Declining Stock and Solid Fundamentals: Is The Market Wrong About First Solar, Inc. (NASDAQ:FSLR)?

Simply Wall St.12-18

With its stock down 22% over the past three months, it is easy to disregard First Solar (NASDAQ:FSLR). However, stock prices are usually driven by a company’s financial performance over the long term,...

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(NASDAQ:FSLR)?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-18 19:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/declining-stock-solid-fundamentals-market-112724334.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>With its stock down 22% over the past three months, it is easy to disregard First Solar (NASDAQ:FSLR). However, stock prices are usually driven by a company’s financial performance over the long term,...</p>\n\n<a href=\"https://finance.yahoo.com/news/declining-stock-solid-fundamentals-market-112724334.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".IXIC","symbol_name":"NASDAQ Composite","start_time":0,"source_url":"https://finance.yahoo.com/news/declining-stock-solid-fundamentals-market-112724334.html","article_id":"2492590772","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ZsOBsVGe6i0Fcc3OPjFeXw--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/bcd5ba422b56aeb135e06451707129bf"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492590772","pubTimestamp":1734521244,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"With its stock down 22% over the past three months, it is easy to disregard First Solar . However, stock prices are usually driven by a company’s financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study First Solar's  ROE in this article.Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.Return on Equity = Net Profit  ÷ Shareholders' Equity. So, based on the above formula, the ROE for First Solar is:. A Side By Side comparison of First Solar's Earnings Growth And 16% ROE. As a next step, we compared First Solar's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 21%.First Solar doesn't pay any regular dividends currently which essentially means that it has been reinvesting a","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{".IXIC":"NASDAQ Composite","TSYW.SI":"TESLA 3xLongSG261006","LU2322448957.HKD":"ALLIANZ GLOBAL INTELLIGENT CITIES INCOME \"AMG\" (HKD) INC","LU1992135472.HKD":"ALLIANZ GLOBAL INTELLIGENT CITIES \"AT\" (HKD) ACC","LU0124384867.USD":"贝莱德新能源基金A2","USAW.SI":"AMZN 3xLongSG261006","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","QLD":"纳指两倍做多ETF","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","BK4141":"半导体产品","LU0323239441.USD":"HSBC GIF GLOBAL EQUITY CLIMATE CHANGE \"AC\" ACC","LU0154245673.USD":"BNP PARIBAS US MID CAP \"C\" (USD) INC","SQQQ":"纳指三倍做空ETF","LU1983299162.USD":"SCHRODER ISF GLOBAL ENERGY TRANSITION \"A\" (USD) ACC","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","LU0823434583.USD":"BNP PARIBAS US GROWTH \"C\" (USD) ACC","PSQ":"纳指反向ETF","LU2272731865.HKD":"ALLIANZ GLOBAL INTELLIGENT CITIES INCOME \"AM\" (HKD) INC","NDAQ":"纳斯达克OMX交易所","LU0823434740.USD":"BNP PARIBAS US GROWTH \"C\" (USD) INC","BK4596":"哈里斯概念","USJW.SI":"ALPHAB 3xLongSG261006","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4112":"金融交易所和数据","QID":"纳指两倍做空ETF","LU0323240290.USD":"HSBC GIF GLOBAL EQUITY CLIMATE CHANGE \"AD\" INC","TQQQ":"纳指三倍做多ETF","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU2211814178.USD":"ALLIANZ CLEAN PLANET \"AT\" (USD) ACC","NVIW.SI":"NVDA 3xLongSG261006","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","LU0823421333.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) ACC","IE00B3CCJ633.GBP":"GUINNESS SUSTAINABLE ENERGY \"C\" (GBP) ACC","LU0823414551.USD":"BNP PARIBAS ENERGY TRANSITION \"C\" (USD) INC","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","LU2473716301.USD":"ALLIANZ GLOBAL INTELLIGENT CITIES INCOME \"AMF\" (USD) INC","LU0823421416.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) INC","LU1992135399.USD":"Allianz Global Intelligent Cities AT Acc USD","IE00B2PGVK34.USD":"GUINNESS SUSTAINABLE ENERGY \"C\" (USD) ACC","LU2272731782.SGD":"Allianz Global Intelligent Cities AM Dis H2-SGD","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU0823414478.USD":"法巴经典能源转换基金","IE00BGHQF417.EUR":"GUINNESS SUSTAINABLE ENERGY \"C\" (EUR) ACC","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU2272731600.USD":"Allianz Global Intelligent Cities AM Dis USD","FSLR":"第一太阳能"},"translate_title":"下跌的股票和坚实的基本面：市场对First Solar公司（纳斯达克：FSLR）的看法是错误的吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1,"FSLR":1,"NDAQ":1,"NVIW.SI":0.6,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"TQQQ":0.6,"TSYW.SI":0.6,"USAW.SI":0.6,"USJW.SI":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"With its stock down 22% over the past three months, it is easy to disregard First Solar (NASDAQ:FSLR). However, stock prices are usually driven by a company’s financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study First Solar's  ROE in this article. \n Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. \n See our latest analysis for First Solar \n How To Calculate Return On Equity? \n ROE can be calculated by using the formula: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for First Solar is:\n16% = US$1.2b ÷ US$7.6b (Based on the trailing twelve months to September 2024).\n The 'return' refers to a company's earnings over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.16. \n What Is The Relationship Between ROE And Earnings Growth? \n Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or \"retains\", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes. \n A Side By Side comparison of First Solar's Earnings Growth And 16% ROE \n To start with, First Solar's ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 11%. Probably as a result of this, First Solar was able to see an impressive net income growth of 43% over the last five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place. \n As a next step, we compared First Solar's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 21%. \n\n\n\n  NasdaqGS:FSLR Past Earnings Growth December 18th 2024\n \n\n Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if First Solar is trading on a high P/E or a low P/E, relative to its industry. \n Is First Solar Making Efficient Use Of Its Profits? \n First Solar doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the high earnings growth number that we discussed above. \n Conclusion \n On the whole, we feel that First Solar's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492590772"}