FSLR - Embedded Expectations Analysis - 2018 11 26
First Solar, Inc. (FSLR:USA) currently trades at a discount to UAFRS-based (Uniform) Assets, with a 0.7x Uniform P/B. At these levels, the market has muted expectations for the firm, but management is confident in their long-term outlook, operational costs, and new Series 6 modelSpecifically, management is confident in their focus to put FSLR in the strongest position possible for 2021, and that their solid financial results in Q3 were driven by the closure of several project sales. Additionally, they are confident in their ability to meet lowered operating expense forecasts, and that they have a 10% bookings premium on their Series 6 product over the Series 4. They are also confident in their ability to drive their contribution margin by scaling production of their Series 6 model, and that their module segment COGS is comprised of both Series 4 COGS and Series 6 ramp-related costs
First Solar is a provider of photovoltaic (PV) solar energy solutions. The company designs, manufactures and sells PV solar modules with a thin film semiconductor technology, and also develops and sells PV solar power systems that mainly use the modules it manufactures. The company also provides operations and maintenance (O&M) services to system owners. The company's modules segment involves the design, manufacture and sale of cadmium telluride solar modules, which convert sunlight into electricity. The company's second segment is its systems segment, through which it provides power plant solutions, which include project development, engineering, procurement, and construction services and O&M services.
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