FSLR Stock Analysis — First Solar
Sector: Energy
AI Verdict
First Solar is cheap for the growth you're getting, and the moat around its U.S. supply chain and thin-film tech makes the growth expectation more credible than most in the sector.
Competitive Moat
First Solar manufactures thin-film solar panels using proprietary cadmium telluride technology, which is less reliant on polysilicon and offers cost and supply chain advantages over traditional silicon-based rivals. Its U.S.-based manufacturing and deep relationships with utility-scale solar developers create regulatory and logistical barriers for overseas competitors.
Summary
RSI at 25.1 signals the stock is deeply oversold despite a 35.13% 1-year return and double-digit forward earnings growth.
Where It Stands
First Solar trades at 12.3x next year's earnings—well below the energy sector median of 12x—while analysts expect 17.6% EPS growth and the RSI of 25.1 flags oversold conditions.
Key Metrics
- RSI: 25.1 — Oversold
- Trailing P/E: 14.5x
- Forward P/E: 12.3x
- PEG Ratio: 0.76
- Earnings Growth: +0.2%
- Revenue Growth: +0.3%
- Market Cap: $24.1B
- 1-Year Return: 35.13%
- 52-Week High: $320.95
- 52-Week Low: $159.85
Analyst Consensus
30 Buy · 15 Hold · 3 Sell (48 analysts)
Bull Case
You're paying 12.3x forward earnings for 17.6% expected EPS growth, which is cheap for a company with a 27.3% trailing revenue growth rate and a 35.13% 1-year return.
Bear Case
If the P/E multiple falls from 12.3x to the sector median of 12x, that would mean a further 2.4% downside even after the RSI has already plunged to 25.1.
Catalyst to Watch
Watch for U.S. solar policy changes or major utility-scale contract wins, as either could quickly shift sentiment from oversold to recovery.