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Fundamental analysis: Canadian Solar Inc. (CSIQ)

Awarener score: 5.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Lacking) and growth (Good), and the company's inclination to return cash to the stockholders (Poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

  • Business has been growing at a good pace. It's been substantially worse when measured against peer companies.
  • Canadian Solar Inc. business shows some variation, there's some risk. It looks somewhat better than rivals.

Margins score: 5.7

  • CSIQ profit margins -on goods and services sold- are usually meagre. They stand somewhat worse than rival companies.
  • Business profit on sales tends to be good. It's encouraging in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still slightly better than similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain encouraging in relation to rivals.
  • Total net profit tends to be sufficient when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 3.6

  • Canadian Solar Inc. profit -on goods and services sold- has been growing at a low pace. It's been in a weak position compared to competitors.
  • In recent years, earnings -on operations- have been shrinking, which has been worse than most comparable firms.
  • Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- tended to shrink. It turns to be in a very weak position compared to similar stocks.
  • In past years, profits -before income taxes- grew at a low speed. It was mediocre against rivals.
  • In the previous years, growth on total net profit has been low, and weak when measured against peer companies.
  • Earnings per share have grown at a very low rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 8.3

  • CSIQ had to pay sparse income taxes in relation to profits made in the past years. It's been mediocre against peers.
  • Research and development expenses hardly consume a portion of revenues. It's top tier when measured against competitors.
  • The company shows very good business growth in relation to research and development efforts. It stands in good shape compared to rival companies.

Profitability score: 7.0

  • Canadian Solar Inc. usually gets good returns on the resources it controls. It proves more than average in relation to peer firms.
  • The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
  • There's usually abundant profitability -in relation to owned resources-. It ranks great when measured against competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 4.0

  • CSIQ usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands more than average in relation to rival firms.
  • The relationship between capital expenditures and depreciation is not known, because of not enough inputs, which is a big question mark in relation to industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.4

  • Canadian Solar Inc. intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be encouraging in relation to peer companies.
  • The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a weak position compared to similar firms.
  • A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains mediocre against rival firms.
  • Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks similar to rivals.
  • For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is mediocre against similar enterprises.
  • Usually, sales are on slightly higher than two months credit. It still ranks similar to peers.
  • Normally has approximately four months of sales worth in inventory. It comes up as lacking compared to competitors.
  • On average, it takes higher than five months from the purchase to charging customers. It happens to be slightly worse than peers.
  • On average pays suppliers after a month and a half from the purchase. It ranks weak when measured against industry peers.
  • The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's close to average when compared to similar companies.
  • Net interest expenses consume a portion of usual business earnings, but are bearable. It stands slightly worse than rival firms.
  • Business earnings have usually been extremely low when measured against loans taken. Even severely cutting back reinvesting in the business, it could take more than twenty years to repay the obligations. Additional stockholders' funding may be a quicker way, but at the cost of increasing the mouths to feed on the eventual pie of profits. It ranks similar to comparable enterprises.
  • Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
  • Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 5.8

  • Canadian Solar Inc. looks heavily expensive in relation to profits and financial position. It happens to be almost average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains excellent in relation to peers.
  • In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
  • In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still almost average when measured against industry firms.
  • In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up close to average when compared to peer ventures.
  • The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks worse than most similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks encouraging in relation to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks excellent in relation to rival firms.
  • The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat better than peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still impressive in relation to peer companies.

Total score: 5.5


CSIQ logos

Company at a glance: Canadian Solar Inc. (CSIQ)

Sector, industry: Technology, Solar

Market Cap: 2.39 billions

Revenues TTM: 5.28 billions

Canadian 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.

Awarener score: 5.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Lacking) and growth (Good), and the company's inclination to return cash to the stockholders (Poor).