First Solar (FSLR)

Fundamental analysis
First Solar is an American manufacturer of solar panels. The company’s main strength is panel manufacturing outside China (currently the US, Germany and Malaysia). The company uses a proprietary technology based on cadmium telluride semiconductor. It was founded in 1993 in Florida. Today it is based in Tempe, Arizona.

First Solar is billed as the fourth largest solar panel manufacturer in the world. The company is a member of the S&P 500. Today, the company offers its customers not only panel manufacturing but a whole other series of services related to it (financing, installation, repair, recycling, etc.).

The company’s turnover for 2023 was USD 3.5 billion. The company has orders for about 78.3 GW of capacity, which in current prices represents about USD 23.3 billion (there was an increase of about 5 billion orders compared to 2023, when the backlog was USD 17.7 billion).

Results
In 2022, the company was at a loss of $44 million. In 2023, it made a profit of USD 830 million. The company’s turnover has been around USD 3 billion for several years. However, FSLR has been investing massively in new factory builds. Although the Malaysian plant is clearly leading in terms of the number of panels produced, the company is addressing the current geopolitical situation by building more factories right in the US. The company holds high cash of $2.1 billion (there has been a $0.5 billion reduction in cash from 2022).
The company’s PE is 14.52. Over the past 12 months, the company’s share price has fallen 7%, and in this calendar year the price has risen 13%.

Technical Analysis
The moving averages crossed a couple of days ago and started an uptrend. Although the RSI is at the top of its range, it is not overbought. At the same time, the price has bounced off support at $177 per share. Average volume is holding around 1 million shares traded per day. The strong support at $136 per share has not been broken, although it has been tested several times.

Conclusion
FirstSolar stock may look like it is overshooting the mark. Reported economic results look good. Technical analysis has moved into an initial uptrend according to the moving averages. The first resistance is around the $218 price. There is decent room for growth. On the other hand, if the company’s reported results are already fully priced in, it is possible that stronger growth will not be forthcoming. On the contrary, a correction may come. Calmly up to the price of USD 136 per share, which is a strong support.