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FSLR (First Solar) Piotroski F-Score : 6 (As of Oct. 29, 2024)


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What is First Solar Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

First Solar has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for First Solar's Piotroski F-Score or its related term are showing as below:

FSLR' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 6

During the past 13 years, the highest Piotroski F-Score of First Solar was 7. The lowest was 2. And the median was 5.


First Solar Piotroski F-Score Historical Data

The historical data trend for First Solar's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

First Solar Piotroski F-Score Chart

First Solar Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 6.00 7.00 4.00 5.00

First Solar Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 5.00 5.00 6.00

Competitive Comparison of First Solar's Piotroski F-Score

For the Solar subindustry, First Solar's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


First Solar's Piotroski F-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, First Solar's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where First Solar's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was 268.398 + 349.239 + 236.616 + 349.356 = $1,204 Mil.
Cash Flow from Operations was 165.427 + 561.109 + 267.723 + 193.014 = $1,187 Mil.
Revenue was 801.09 + 1158.553 + 794.108 + 1010.482 = $3,764 Mil.
Gross Profit was 376.175 + 502.033 + 346.003 + 498.889 = $1,723 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(8997.166 + 9582.645 + 10365.132 + 10760.582 + 11014.255) / 5 = $10143.956 Mil.
Total Assets at the begining of this year (Jun23) was $8,997 Mil.
Long-Term Debt & Capital Lease Obligation was $471 Mil.
Total Current Assets was $3,949 Mil.
Total Current Liabilities was $1,773 Mil.
Net Income was -49.168 + -7.548 + 42.561 + 170.579 = $156 Mil.

Revenue was 628.933 + 1002.391 + 548.286 + 810.673 = $2,990 Mil.
Gross Profit was 20.982 + 60.613 + 112.051 + 310.42 = $504 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(7419.369 + 7492.817 + 8251.228 + 8564.596 + 8997.166) / 5 = $8145.0352 Mil.
Total Assets at the begining of last year (Jun22) was $7,419 Mil.
Long-Term Debt & Capital Lease Obligation was $474 Mil.
Total Current Assets was $3,661 Mil.
Total Current Liabilities was $1,091 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

First Solar's current Net Income (TTM) was 1,204. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

First Solar's current Cash Flow from Operations (TTM) was 1,187. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=1203.609/8997.166
=0.13377646

ROA (Last Year)=Net Income/Total Assets (Jun22)
=156.424/7419.369
=0.02108319

First Solar's return on assets of this year was 0.13377646. First Solar's return on assets of last year was 0.02108319. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

First Solar's current Net Income (TTM) was 1,204. First Solar's current Cash Flow from Operations (TTM) was 1,187. ==> 1,187 <= 1,204 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=470.953/10143.956
=0.04642696

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=473.604/8145.0352
=0.05814634

First Solar's gearing of this year was 0.04642696. First Solar's gearing of last year was 0.05814634. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun24)=Total Current Assets/Total Current Liabilities
=3948.923/1772.629
=2.22772109

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=3660.73/1090.614
=3.35657712

First Solar's current ratio of this year was 2.22772109. First Solar's current ratio of last year was 3.35657712. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

First Solar's number of shares in issue this year was 107.525. First Solar's number of shares in issue last year was 107.278. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1723.1/3764.233
=0.45775594

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=504.066/2990.283
=0.16856799

First Solar's gross margin of this year was 0.45775594. First Solar's gross margin of last year was 0.16856799. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=3764.233/8997.166
=0.41837985

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=2990.283/7419.369
=0.40303737

First Solar's asset turnover of this year was 0.41837985. First Solar's asset turnover of last year was 0.40303737. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+0+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

First Solar has an F-score of 6 indicating the company's financial situation is typical for a stable company.

First Solar  (NAS:FSLR) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


First Solar Piotroski F-Score Related Terms

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First Solar Business Description

Address
350 West Washington Street, Suite 600, Tempe, AZ, USA, 85288
First Solar designs and manufactures solar photovoltaic panels, modules, and systems for use in utility-scale development projects. The company's solar modules use cadmium telluride to convert sunlight into electricity. This is commonly called thin-film technology. First Solar is the world's largest thin-film solar module manufacturer. It has production lines in Vietnam, Malaysia, the United States, and India.
Executives
Patrick James Buehler officer: Chief Quality and Rel. Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Byron Michael Jeffers officer: CAO, Interim 350 WEST WASHINGTON ST., TEMPE AZ 85281
Kuntal Kumar Verma officer: Chief Mfg. Engineering Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Mark R Widmar officer: Chief Financial Officer C/O GRAFTECH INTERNATIONAL LTD, 12900 SNOW ROAD, PARMA OH 44130
Jason E. Dymbort officer: General Counsel, Interim 77 RIO ROBLES, SAN JOSE CA 95134
Alexander R. Bradley officer: Chief Financial Officer 77 RIO ROBLES, SAN JOSE CA 95134
Michael Koralewski officer: Chief Mfg. Operations Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Michael T Sweeney director GOLDNER HAWN, 3700 WELLS FARGO CENTER, 90 SOUTH 7TH ST, MINNEAPOLIS MN 55402
Paul H Stebbins director C/O WORLD FUEL SERVICES CORP, 9800 N.W. 41ST STREET, SUITE 400, MIAMI FL 33178
Richard D Chapman director 350 WEST WASHINGTON STREET, SUITE 600, TEMPE AZ 85281
Caroline Stockdale officer: EVP, HR & Communications C/O WARNER MUSIC GROUP, 75 ROCKEFELLER PLAZA, NEW YORK NY 10019
R Craig Kennedy director 1844 "R" STREET, NW, WASHINGTON DC 20009
Georges Antoun officer: Chief Operating Officer C/O FIRST SOLAR, INC., 350 WEST WASHINGTON ST., SUITE 600, TEMPE AZ 85281
Markus Gloeckler officer: Co-Chief Technology Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
William J Post director 400 NORTH FIFTH STREET, ., PHOENIX AZ 85004