📊 FSLR Key Takeaways
Is First Solar, Inc.. (FSLR) a Good Investment?
First Solar demonstrates exceptional operational excellence with 24.1% revenue growth, industry-leading profitability margins (40.6% gross, 30.6% operating, 29.3% net), and strong cash generation (22.7% FCF margin). The company maintains fortress-like financial health with minimal leverage (0.03x debt/equity), robust liquidity (2.67x current ratio), and outstanding interest coverage (173.4x), supporting sustainable high-quality growth.
First Solar shows high-quality fundamental performance with strong revenue growth, exceptional margins, and substantial free cash flow generation. Its balance sheet is very strong, supported by large cash reserves, minimal leverage, and ample liquidity, which gives it flexibility to fund expansion while remaining resilient through industry cycles. Growth quality appears solid because profitability and cash generation are scaling alongside revenue rather than being driven by weak or highly leveraged expansion.
Why Buy First Solar, Inc.. Stock? FSLR Key Strengths
- Outstanding revenue growth of 24.1% YoY with net income growth of 18.3%, demonstrating strong market demand and operational scaling
- Best-in-class profitability margins: 40.6% gross margin, 30.6% operating margin, and 29.3% net margin indicate significant competitive advantages and pricing power
- Exceptional financial fortress: minimal debt (0.03x debt/equity), $2.8B cash reserves, and 173.4x interest coverage provide tremendous financial flexibility
- High-quality earnings conversion with 22.7% FCF margin and $1.2B free cash flow, exceeding net income conversion rate
- Strong ROE (16.0%) and ROA (11.5%) indicate efficient capital deployment and asset utilization
- Solid balance sheet with $9.5B equity and low financial risk, supporting investment in growth initiatives
- Strong profitability profile with 40.6% gross margin, 30.6% operating margin, and 29.3% net margin
- Excellent financial health driven by $2.80B cash, very low long-term debt, 2.67x current ratio, and 0.03x debt-to-equity
- High-quality cash generation with $2.06B operating cash flow and $1.19B free cash flow despite heavy capital investment
FSLR Stock Risks: First Solar, Inc.. Investment Risks
- Cyclical industry exposure: solar sector highly dependent on policy incentives, subsidies, and government renewable energy mandates which could change
- Capital intensity requirement: $869.9M annual CapEx (16.7% of revenue) suggests ongoing significant investment needs to maintain growth trajectory
- Intense competitive pressure from low-cost manufacturers and new entrants could erode margins despite current strong positioning
- Supply chain vulnerabilities and commodity input cost exposure could pressure gross margins in adverse economic conditions
- Geographic concentration risk with potential dependence on specific markets where government policy shifts could impact demand
- Capital-intensive expansion raises execution risk and could pressure free cash flow if capex remains elevated
- Earnings and margins may be sensitive to solar demand cycles, manufacturing utilization, and pricing conditions
- Growth may depend partly on policy support and incentive structures, which can affect long-term profitability stability
Key Metrics to Watch
- Gross margin trend - monitor for any compression from competitive pressure or input cost inflation
- Revenue growth sustainability - track whether 24.1% growth can be maintained or moderates
- Free cash flow conversion and capital efficiency - ensure FCF margins remain above 20% as company scales
- Debt levels and leverage ratios - monitor if debt/equity rises significantly above current 0.03x level
- Return on invested capital - ensure returns exceed cost of capital as CapEx intensity continues
- Operating cash flow to net income ratio - verify continued quality of earnings
- Free cash flow conversion as capital expenditures remain high
- Operating margin and revenue growth consistency over the next several reporting periods
First Solar, Inc.. (FSLR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 22.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.67x current ratio provides a solid financial cushion.
FSLR Profit Margin, ROE & Profitability Analysis
FSLR vs Technology Sector: How First Solar, Inc.. Compares
How First Solar, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is First Solar, Inc.. Stock Overvalued? FSLR Valuation Analysis 2026
Based on fundamental analysis, First Solar, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
First Solar, Inc.. Balance Sheet: FSLR Debt, Cash & Liquidity
FSLR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: First Solar, Inc..'s revenue has grown significantly by 70% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.74 reflects profitable operations.
FSLR Revenue Growth, EPS Growth & YoY Performance
FSLR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $887.7M | $313.0M | $2.91 |
| Q2 2025 | $1.0B | $341.9M | $3.18 |
| Q1 2025 | $794.1M | $209.5M | $1.95 |
| Q3 2024 | $801.1M | $268.4M | $2.50 |
| Q2 2024 | $810.7M | $170.6M | $1.59 |
| Q1 2024 | $548.3M | $42.6M | $0.40 |
| Q3 2023 | $628.9M | -$36.6M | $-0.34 |
| Q2 2023 | $621.0M | $12.6M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
First Solar, Inc.. Dividends, Buybacks & Capital Allocation
FSLR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for First Solar, Inc.. (CIK: 0001274494)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FSLR
What is the AI rating for FSLR?
First Solar, Inc.. (FSLR) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FSLR's key strengths?
Claude: Outstanding revenue growth of 24.1% YoY with net income growth of 18.3%, demonstrating strong market demand and operational scaling. Best-in-class profitability margins: 40.6% gross margin, 30.6% operating margin, and 29.3% net margin indicate significant competitive advantages and pricing power. ChatGPT: Strong profitability profile with 40.6% gross margin, 30.6% operating margin, and 29.3% net margin. Excellent financial health driven by $2.80B cash, very low long-term debt, 2.67x current ratio, and 0.03x debt-to-equity.
What are the risks of investing in FSLR?
Claude: Cyclical industry exposure: solar sector highly dependent on policy incentives, subsidies, and government renewable energy mandates which could change. Capital intensity requirement: $869.9M annual CapEx (16.7% of revenue) suggests ongoing significant investment needs to maintain growth trajectory. ChatGPT: Capital-intensive expansion raises execution risk and could pressure free cash flow if capex remains elevated. Earnings and margins may be sensitive to solar demand cycles, manufacturing utilization, and pricing conditions.
What is FSLR's revenue and growth?
First Solar, Inc.. reported revenue of $5.2B.
Does FSLR pay dividends?
First Solar, Inc.. does not currently pay dividends.
Where can I find FSLR SEC filings?
Official SEC filings for First Solar, Inc.. (CIK: 0001274494) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FSLR's EPS?
First Solar, Inc.. has a diluted EPS of $14.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FSLR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, First Solar, Inc.. has a BUY rating with 88% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FSLR stock overvalued or undervalued?
Valuation metrics for FSLR: ROE of 16.0% (sector avg: 22%), net margin of 29.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy FSLR stock in 2026?
Our dual AI analysis gives First Solar, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FSLR's free cash flow?
First Solar, Inc..'s operating cash flow is $2.1B, with capital expenditures of $869.9M. FCF margin is 22.7%.
How does FSLR compare to other Technology stocks?
Vs Technology sector averages: Net margin 29.3% (avg: 18%), ROE 16.0% (avg: 22%), current ratio 2.67 (avg: 2.5).