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Here's How Much You'd Have If You Invested $1000 in First Solar a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in First Solar (FSLR - Free Report) ten years ago? It may not have been easy to hold on to FSLR for all that time, but if you did, how much would your investment be worth today?
First Solar's Business In-Depth
With that in mind, let's take a look at First Solar's main business drivers.
Headquartered in Tempe, AZ, First Solar, Inc. is the world’s largest thin-film PV solar module manufacturer and the largest PV solar module manufacturer in the Western Hemisphere. The company is a leading global provider of comprehensive photovoltaic (PV) solar energy solutions and specializes in designing, manufacturing, and selling solar electric power modules using a proprietary thin-film semiconductor technology. The company sells its products to project developers, system integrators and renewable energy project operators primarily in Europe and Germany in particular. First Solar also engages in designing and deploying commercial solar projects for utilities. The company also develops and sells PV solar power systems that primarily use the modules it manufactures. Additionally, it provides operations and maintenance (“O&M”) services to system owners.
The company was founded in 1999 and incorporated in 2006. Formerly known as First Solar Holdings, LLC, the company changed its name to First Solar Holdings, Inc. and subsequently to First Solar, Inc. in 2006. For the year ended 2021, the company made changes in the reportable segments to align with revisions to its internal reporting structure and long-term strategic plans. Following this change, the modules business represents First Solar’s only reportable segment.
Modules Segment: This segment designs, manufactures, and sells solar modules, which convert sunlight into electricity. In early 2023, First Solar started producing its latest generation of modules, Series 7. For 2023, net sales from this segment amounted to $3.30 billion, comprising 99.3% of total sales.
Other: It comprises First Solar’s residential operations and Systems business activities, which include project development, engineering, procurement and construction services as well as O&M services. During 2023, net sales from “Other” amounted to $0.22 billion, including 0.7% of total sales.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in First Solar ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in October 2014 would be worth $3,790.31, or a 279.03% gain, as of October 1, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 192.17% and the price of gold went up 109.16% over the same time frame.
Analysts are forecasting more upside for FSLR too.
First Solar is the largest PV solar module manufacturer in the United States, the company is investing heftily to expand its manufacturing capacity. Such manufacturing capacity expansion plans should enable it to duly meet its production target of 15.6-16 gigawatts of solar modules by 2024-end. Our model projects the company’s topline to increase year over year in the 2024, 2025 and 2026 period respectively. The stock has outperformed the industry in the year-to-date period. However, the company’s trailing 12-month EV/SALES TTM ratio is higher than that of its industry. Termination or reduction in imposed tariffs on crystalline silicon solar cells from China poses risks for the stock. The structural supply-demand imbalance in the solar market may lead to pricing volatility, thereby adversely impacting First Solar’s operating results.
Shares have gained 9.71% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in First Solar a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in First Solar (FSLR - Free Report) ten years ago? It may not have been easy to hold on to FSLR for all that time, but if you did, how much would your investment be worth today?
First Solar's Business In-Depth
With that in mind, let's take a look at First Solar's main business drivers.
Headquartered in Tempe, AZ, First Solar, Inc. is the world’s largest thin-film PV solar module manufacturer and the largest PV solar module manufacturer in the Western Hemisphere. The company is a leading global provider of comprehensive photovoltaic (PV) solar energy solutions and specializes in designing, manufacturing, and selling solar electric power modules using a proprietary thin-film semiconductor technology. The company sells its products to project developers, system integrators and renewable energy project operators primarily in Europe and Germany in particular. First Solar also engages in designing and deploying commercial solar projects for utilities. The company also develops and sells PV solar power systems that primarily use the modules it manufactures. Additionally, it provides operations and maintenance (“O&M”) services to system owners.
The company was founded in 1999 and incorporated in 2006. Formerly known as First Solar Holdings, LLC, the company changed its name to First Solar Holdings, Inc. and subsequently to First Solar, Inc. in 2006. For the year ended 2021, the company made changes in the reportable segments to align with revisions to its internal reporting structure and long-term strategic plans. Following this change, the modules business represents First Solar’s only reportable segment.
Modules Segment: This segment designs, manufactures, and sells solar modules, which convert sunlight into electricity. In early 2023, First Solar started producing its latest generation of modules, Series 7. For 2023, net sales from this segment amounted to $3.30 billion, comprising 99.3% of total sales.
Other: It comprises First Solar’s residential operations and Systems business activities, which include project development, engineering, procurement and construction services as well as O&M services. During 2023, net sales from “Other” amounted to $0.22 billion, including 0.7% of total sales.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in First Solar ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in October 2014 would be worth $3,790.31, or a 279.03% gain, as of October 1, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 192.17% and the price of gold went up 109.16% over the same time frame.
Analysts are forecasting more upside for FSLR too.
First Solar is the largest PV solar module manufacturer in the United States, the company is investing heftily to expand its manufacturing capacity. Such manufacturing capacity expansion plans should enable it to duly meet its production target of 15.6-16 gigawatts of solar modules by 2024-end. Our model projects the company’s topline to increase year over year in the 2024, 2025 and 2026 period respectively. The stock has outperformed the industry in the year-to-date period. However, the company’s trailing 12-month EV/SALES TTM ratio is higher than that of its industry. Termination or reduction in imposed tariffs on crystalline silicon solar cells from China poses risks for the stock. The structural supply-demand imbalance in the solar market may lead to pricing volatility, thereby adversely impacting First Solar’s operating results.
Shares have gained 9.71% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.