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Canadian Solar Inc (CSIQ)
NASDAQ:CSIQ
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Canadian Solar
(NASDAQ:CSIQ)
53Neutral
Positive Factors
Earnings and Financial Performance
The E-STORAGE business has been executing well and exceeding expectations, which provides a partial margin offset.
Growth and Expansion
Canadian Solar's energy storage business is a growth engine that helps offset weaker solar margins and has taken market share due to strong solar customer relationships.
Investment and Capital
The Recurrent business benefits from a $500 million equity investment by BlackRock, supporting around 3 GW of solar development.
Negative Factors
Market and Competitive Challenges
Profitability is expected to deteriorate due to increasing competition and challenges in sourcing cells from countries not subject to tariffs.
Operational and Financial Challenges
Concerns exist that CSIQ could face liquidity issues as getting cash out of China is very difficult.
Tariffs and Trade Policies
The recent 145% China tariffs result in uncertainty and risk around the company's storage economics.
Canadian Solar (CSIQ) vs. S&P 500 (SPY)
Market Cap
$737.85M
Dividend YieldN/A
Average Volume (3M)2.22M
Price to Earnings (P/E)20.6
Beta (1Y)1.71
Revenue Growth-21.68%
EPS Growth-99.75%
CountryUS
Employees22,234
SectorTechnology
Sector Strength62
IndustrySolar
Share Statistics
EPS (TTM)0.54
Shares Outstanding66,174,920
10 Day Avg. Volume2,165,175
30 Day Avg. Volume2,221,849
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.09
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.29Price Target Upside10.22% Upside
Rating ConsensusHold
Number of Analyst Covering7
Canadian Solar Business Overview & Revenue Model
Company DescriptionCanadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power and battery storage products in Asia, the Americas, Europe, and internationally. The company operates through two segments, Canadian Solar Inc. (CSI) Solar and Global Energy. The CSI Solar segment offers standard solar modules and battery storage solutions, as well as solar system kits that are a ready-to-install packages comprising inverters, racking systems, and other accessories; and engineering, procurement, and construction (EPC) services. The Global Energy segment engages in the development, construction, maintenance, and sale of solar and battery storage projects; operation of solar power plants; and sale of electricity. This segment also provides operation and maintenance (O&M) services, including monitoring, inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar projects, as well as asset management services. As of January 31, 2021, this segment had a fleet of solar power plants in operation with an aggregate capacity of approximately 445 MWp. The company serves distributors, system integrators, project developers, and installers/EPC companies. It sells its products primarily under its Canadian Solar brand name; and on an OEM basis. The company was incorporated in 2001 and is headquartered in Guelph, Canada.
How the Company Makes MoneyCanadian Solar generates revenue primarily through two main business segments: module and system solutions, and energy. In the module and system solutions segment, the company earns money by manufacturing and selling solar modules, which are distributed globally to residential, commercial, and industrial customers. This segment also includes the provision of solar system kits and other solar-related products. In the energy segment, Canadian Solar develops, constructs, and sells solar power plants. It earns additional revenue by providing operations and maintenance services for these plants. The company also operates some of its solar power plants, generating income from the sale of electricity. Significant partnerships with governments, financial institutions, and utility companies worldwide help facilitate project development and expansion, further contributing to its earnings.
Canadian Solar Financial Statement Overview
Summary
Canadian Solar faces profitability and cash flow challenges, with a declining gross profit margin and a sharp decrease in net profit margin. Revenue and EBIT margin declines indicate operational pressures. The balance sheet shows significant leverage, with a high debt-to-equity ratio and low return on equity, despite a substantial cash reserve. Cash flow management issues are evident, with negative free cash flow growth and operational cash flow challenges.Income Statement
The income statement shows a moderate performance with a declining gross profit margin from 16.81% in 2023 to 16.12% TTM (Trailing-Twelve-Months). The net profit margin saw a sharp decline to 0.01% TTM from 3.60% in 2023, indicating profitability challenges. Revenue growth is negative, with a decrease of 18.89% from 2023 to TTM. The EBIT margin also decreased to 1.02% TTM, reflecting pressure on operational efficiency. However, EBITDA margin remains relatively stable at 6.76% TTM.70
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.08 TTM, suggesting significant leverage. Return on equity decreased to 0.03% TTM, indicating challenges in generating returns on equity. The equity ratio is relatively low at 20.85% TTM, showing moderate financial stability. Despite the high leverage, the company has a substantial cash reserve.60
Neutral
Cash Flow
The cash flow statement indicates deterioration, with free cash flow declining significantly. Free cash flow growth rate is negative at -205.14% TTM, and operating cash flow to net income ratio is negative, reflecting operational cash flow challenges. The free cash flow to net income ratio is also negative, highlighting cash flow management issues.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.17B | 7.61B | 7.47B | 5.28B | 3.48B | 3.20B | Gross Profit |
| 995.69M | 1.28B | 1.26B | 909.31M | 689.91M | 718.50M | EBIT |
| 63.13M | 453.32M | 356.06M | -81.34M | 20.62M | 111.19M | EBITDA |
| 417.19M | 829.66M | 675.15M | 494.31M | 423.51M | 439.62M | Net Income Common Stockholders |
| 762.00K | 274.19M | 239.97M | 95.25M | 146.70M | 171.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 290.83M | 1.96B | 981.43M | 869.83M | 1.18B | 668.77M | Total Assets |
| 1.42B | 11.90B | 9.04B | 7.39B | 6.54B | 5.47B | Total Debt |
| 620.85M | 4.48B | 4.01B | 3.26B | 2.81B | 2.42B | Net Debt |
| 332.20M | 2.54B | 3.03B | 2.39B | 1.63B | 1.75B | Total Liabilities |
| 888.38M | 8.19B | 6.73B | 5.26B | 4.64B | 4.04B | Stockholders Equity |
| 534.33M | 2.56B | 1.94B | 1.80B | 1.57B | 1.39B |
| Cash Flow | Free Cash Flow | ||||
| -2.57B | -840.85M | 288.63M | -837.75M | -455.48M | 308.93M | Operating Cash Flow |
| -760.71M | 684.62M | 916.63M | -408.25M | -120.54M | 600.11M | Investing Cash Flow |
| -1.82B | -1.67B | -630.49M | -429.57M | -319.66M | -294.10M | Financing Cash Flow |
| 2.41B | 2.05B | 428.64M | 614.07M | 823.50M | -34.61M |
Canadian Solar Technical Analysis
Positive
11.15
Price Trends
9.39
Positive
10.38
Positive
12.23
Negative
Market Momentum
-0.12
Negative
67.56
Neutral
81.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSIQ, the sentiment is Positive. The current price of 11.15 is above the 20-day moving average (MA) of 8.09, above the 50-day MA of 9.39, and below the 200-day MA of 12.23, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 67.56 is Neutral, neither overbought nor oversold. The STOCH value of 81.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSIQ.
Canadian Solar Risk Analysis
Canadian Solar disclosed 63 risk factors in its most recent earnings report. Canadian Solar reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Canadian Solar Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $13.50B | 10.48 | 17.62% | ― | 26.75% | 55.24% | |
69 Neutral | $910.76M | 109.85 | 0.29% | 16.76% | -11.91% | -87.40% | |
59 Neutral | $10.73B | 10.22 | -6.68% | 3.02% | 7.43% | -11.37% | |
53 Neutral | $737.85M | 20.61 | 1.34% | ― | -21.68% | -99.75% | |
53 Neutral | $1.67B | ― | -73.12% | ― | -9.83% | -71.44% | |
44 Neutral | $741.58M | ― | -116.01% | ― | -68.86% | -4917.87% | |
33 Underperform | $54.28M | ― | 307.38% | ― | -43.42% | -53.77% |
* Technology Sector Average
Performance Comparison
CSIQ
Canadian Solar
11.15
-5.29
-32.18%
FSLR
First Solar
141.86
-38.97
-21.55%
JKS
JinkoSolar
17.66
-5.26
-22.95%
SEDG
SolarEdge Technologies
12.56
-47.45
-79.07%
RUN
Sunrun
7.39
-3.33
-31.06%
MAXN
Maxeon Solar Technologies
3.55
-196.45
-98.22%
Canadian Solar Earnings Call Summary
Earnings Call Date: Mar 25, 2025 | % Change Since: 14.95% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a challenging year for Canadian Solar, with significant achievements in energy storage growth and strategic manufacturing expansions being offset by financial pressures from market downturns, tariff impacts, and asset impairments.Highlights
Record Energy Storage Growth
Energy storage shipments reached 6.6 GWh for the year, representing a more than 500% year-over-year increase.
Strategic U.S. Manufacturing Expansion
Continued progress on manufacturing facilities in Mesquite, Texas, and Jeffersonville, Indiana, to enhance domestic production capabilities.
Resilience in Challenging Market
Despite a difficult operating environment, Canadian Solar maintained relatively strong profitability and achieved $6.5 billion in full-year revenue with an 18.4% gross margin.
Strong Project Development and Execution
Successful execution with 1.3 GW of solar projects brought to commercial operation and a significant project pipeline of 25 GW of solar and 75 GWh of energy storage.
Lowlights
Lower-than-Expected Financial Performance
Fourth-quarter revenue was at the lower end of expectations, impacted by project delays and lower gross margins due to tariffs and inventory write-downs.
Continued Market Pressure and Tariffs
Significant tariff and duty impacts, particularly from AD/CVD and Section 201 duties, affecting margins on module shipments from Southeast Asia.
Project Impairments and Challenges
Impairments in manufacturing assets and project assets negatively impacted financial results, including a $65 million impairment related to PERC manufacturing assets.
Operational and Financial Headwinds
Global market downturn with structural overcapacity and intensified competition leading to financial pressures across the solar industry.
Company Guidance
During Canadian Solar's Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for the upcoming fiscal periods, emphasizing several key metrics. The first quarter of 2025 is expected to see module shipments between 6.4 and 6.7 gigawatts and energy storage deliveries of around 800 megawatt hours. Revenue projections for Q1 range from $1 billion to $1.2 billion, with a gross margin anticipated between 9% and 11%. For the full year of 2025, Canadian Solar reaffirmed its volume guidance, predicting module shipments of 30 to 35 gigawatts and energy storage shipments of 11 to 13 gigawatt hours, aiming for a total revenue between $7.3 billion and $8.3 billion. The company acknowledged ongoing challenges such as geopolitical uncertainties and market consolidation but expressed confidence in their strategic initiatives to enhance margins and leverage their US manufacturing capabilities.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.