First Solar Inc FSLR
Owner of constrained domestic solar supply positioned to capture secular electricity demand growth.
Valuation holds this up; Optionality is the soft spot.
| Moat | 5.0 |
| Management | 8.0 |
| Valuation | 9.0 |
| Risk · 10 = lowest | 6.0 |
| Business model | 7.0 |
| Optionality | 4.0 |
The price needs 0.0% growth a year for ten years. The AI thinks 9.0% is achievable, at a 30.0% margin.
First Solar trades at roughly 12x earnings despite 28% FCF margins and a multi-year contracted backlog. The market appears to be pricing in only modest growth, yet US policy incentives and AI-driven power demand support sustained 9% revenue growth and stable high-30s operating margins. The main risk is execution on the new domestic plants or a surprise policy shift.
First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, India, Chile, and internationally. The company manufactures and sells PV solar modules with thin film semiconductor technology that provides conventional crystalline silicon PV solar modules. It also designs, manufactures, and sells cadmium telluride solar modules that convert sunlight into electricity. The company serves system developers, independent power producers, utilities, commercial and industrial companies, large corporate energy buyers, and other system owners and operators. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Phoenix, Arizona.
Write why this business works, set your own fair value, and let the briefing speak only when a rule you wrote is crossed.
Start the thirty days · no card