First Solar, headquartered in Tempe, Arizona, manufactures CdTe solar modules and employs 6,700 people. The company, which went public in 2006, operates in two segments: Modules Business and Other.
Based on our analysis, First Solar has received an undervalued rating of 4 out of 5 stars from Cashu, supported by several key financial ratios that highlight its strong performance relative to the sector.
First, the Price-to-Earnings (PE) ratio for First Solar stands at 12.90, significantly lower than the sector average of 23.16. A lower PE ratio indicates that the stock may be undervalued, as investors are paying less for each dollar of earnings compared to peers.
Additionally, First Solar's Price-to-Book (PB) ratio is 2.37, which is also below the sector average of 3.48. This suggests that the company's shares are trading at a lower price relative to its book value, indicating potential undervaluation.
Furthermore, First Solar demonstrates exceptional profitability with a net profit margin of 30.72, compared to a sector average of -15.27. This high margin signifies that First Solar is able to retain more profit from its revenues, showcasing efficient cost management and a competitive edge within the market.
The company also boasts a return on equity (ROE) of 16.20, in stark contrast to the sector average of -23.19. A positive ROE indicates that First Solar is effectively generating profit from its shareholders' equity, reflecting strong financial health.
Lastly, First Solar's return on assets (ROA) ratio is 10.66, whereas the sector average is -12.89. This high ROA signifies that the company is utilizing its assets efficiently to generate earnings.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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