Latest Ratios: P/E Ratio 13.5x · EV/EBITDA 8.3x · ROE 17.4%. (2001–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $20.6B | $28.1B | $19.0B | $18.5B | $16.0B | $9.3B | $10.6B | $5.9B | $4.5B | $7.0B | $3.3B |
| Enterprise Value | $18.3B | $25.8B | $18.0B | $17.2B | $14.7B | $8.3B | $9.8B | $5.1B | $3.6B | $5.2B | $2.2B |
| P/E Ratio → | 13.51 | 18.38 | 14.66 | 22.26 | — | 19.90 | 26.52 | — | 31.22 | — | — |
| P/S Ratio | 3.95 | 5.38 | 4.51 | 5.57 | 6.09 | 3.19 | 3.89 | 1.92 | 2.01 | 2.39 | 1.14 |
| P/B Ratio | 2.16 | 2.95 | 2.38 | 2.77 | 2.73 | 1.56 | 1.91 | 1.16 | 0.86 | 1.38 | 0.63 |
| P/FCF | 17.37 | 23.66 | — | — | — | — | — | — | — | 8.52 | — |
| P/OCF | 10.03 | 13.66 | 15.56 | 30.71 | 18.27 | 39.23 | 284.30 | 33.83 | — | 5.25 | 15.97 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.94 | 4.29 | 5.18 | 5.62 | 2.83 | 3.62 | 1.68 | 1.59 | 1.77 | 0.75 |
| EV / EBITDA | 8.28 | 11.65 | 9.93 | 14.74 | 60.68 | 9.76 | 17.82 | 117.55 | 20.89 | 17.78 | — |
| EV / EBIT | 10.88 | 15.87 | 12.49 | 18.99 | 706.58 | 14.13 | 30.92 | — | 25.66 | 22.87 | — |
| EV / FCF | — | 21.72 | — | — | — | — | — | — | — | 6.31 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.6% | 40.6% | 44.2% | 39.2% | 2.7% | 25.0% | 25.1% | 17.9% | 17.5% | 18.7% | 22.0% |
| Operating Margin | 32.3% | 32.3% | 33.2% | 25.8% | -1.0% | 20.1% | 11.7% | -5.3% | 1.8% | 6.0% | -19.6% |
| Net Profit Margin | 29.3% | 29.3% | 30.7% | 25.0% | -1.7% | 16.0% | 14.7% | -3.8% | 6.4% | -5.6% | -14.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.4% | 17.4% | 17.6% | 13.3% | -0.7% | 8.2% | 7.5% | -2.2% | 2.8% | -3.2% | -7.7% |
| ROA | 12.0% | 12.0% | 11.5% | 8.9% | -0.6% | 6.5% | 5.4% | -1.6% | 2.1% | -2.4% | -5.9% |
| ROIC | 17.6% | 17.6% | 16.8% | 12.9% | -0.4% | 9.1% | 5.2% | -2.8% | 0.8% | 3.6% | -9.7% |
| ROCE | 15.9% | 15.9% | 14.6% | 10.5% | -0.4% | 9.1% | 5.1% | -2.6% | 0.6% | 2.9% | -9.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.05 | 0.05 | 0.09 | 0.09 | 0.04 | 0.07 | 0.09 | 0.12 | 0.09 | 0.09 | 0.04 |
| Debt / EBITDA | 0.23 | 0.23 | 0.40 | 0.54 | 0.97 | 0.47 | 0.88 | 13.63 | 2.73 | 1.49 | — |
| Net Debt / Equity | — | -0.24 | -0.11 | -0.20 | -0.21 | -0.18 | -0.13 | -0.15 | -0.18 | -0.36 | -0.22 |
| Net Debt / EBITDA | -1.04 | -1.04 | -0.50 | -1.14 | -5.14 | -1.24 | -1.35 | -17.34 | -5.48 | -6.25 | — |
| Debt / FCF | — | -1.94 | — | — | — | — | — | — | — | -2.22 | — |
| Interest Coverage | 36.82 | 36.82 | 37.18 | 69.75 | 1.70 | 44.65 | 13.20 | -3.44 | 5.37 | 8.84 | -25.16 |
Net cash position: cash ($2.8B) exceeds total debt ($499M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.67 | 2.67 | 2.45 | 3.55 | 3.65 | 4.39 | 3.56 | 2.73 | 4.57 | 5.89 | 4.21 |
| Quick Ratio | 2.20 | 2.20 | 1.80 | 2.77 | 2.90 | 3.26 | 2.73 | 2.35 | 4.04 | 5.58 | 3.74 |
| Cash Ratio | 1.27 | 1.27 | 0.86 | 1.61 | 2.48 | 2.51 | 2.06 | 1.64 | 3.01 | 4.60 | 2.17 |
| Asset Turnover | — | 0.39 | 0.35 | 0.32 | 0.32 | 0.39 | 0.38 | 0.41 | 0.32 | 0.43 | 0.42 |
| Inventory Turnover | 2.89 | 2.89 | 1.74 | 1.99 | 3.25 | 2.68 | 2.89 | 5.06 | 4.16 | 11.89 | 5.32 |
| Days Sales Outstanding | — | 135.63 | 156.95 | 154.82 | 45.93 | 56.77 | 39.62 | 84.88 | 99.67 | 52.00 | 64.18 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.4% | 5.4% | 6.8% | 4.5% | — | 5.0% | 3.8% | — | 3.2% | — | — |
| FCF Yield | 5.8% | 4.2% | — | — | — | — | — | — | — | 11.7% | — |
| Buyback Yield | 0.1% | 0.1% | 0.1% | 0.2% | 0.1% | 0.2% | 0.1% | 0.3% | 0.2% | 0.1% | 0.6% |
| Total Shareholder Yield | 0.1% | 0.1% | 0.1% | 0.2% | 0.1% | 0.2% | 0.1% | 0.3% | 0.2% | 0.1% | 0.6% |
| Shares Outstanding | — | $108M | $108M | $107M | $107M | $107M | $107M | $105M | $106M | $104M | $103M |
Includes 30+ ratios · 23 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying FSLR stock.
First Solar, Inc.'s current P/E ratio is 13.5x. The historical average is 28.5x. This places it at the 15th percentile of its historical range.
First Solar, Inc.'s current EV/EBITDA is 8.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.0x.
First Solar, Inc.'s return on equity (ROE) is 17.4%. The historical average is 6.8%.
Based on historical data, First Solar, Inc. is trading at a P/E of 13.5x. This is at the 15th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
First Solar, Inc. has 40.6% gross margin and 32.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
First Solar, Inc.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Policy and subsidy dependence
Metrics are mathematically derived from official filings.
Subsidy-Enhanced Margins Mask Underlying Volatility
Gross margin surged to 57.3% in 2026Q2, up from 45.6% a year earlier, but this includes Section 45X tax credits recorded as cost reductions, according to recent SEC filings, potentially overstating true manufacturing profitability.
The reported gross margin expansion is heavily influenced by the 45X credits, which are not derived from customer payments. Excluding these subsidies, the underlying manufacturing margin appears significantly lower, suggesting that the company's earning power is more modest than headline figures imply. The sequential improvement from 46.6% in 2026Q1 to 57.3% in 2026Q2 also reflects operating leverage and cost control, but the sustainability of such margins is contingent on policy continuity.
Returns on Capital Remain Modest Despite Margin Strength
ROIC has hovered between 2.5% and 5.4% over the past ten quarters, according to financial statements, indicating that despite high gross margins, the capital-intensive manufacturing model yields relatively low returns on invested capital.
The company's ROIC of 4.0% in 2026Q2 is below its cost of capital, suggesting that the massive investment in manufacturing capacity has not yet generated excess returns. This is partly due to the high fixed-asset base (PP&E of $5.6B) and the cyclicality of the solar industry. While margins are strong, the efficiency of capital deployment remains a concern, as the company continues to invest heavily in expansion, which may dilute returns in the near term.
Working Capital Swings Drive Cash Flow Volatility
Cash conversion cycle extended to 327 days in 2026Q2, up from 254 days a year earlier, according to recent filings, driven by elevated DSO of 159 days and DIO of 234 days, indicating significant working capital absorption.
The company's cash conversion cycle has been volatile, swinging from 185 days in 2024Q4 to 387 days in 2025Q1, reflecting the lumpy nature of project-based revenue and inventory build-up. The high DSO and DIO suggest that the company is financing its customers and holding substantial inventory, which strains operating cash flow. This is a key reason why net income of $422.6M in 2026Q2 was accompanied by negative operating cash flow of -$144.9M, as reported in the cash flow statement.
Minimal Leverage Provides Strategic Flexibility
Debt-to-equity ratio stands at 0.02, with total debt of $194M and interest coverage of 83.6x, according to balance sheet data, indicating a fortress balance sheet with ample capacity to withstand industry downturns.
The company has deliberately deleveraged over the past two years, reducing debt from $681.5M in 2024Q1 to $194.0M in 2026Q2. This conservative capital structure, combined with a cash position of $1.7B, provides significant financial flexibility to fund expansion or weather policy shocks. However, the low leverage also suggests that management is not aggressively optimizing capital structure, potentially leaving value on the table for shareholders.
Liquidity Cushion Remains Robust Despite Cash Flow Swings
Current ratio improved to 2.52 in 2026Q2 from 2.41 in 2024Q1, with quick ratio at 2.00, according to recent filings, indicating a strong liquidity position that can absorb working capital volatility.
Despite the negative free cash flow in 2026Q2, the company's liquidity metrics remain healthy, supported by a substantial cash balance and minimal debt. The current ratio of 2.52 suggests that current assets comfortably cover current liabilities, even with elevated inventory levels. This provides a buffer against potential delays in customer payments or supply chain disruptions, though the negative FCF margin of -29.0% in 2026Q2 warrants monitoring.
Gross Margin Misleads Without Subsidy Adjustment
The most misapplied ratio is gross margin, which includes Section 45X tax credits as cost reductions, according to recent filings, making the company appear far more profitable than its underlying manufacturing economics suggest.
Analysts often compare First Solar's gross margin of 57.3% to silicon-based peers like JinkoSolar, but this comparison is flawed because the 45X credits are not derived from customer payments. Adjusting for these subsidies, the true manufacturing margin is likely in the mid-20s, which is more in line with industry norms. Investors should focus on adjusted gross margin excluding subsidies and on cash flow metrics to assess the company's sustainable earning power.