First SolarXSWX:FSLR -4.06%91 Return-on-Tangible-Equity is 14.33% as of Mar. 2026, which is 174% above its 10-year median of 5.23. GuruFocus rates XSWX:FSLR with a GF Score™ of 91/100 and a GF Value™ of CHF215.15. The stock has 4 warning signs investors should review. Among 985 Semiconductors companies, First Solar ranks better than 82.03% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. First Solar's annualized net income for the quarter that ended in Mar. 2026 was CHF1,092 Mil. First Solar's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF7,619 Mil. Therefore, First Solar's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.33%.
The historical rank and industry rank for First Solar's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:FSLR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.95 Med: 5.23 Max: 18.61
Current: 18.61
During the past 13 years, First Solar's highest Return-on-Tangible-Equity was 18.61%. The lowest was -7.95%. And the median was 5.23%.
XSWX:FSLR's Return-on-Tangible-Equity is ranked better than 82.03% of 985
companies
in the Semiconductors industry
Industry Median: 5.19
vs XSWX:FSLR: 18.61
First Solar (XSWX:FSLR) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
First Solar Return-on-Tangible-Equity Related Terms
First Solar Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for First Solar's Return-on-Tangible-Equity 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.
XSWX:FSLR vs NXT, ENPH, RUN: Return-on-Tangible-Equity Comparison
For the Solar subindustry, First Solar's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, First Solar's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where First Solar's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.33% mean?
First Solar (XSWX:FSLR) has a Return-on-Tangible-Equity of 14.33% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on First Solar and its competitors. This is 174% above median its historical median of 5.23. According to the industry distribution chart, First Solar ranks #177 out of 985 companies in the Semiconductors industry, placing it in the top 18%.
Is First Solar's Return-on-Tangible-Equity too high?
First Solar's current Return-on-Tangible-Equity of 14.33% is 174% above median its 10-year median of 5.23. The Semiconductors industry median Return-on-Tangible-Equity is 5.19. First Solar's value of 14.33% is 176.1% above this industry median. Based on the distribution chart, First Solar ranks #177 out of 985 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, First Solar has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does First Solar's Return-on-Tangible-Equity compare to NXT and ENPH?
According to the Semiconductors industry distribution chart, First Solar ranks #177 out of 985 companies for Return-on-Tangible-Equity. This places First Solar in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.19. First Solar's value of 14.33% is 176.1% above this benchmark. While the company's 10-year median is 5.23 vs. the industry median of 5.19, First Solar has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.19, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Solar's current Return-on-Tangible-Equity of 14.33% is 176.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on First Solar and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Solar's current Return-on-Tangible-Equity is 14.33%, which is 174% above median its own 10-year median of 5.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Solar stock overvalued right now?
First Solar (XSWX:FSLR) has a current Return-on-Tangible-Equity of 14.33%. The stock's GF Value™ is CHF215.15, compared to a current price of CHF188.33 — trading 12.5% below its estimated fair value. The current Return-on-Tangible-Equity is 14.33%, which is 174% above median its 10-year median of 5.23 and 176.1% above the Semiconductors industry median of 5.19. First Solar's overall GF Score™ is 91/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For First Solar (XSWX:FSLR), the current Return-on-Tangible-Equity is 14.33% as of Mar. 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 First Solar (XSWX:FSLR) Overvalued in 2026?
Based on GuruFocus' analysis, First Solar stock appears to be undervalued.
The current stock price of CHF188.33 is trading 12.5% below its estimated GF Value™ of CHF215.15.
Key valuation signals for XSWX:FSLR:
Return-on-Tangible-Equity: 14.33% (174% above median its 10-year median of 5.23)
GF Value™: CHF215.15 vs. price of CHF188.33 (12.5% below fair value)
Industry Position: 176.1% above the Semiconductors median (#177 of 985)
No single metric tells the full story. See the XSWX:FSLR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
91GF Score
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