How Does This Solar Maker Operate?
First Solar makes solar photovoltaic technology and sells it into the solar power market. The company’s business is tied to manufacturing output and the delivery of product into customer projects. As a public U.S. company, it operates at meaningful scale, with a market value around USD 26.8 billion. Its economics are shaped by how efficiently it turns a capital-intensive asset base into durable cash returns.
Are Profits Holding Up With Growth?
FundamentalsIn its latest annual results, reported in U.S. dollars, First Solar produced about USD 5.2 billion of revenue with EBIT of roughly USD 1.6 billion and net income of about USD 1.5 billion. The balance sheet shows around USD 2.8 billion of cash alongside USD 0.5 billion of total debt, keeping funding pressure low even as operations scale.
Capital intensity still shows up in the cash profile: depreciation and amortization was about USD 0.5 billion while capital expenditure reached nearly USD 0.9 billion. After those spending needs, the company’s cash-flow proxy was about USD 1.2 billion, with revenue up 24.1% year over year. Profitability remained elevated over the same trailing period, with a 41.74% gross margin and 31.76% operating margin supporting the 18.01% ROE.
Is The Market Paying A Premium?
DCF / MultiplesAt USD 249.24, the stock is priced above the central fair value estimate of USD 190.65, sitting closer to the upper-end estimate of USD 254.76 than the lower-end estimate of USD 132.44. Headline multiples stand at 16.65x trailing earnings and 11.37x EV/EBITDA, consistent with a market price near the upper end of the discounted cash flow range.
Returns Must Stay Strong
TakeawayThe balance sheet looks built for endurance, not survival funding. Returns have been strong, and they need to persist. Capex is heavy, so cash conversion must stay disciplined. If margins fade, today’s pricing has less cushion. Net cash helps, but it cannot replace operating performance.