FSLR - Embedded Expectations Analysis - 2019 05 13
First Solar, Inc. (FSLR:USA) currently trades at a discount to UAFRS-based (Uniform) Assets, with a 0.8x Uniform P/B. At these levels, the market has muted expectations for the firm, and while management may be concerned about Spanish economics and policy, factory production and openings, and energy prices, these expectations are still too bearish. As such, upside for the name is likely warrantedSpecifically, management may be concerned about the longevity of economic and policy tailwinds in Spain, the long-term demand for module deliveries, and their ability to sell their U.S. assets held for sale. Moreover, they may be exaggerating the production potential of their Vietnamese factory, and may be concerned about the progress of their Perrysburg factory opening, and average pricing in their backlog
Although management may have concerns about Spanish policy, factories, and pricing, long-term industry tailwinds and the firm's leadership position in its space suggest market expectations are still too bearish for FSLR, and equity upside remains warranted
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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.