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First Solar (NAS:FSLR) Piotroski F-Score

: 5 (As of Today)
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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 5 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: 5

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 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 7.00 4.00 5.00

First Solar Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score 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 Premium Member Only Premium Member Only Premium Member Only 4.00 5.00 5.00 6.00 5.00

Competitive Comparison

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 Piotroski F-Score Distribution

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 (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 42.561 + 170.579 + 268.398 + 349.239 = $831 Mil.
Cash Flow from Operations was -34.598 + -89.678 + 165.427 + 561.109 = $602 Mil.
Revenue was 548.286 + 810.673 + 801.09 + 1158.553 = $3,319 Mil.
Gross Profit was 112.051 + 310.42 + 376.175 + 502.033 = $1,301 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(8251.228 + 8564.596 + 8997.166 + 9582.645 + 10365.132) / 5 = $9152.1534 Mil.
Total Assets at the begining of this year (Dec22) was $8,251 Mil.
Long-Term Debt & Capital Lease Obligation was $518 Mil.
Total Current Assets was $4,635 Mil.
Total Current Liabilities was $1,306 Mil.
Net Income was -43.255 + 55.805 + -49.168 + -7.548 = $-44 Mil.

Revenue was 367.04 + 620.955 + 628.933 + 1002.391 = $2,619 Mil.
Gross Profit was 11.463 + -23.2 + 20.982 + 60.613 = $70 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(7413.746 + 7399.225 + 7419.369 + 7492.817 + 8251.228) / 5 = $7595.277 Mil.
Total Assets at the begining of last year (Dec21) was $7,414 Mil.
Long-Term Debt & Capital Lease Obligation was $225 Mil.
Total Current Assets was $3,791 Mil.
Total Current Liabilities was $1,038 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 831. ==> 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 602. ==> 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 (Dec22)
=830.777/8251.228
=0.10068526

ROA (Last Year)=Net Income/Total Assets (Dec21)
=-44.166/7413.746
=-0.00595731

First Solar's return on assets of this year was 0.10068526. First Solar's return on assets of last year was -0.00595731. ==> 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 831. First Solar's current Cash Flow from Operations (TTM) was 602. ==> 602 <= 831 ==> 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: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=517.793/9152.1534
=0.05657608

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=224.938/7595.277
=0.02961551

First Solar's gearing of this year was 0.05657608. First Solar's gearing of last year was 0.02961551. ==> Last year is lower than this year ==> Score 0.

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: Dec23)=Total Current Assets/Total Current Liabilities
=4634.809/1306.158
=3.54842906

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=3791.421/1038.048
=3.65245249

First Solar's current ratio of this year was 3.54842906. First Solar's current ratio of last year was 3.65245249. ==> 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 107.51. First Solar's number of shares in issue last year was 106.608. ==> 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
=1300.679/3318.602
=0.39193582

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=69.858/2619.319
=0.02667029

First Solar's gross margin of this year was 0.39193582. First Solar's gross margin of last year was 0.02667029. ==> 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 (Dec22)
=3318.602/8251.228
=0.40219492

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=2619.319/7413.746
=0.35330574

First Solar's asset turnover of this year was 0.40219492. First Solar's asset turnover of last year was 0.35330574. ==> 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+0+0+0+1+1
=5

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

First Solar has an F-score of 5 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

Thank you for viewing the detailed overview of First Solar's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


First Solar (NAS:FSLR) Business Description

Address
350 West Washington Street, Suite 600, Tempe, AZ, USA, 85281
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
Georges Antoun officer: Chief Operating Officer C/O FIRST SOLAR, INC., 350 WEST WASHINGTON ST., SUITE 600, TEMPE AZ 85281
Kuntal Kumar Verma officer: Chief Mfg. Engineering Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Alexander R. Bradley officer: Chief Financial Officer 77 RIO ROBLES, SAN JOSE CA 95134
Markus Gloeckler officer: Co-Chief Technology Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
R Craig Kennedy director 1844 "R" STREET, NW, WASHINGTON DC 20009
Mark R Widmar officer: Chief Financial Officer C/O GRAFTECH INTERNATIONAL LTD, 12900 SNOW ROAD, PARMA OH 44130
Michael T Sweeney director GOLDNER HAWN, 3700 WELLS FARGO CENTER, 90 SOUTH 7TH ST, MINNEAPOLIS MN 55402
William J Post director 400 NORTH FIFTH STREET, ., PHOENIX AZ 85004
Paul H Stebbins director C/O WORLD FUEL SERVICES CORP, 9800 N.W. 41ST STREET, SUITE 400, MIAMI FL 33178
Byron Michael Jeffers officer: CAO, Interim 350 WEST WASHINGTON ST., TEMPE AZ 85281
Richard D Chapman director 350 WEST WASHINGTON STREET, SUITE 600, TEMPE AZ 85281
Jason E. Dymbort officer: General Counsel, Interim 77 RIO ROBLES, SAN JOSE CA 95134
Norman L. Wright director 26335 N. 104TH WAY, SCOTTSDALE AZ 85255
Patrick James Buehler officer: Chief Quality and Rel. Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551
Michael Koralewski officer: Chief Mfg. Operations Officer 28101 CEDAR PARK BLVD., PERRYSBURG OH 43551