First Solar Net Income vs. Gross Profit
| FSLR Stock | MXN 3,666 37.00 1.02% |
For First Solar profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Solar to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Solar utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Solar's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Solar over time as well as its relative position and ranking within its peers.
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First Solar Gross Profit vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining First Solar's current stock value. Our valuation model uses many indicators to compare First Solar value to that of its competitors to determine the firm's financial worth. First Solar is rated below average in net income category among its peers. It also is rated below average in gross profit category among its peers fabricating about 1.58 of Gross Profit per Net Income. Comparative valuation analysis is a catch-all model that can be used if you cannot value First Solar by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for First Solar's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.First Gross Profit vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
First Solar |
| = | 468.69 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
First Solar |
| = | 740.15 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
First Gross Profit Comparison
First Solar is rated below average in gross profit category among its peers.
First Solar Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in First Solar, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Solar will eventually generate negative long term returns. The profitability progress is the general direction of First Solar's change in net profit over the period of time. It can combine multiple indicators of First Solar, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
First Solar, Inc. provides photovoltaic solar energy solutions in the United States and internationally. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona. FIRST SOLAR operates under Solar classification in Mexico and is traded on Mexico Stock Exchange. It employs 6400 people.
First Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on First Solar. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of First Solar position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the First Solar's important profitability drivers and their relationship over time.
Use First Solar in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if First Solar position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Solar will appreciate offsetting losses from the drop in the long position's value.First Solar Pair Trading
First Solar Pair Trading Analysis
The ability to find closely correlated positions to First Solar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Solar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Solar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Solar to buy it.
The correlation of First Solar is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Solar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Solar moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for First Solar can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your First Solar position
In addition to having First Solar in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Baby Boomer Prospects Thematic Idea Now
Baby Boomer Prospects
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. The Baby Boomer Prospects theme has 99 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Baby Boomer Prospects Theme or any other thematic opportunities.
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Additional Tools for First Stock Analysis
When running First Solar's price analysis, check to measure First Solar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Solar is operating at the current time. Most of First Solar's value examination focuses on studying past and present price action to predict the probability of First Solar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Solar's price. Additionally, you may evaluate how the addition of First Solar to your portfolios can decrease your overall portfolio volatility.