FSLR Stock Analysis — First Solar
Sector: Energy
AI Verdict
First Solar trades at 9.7x next year's earnings while analysts expect 42.7% EPS growth, which is cheap for the growth you're getting if their U.S.-centric supply chain moat holds up.
Competitive Moat
First Solar manufactures thin-film solar panels using proprietary cadmium telluride technology, which is less reliant on polysilicon supply chains and offers cost and efficiency advantages in utility-scale projects. Their U.S.-based manufacturing and trade policy tailwinds provide a defensible position against lower-cost Chinese competitors.
Summary
First Solar's forward P/E of 9.7x and 42.7% expected EPS growth make it a standout among clean energy stocks.
Where It Stands
With a 12.81% one-year return, an RSI of 59.6 (neutral), and a forward P/E of 9.7x versus the energy sector median of 12x, FSLR trades at a discount despite rapid earnings growth.
Key Metrics
- RSI: 59.6 — Neutral
- Trailing P/E: 13.9x
- Forward P/E: 9.7x
- PEG Ratio: 0.33
- Earnings Growth: +0.4%
- Revenue Growth: +0.2%
- Market Cap: $24.2B
- 1-Year Return: 12.81%
- 52-Week High: $320.95
- 52-Week Low: $176.47
Analyst Consensus
32 Buy · 14 Hold · 3 Sell (49 analysts)
Bull Case
Analysts expect 42.7% EPS growth next year while the stock trades at just 9.7x forward earnings, making it cheap for the growth on offer.
Bear Case
If the forward P/E reverts to the sector median of 12x, upside is limited, and an RSI of 59.6 suggests the stock is not oversold, so momentum could stall.
Catalyst to Watch
Watch for U.S. policy changes on solar incentives or tariffs, as these could directly affect First Solar's cost advantage and demand outlook.