this helped improve gross margins to 25.1% from 17.9% in FY 2019. Further, FY 2019 saw a $363 million litigation loss, to settle a long-running shareholder lawsuit. With a meager $6 million litigation loss in FY ’20 and other operating expenses also somewhat in check, First Solar’s operating margins surged to 11.7% from -5.3% in 2019.
Will solar modules increase in 2020?
The global spread of Coronavirus and the resulting lockdowns hampered solar module demand in the first half of 2020. However, the switch to solar as a cheaper source of energy has risen since, but this has not translated into revenue growth for First Solar.
First Solar is back in growth mode, and that could be great for the stock
Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium
Key Points
First Solar has shed its non-core businesses and focused on what it does best -- solar panel manufacturing.
The evolution of First Solar
A lot has happened at First Solar over the past decade. The company was one of the industry's leaders in solar panel manufacturing going back nearly two decades, but in the past 10 years, it has seen increased competition from silicon-based solar panels, primarily made in China.
First Solar's steady-as-it-goes business
Despite all of the turbulence, First Solar's revenue has been fairly steady over the past five years. At the same time, net income has been rising steadily as new manufacturing processes have come online, driving higher margins. At the same time, the simplified business model I mentioned has led to lower operating expenses.
How First Solar becomes a growth stock
First Solar has recently announced two major manufacturing expansions that will about double its capacity. The first is a $680 million investment in the U.S. that will add 3.0 gigawatts (GW) of capacity by the end of 2023 and 3.3 GW in 2025.
