First Solar, Inc. (FSLR) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: First Solar, Inc.

Updated on October 31, 2026 · accounts published on October 29, 2026

A highly profitable business at peak margins, with a cash-rich balance sheet and an uneven cash record

First Solar trades at a P/E of 10.1 over the last 12 months, 42 % below its sector median of 17.3, with margins far above its decade average.

• Is First Solar expensive or cheap? The P/E of 10.1 over the last 12 months is 42 % below the sector median of 17.3.
• How is the business doing? Operating margin of 38 % over the last 12 months, against an 11 % average for fiscal 2014-2025.
• How strong is the balance sheet? Net cash of $21.57 per share in fiscal 2025, about 12 % of the current price, with debt/equity of 0.03.
• What to expect from the next earnings? Analysts expect EPS of $5.62 next quarter; results are due February 23, 2027.
• Does it generate cash through the whole cycle? Free cash flow was positive in only 2 of the last 10 fiscal years (2016-2025); the sector bar is 8.

Is First Solar expensive or cheap?

First Solar trades at a P/E of 10.1 over the last 12 months, 42 % below the 17.3 median of 140 sector peers. Its EV/EBITDA of 6.9× is well under its nine-year average of 20.8×. The free cash flow yield is 10 % and the earnings yield is 13 %. The risk is the cycle: the P/E is below 70 % of its four-year average of 18.7, a pattern that often marks peak earnings rather than a bargain. The market seems to be pricing that risk in: the stock is down 25 % over 12 months and trades 45 % below its 52-week high of $318.25.

How is the business doing?

Revenue grew 24 % and EPS 18 % over the last 12 months. The operating margin reached 38 %, up from 31 % in fiscal 2025 and more than three times the 11 % average of 2014-2025. ROIC of 15.1 % is 7.7 points above the sector median of 7.4 %, and ROE stands at 18 %. The track record is less steady: ROIC topped 10 % in only 2 of the last 10 fiscal years, with a low of −9.5 % in 2016. Today's returns are exceptional for this company, so it is hard to treat them as the new normal.

How strong is the balance sheet?

First Solar carries almost no debt. Debt to equity is 0.03 over the last 12 months, and net debt to EBITDA was −1.1× in fiscal 2025, far below the 2× ceiling the sector treats as healthy. Cash of $26.63 per share against $5.06 of debt leaves net cash of $21.57, about 12 % of the share price. A current ratio of 2.57, an Altman Z of 6.3 in the safe zone and a Piotroski score of 7 out of 9 all point the same way. The balance sheet carries little risk. The open question is whether the business can keep generating cash, since solvency is not in doubt.

What to expect from the next earnings?

On October 29, 2026, First Solar reported EPS of $5.30 against $4.67 expected, a 13.5 % beat. Its record is mixed, with 4 beats in the last 8 quarters. For the next report, due February 23, 2027, analysts expect EPS of $5.62. Over the last 30 days the 2026 EPS consensus barely moved, from $17.55 to $17.52 across 25 analysts, and revenue estimates were just as stable. Of the 74 analysts covering the company, 44 rate it a buy, 23 a hold and 7 a sell. The key test is whether margins stay near current levels.

Does it generate cash through the whole cycle?

Energy businesses are cyclical, so profits at the top of the cycle say little on their own. The sector judges them on cash across good and bad years. First Solar falls short on that test: free cash flow was positive in only 2 of 10 fiscal years from 2016 to 2025, while 8 out of 10 marks cycle discipline. Average ROIC of 8.8 % for 2021-2025 also misses the 10 % bar. Today's figures pass: a 10 % free cash flow yield over the last 12 months clears the 8 % threshold, and capex at 17 % of revenue in fiscal 2025 sits within the healthy 10-20 % range.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.