Canadian Solar (FRA:L5A) Moat Score: 4/10 (As of Jul. 14, 2026)

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FRA:L5A Canadian Solar Inc FRA:L5A
80 GF Score
Price €13.24
GF Value €13.20
Valuation Fairly Valued
! 9 Warning Signs
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What is Canadian Solar Moat Score?

Canadian Solar FRA:L5A +0.30% 80 Moat Score is 4 as of Jul. 14, 2026. GuruFocus rates FRA:L5A with a GF Score™ of 80/100 and a GF Value™ of €13.20 (Fairly Valued). The stock has 9 warning signs investors should review. Among 998 Semiconductors companies, Canadian Solar ranks better than 89.28% on this metric.

Canadian Solar has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Canadian Solar has Narrow Moat: Canadian Solar has a discernible moat from its economies of scale and technological expertise in solar manufacturing. However, the industry is highly competitive with low switching costs, limiting its competitive advantage to a modest level.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Canadian Solar might have Narrow Moat - Discernible but modest moat.

Canadian Solar  (FRA:L5A) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Canadian Solar Moat Score Related Terms

FRA:L5A vs ARRY, JKS, SHLS: Moat Score Comparison

For the Solar subindustry, Canadian Solar's Moat Score, along with its competitors' market caps and Moat 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.

Canadian Solar Moat Score vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Canadian Solar's Moat Score distribution charts can be found below:

* The bar in red indicates where Canadian Solar's Moat Score falls into.


FRA:L5A
80GF Score
Canadian Solar Inc FRA:L5A
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Canadian Solar (FRA:L5A) has a Moat Score of 4 as of Jul. 14, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Canadian Solar ranks #107 out of 998 companies in the Semiconductors industry, placing it in the top 10.7%.
Is Canadian Solar's Moat Score too high?
Canadian Solar's current Moat Score is 4. Based on the distribution chart, Canadian Solar ranks #107 out of 998 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Canadian Solar has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Canadian Solar's Moat Score compare to ARRY and JKS?
According to the Semiconductors industry distribution chart, Canadian Solar ranks #107 out of 998 companies for Moat Score. This places Canadian Solar in the top 11% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Semiconductors company?
A good Moat Score depends on the Semiconductors industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Canadian Solar's current Moat Score is 4. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canadian Solar stock overvalued right now?
Based on GuruFocus' analysis, Canadian Solar (FRA:L5A) is currently considered Fairly Valued. The stock's GF Value™ is €13.20, compared to a current price of €13.24 — trading 0.3% above its estimated fair value. The current Moat Score is 4. Canadian Solar's overall GF Score™ is 80/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Canadian Solar (FRA:L5A), the current Moat Score is 4 as of Jul. 14, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Canadian Solar (FRA:L5A) Overvalued in 2026?

Based on GuruFocus' analysis, Canadian Solar stock appears to be overvalued. The current stock price of €13.24 is trading 0.3% above its estimated GF Value™ of €13.20. GuruFocus considers Canadian Solar to be Fairly Valued.

Key valuation signals for FRA:L5A:

  • Moat Score: 4
  • GF Value™: €13.20 vs. price of €13.24 (0.3% above fair value)
  • GF Score™: 80/100 with 9 warning signs

No single metric tells the full story. See the FRA:L5A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Canadian Solar Business Description

Address 4273 King Street East, Suite 102, Kitchener, ON, CAN, N2P 2E9
Canadian Solar Inc is a Canadian solar technology and renewable energy company. It is a manufacturer of solar photovoltaic modules, a provider of battery energy storage solutions, and a developer of utility-scale solar power and battery energy storage projects. The company is organized in two segments: Manufacturing segment, comprising CS PowerTech, which focuses on manufacturing and sales of solar products, battery energy storage products, and other power technology products for the U.S. market and CSI Solar, which serves all other world-wide markets; and Recurrent Energy segment, which focuses on solar power and battery storage project development, asset sales, power services, and electricity revenue from its operating portfolio. It derives maximum revenue from Manufacturing segment.
80GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€13.24
Price
€13.20
GF Value