{"id":23573,"date":"2023-06-16T14:49:36","date_gmt":"2023-06-16T18:49:36","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/whats-driving-first-solars-outperformance\/"},"modified":"2023-06-16T14:49:38","modified_gmt":"2023-06-16T18:49:38","slug":"whats-driving-first-solars-outperformance","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=23573","title":{"rendered":"What\u2019s Driving First Solar\u2019s Outperformance?"},"content":{"rendered":"<div>\n<p><strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/FSLR\">First Solar stock<\/strong> price jumped almost 3.5x from $56 at the end of 2019 to $193 currently, primarily due to favorable changes in its P\/S multiple. However, the company\u2019s revenues have actually declined between 2019 and 2022 as the company moved to reduce exposure to the solar power project development space. Due to this, the company\u2019s stock price has risen and has managed to outperform the S&amp;P 500, which returned around 35% over the same period.<\/p>\n<p>In our interactive dashboard, <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/FSLR\/no-login-required\/KkVfOnIB\/Why-First-Solar-Stock-Moved-FSLR-Stock-Has-Gained-262-Since-2018-Primarily-Due-To-Favorable-Change-In-Price-To-Sales-Multiple-P-S-?fromforbesandarticle=trefis230616\">Why First Solar Stock Moved:<\/strong><strong> FSLR Stock Has Gained 245% Since 2019<\/strong>, we break down the factors behind this move.<\/p>\n<p><em>FSLR\u2019s Total Revenue has declined almost 9% from $3.1 billion in FY 2019 to $2.8 billion currently<\/em><\/p>\n<ul>\n<li>FSLR\u2019s total revenue growth has been mixed over the years, with sales standing at $3.1 billion in FY \u201919 and hovering around that level till FY \u201921 when sales stood at $2.9 billion. However, LTM sales currently stand lower at $2.8 billion.<\/li>\n<li>The company is a leading manufacturer of solar panel production facilities in the United States, Vietnam, and Malaysia. The company has largely been moving away from the project development business in recent years and this has contributed to a decline in revenue.<\/li>\n<li>As of its most recent full-year 2022 earnings, sales from modules stood at $2.43 billion, accounting for 93% of total revenue. This marks an increase of about 4% versus the previous year.<\/li>\n<li>For details about FSLR revenues and comparison to peers, see<strong> <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/FSLR\/no-login-required\/NevSF7fL\/First-Solar-FSLR-Revenue-Comparison?fromforbesandarticle=trefis230616\">First Solar Revenue Comparison<\/strong><\/li>\n<\/ul>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p><em>Revenue per share declined from $28.98 in 2019 to $26.22 in the last 12 months, implying a -9.5% change<\/em><\/p>\n<ul>\n<li>FSLR\u2019s revenue declined from $3.1 billion in 2019 to $2.8 billion in the last 12 months, implying an 8.6% decline, while the company\u2019s shares outstanding have increased from 106 million at the end of 2019 to 107 million currently, implying a 1.1% increase.<\/li>\n<li>FSLR RPS has decreased from $28.98 in 2019 to $26.22 in the last 12 months.<\/li>\n<\/ul>\n<p><em>Price-To-Sales (P\/S) multiple for FSLR has risen strongly from 1.9x at 2018 end to 7.4x currently, a jump of more than 3.5x over its 2018 level<\/em><\/p>\n<ul>\n<li>FSLR\u2019s P\/S multiple has surged from 1.9x in 2019 to about 7.4x in 2022, implying a change of 281%.<\/li>\n<li>The growth is driven by higher government incentives for solar products and rising demand for the company\u2019s panels. Moreover, the company\u2019s decision to pivot away from the highly competitive project development space is also likely helping the market\u2019s perception of the stock.<\/li>\n<li>For additional details about the company stock returns and comparison to peers, see <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/FSLR\/no-login-required\/IvnKmiLW\/First-Solar-Stock-Return-Comparison?fromforbesandarticle=trefis230616\">First Solar Stock Return Comparison<\/strong><strong>.<\/strong><\/li>\n<\/ul>\n<p>What if you\u2019re looking for a more balanced portfolio instead? Here\u2019s a <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/RsQ6oXgC\/High-Quality-Portfolio-30-Stocks-with-189-Return-Since-2016-vs-88-for-S-P-500?fromforbesandarticle=trefis230616\">high-quality portfolio<\/strong> that\u2019s beaten the market consistently since 2016.<\/p>\n<p>Invest with <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/M7MacZNG?fromforbes\">Market Beating Portfolios<\/strong><\/p>\n<p>See all <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/price-estimates?fromforbes\">Price Estimates<\/strong><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/greatspeculations\/2023\/06\/16\/whats-driving-first-solars-outperformance\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>First Solar stock price jumped almost 3.5x from $56 at the end of 2019 to $193 currently, primarily due to favorable changes in its P\/S multiple. However, the company\u2019s revenues have actually declined between 2019 and 2022 as the company moved to reduce exposure to the solar power project development space. Due to this, the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23574,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-23573","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What\u2019s Driving First Solar\u2019s Outperformance? | iFintechWorld<\/title>\n<meta name=\"description\" content=\"First Solar stock price jumped almost 3.5x from $56 at the end of 2019 to $193 currently, primarily due to favorable changes in its P\/S multiple. 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