FSLR
First Solar, Inc.
Technology · Solar · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong profitability metrics — a 30.6% operating margin, 29.3% net margin, and 11.5% return on assets in FY2025 — anchor the composite score near the top of the profitability dimension.
- Robust annual revenue growth of 24.1% and an 18.2% rise in diluted EPS in FY2025 contributed meaningfully to the growth component of the score.
- Near-zero leverage with a debt-to-equity ratio of 0.05 and a large asset base of $13,321,310,000 supported a high financial health sub-score, reinforcing the Low risk rating and Core Holding Candidate label.
Why Not Higher
- The absence of any dividend payment results in a zero score for the dividend factor, mechanically capping the total composite score regardless of operational strength.
- The sequential pullback in revenue, net income, and operating income in 2026Q1 after the 2025Q4 peak tempered the momentum score, preventing a maximum reading on that dimension.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew 24.1% from FY2024 to FY2025, rising from $4,206,289,000 to $5,219,376,000. Net income increased 18.3% over the same period, and diluted EPS rose 18.2% from $12.02 in FY2024 to $14.21 in FY2025.
The model rewarded consistent double-digit expansion across revenue, net income, and earnings per share from FY2024 to FY2025. The slightly lower score relative to the maximum likely reflects that growth, while solid, did not reach the highest tier thresholds built into the model.
In FY2025, First Solar posted an operating margin of 30.6%, a net margin of 29.3%, and a return on assets of 11.5%, reflecting broad-based profitability across income and asset efficiency measures.
The model rewarded the combination of a high operating margin, a nearly equivalent net margin, and a meaningful return on assets in FY2025, all of which signal that the company converts revenue to profit efficiently and deploys its asset base productively.
First Solar reported a debt-to-equity ratio of 0.05 in FY2025, indicating minimal financial leverage, against a total asset base of $13,321,310,000 in the same period.
The model rewarded the near-zero leverage ratio, which signals very low balance-sheet risk, alongside a substantial asset base in FY2025. The score falling short of the maximum likely reflects data gaps in other health sub-components that the model could not fully evaluate.
Over the last four reported quarters, revenue rose from $1,097,170,000 in 2025Q2 to a peak of $1,682,782,000 in 2025Q4 before pulling back to $1,044,240,000 in 2026Q1. Net income and operating income followed the same arc, with net income peaking at $520,883,000 in 2025Q4 and operating income peaking at $547,918,000 in 2025Q4, each declining in 2026Q1.
The model recognized a strong mid-period build through 2025Q3 and 2025Q4, but the sequential pullback in 2026Q1 across revenue, net income, and operating income tempered the momentum signal, producing a solid but not maximum score.
First Solar does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model assigns a score of zero for this factor because dividend income is absent, which mechanically eliminates any points available under the dividend component of the scoring methodology.
First Solar is assigned to the macro themes of Grid-Scale Battery Storage and Renewable Energy Generation.
Although the company carries two relevant macro theme assignments, the current model methodology did not translate those assignments into a positive sub-score; the theme assignment itself is confirmed, but it did not contribute points under the model's current scoring approach.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
First Solar delivered strong annual growth in FY2025, with revenue rising 24.1% to $5,219,376,000 and net income climbing 18.3%, while maintaining an operating margin of 30.6% and a net margin of 29.3% that reflect highly efficient profit conversion. The company's balance sheet is exceptionally clean, with a debt-to-equity ratio of just 0.05 against a total asset base of $13,321,310,000, underscoring very low financial risk. Quarterly momentum built strongly through 2025Q4 before a sequential pullback in 2026Q1 tempered the near-term signal. First Solar does not pay a dividend, which limits total-return appeal for income-oriented investors.
Plain English
First Solar is a solar panel company that grew its sales by about 24% last year, makes nearly 30 cents of profit for every dollar it earns, and carries almost no debt — but it doesn't pay dividends and its most recent quarter showed a dip in sales and profits after a strong run.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 24.1% year-over-year to $5,219,376,000 in FY2025, accompanied by an 18.3% rise in net income, demonstrating consistent double-digit expansion across the income statement.
- An operating margin of 30.6% and a net margin of 29.3% in FY2025 signal that First Solar converts revenue to profit at a high rate, while a return on assets of 11.5% shows productive deployment of its large asset base.
- A debt-to-equity ratio of just 0.05 in FY2025 means the company carries virtually no financial leverage, leaving it well-positioned to weather downturns or invest in growth without balance-sheet stress.
Bear Case
- Revenue, net income, and operating income all pulled back sequentially in 2026Q1 after peaking in 2025Q4, introducing uncertainty about whether the prior growth trajectory will resume.
- First Solar pays no dividend, meaning investors receive no current income and must rely entirely on business performance for returns.
- Growth, while solid at 24.1% for revenue and 18.2% for diluted EPS, did not reach the highest tier thresholds in the model, suggesting the pace of expansion may not satisfy investors seeking the fastest-growing names in the sector.
What Could Change the Picture
Bullish Triggers
- A return to sequential revenue and earnings growth in subsequent quarters following the 2026Q1 pullback would reinforce that the 2025Q4 peak was a high point in a continuing uptrend rather than a cyclical top.
- Sustained or expanding operating margins above 30% would confirm that profitability is structural rather than episodic, strengthening the long-term investment case.
Bearish Triggers
- If the 2026Q1 sequential decline in revenue and net income extends into additional quarters, it would signal a more durable slowdown rather than a temporary fluctuation.
- Any meaningful increase in the debt-to-equity ratio from its current near-zero level could indicate a shift in financial strategy that introduces balance-sheet risk not currently present.
Risk Profile
Low RiskFirst Solar's debt-to-equity ratio of 0.05 in FY2025 reflects minimal financial leverage against a total asset base of $13,321,310,000, indicating very low balance-sheet risk. The primary near-term uncertainty stems from the sequential decline in revenue and earnings in 2026Q1 following peak levels in 2025Q4, which warrants monitoring to determine whether the pullback is transitory.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.