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First Solar or Canadian Solar: Which Stock Stands Out in the Solar Boom?
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Key Takeaways
FSLR began operations at a fourth U.S. plant and targets 25 GW annual output with a fifth facility by 2026.
FSLR has $19.8B in contracts through 2030 and cash reserves exceeding its total debt.
CSIQ posted a Q1 loss of $34M, faces rising U.S. tariffs and holds more debt than cash on hand.
With global investments in clean energy on the rise, solar power has become one of the fastest-growing sources of electricity. This growing momentum is creating new opportunities for leading solar companies like First Solar ((FSLR - Free Report) ) and Canadian Solar ((CSIQ - Free Report) ). As interest in renewable energy expands, both companies present strong but distinct cases for investment.
U.S.-based First Solar is known for its advanced thin-film photovoltaic solar modules. It focuses primarily on large-scale utility projects. On the other hand, Canada-based Canadian Solar produces crystalline silicon panels and is also active in utility-scale solar and energy storage development.
As solar power capacity grows rapidly across the globe, investors are paying close attention to key players in the sector and might be wondering which one among FSLR and CSIQ offers better prospects. Let’s dive deep to get the answer.
Key Takeaways for FSLR
Recent Achievements: First Solar recently made notable progress in expanding its manufacturing footprint and securing long-term business. In the second quarter of 2025, the company began commercial operations at its fourth manufacturing facility in the United States. It is also working on a fifth U.S. facility, expected to become operational in the second half of 2025. With this addition, First Solar aims to reach an annual production capacity of more than 25 gigawatts (GW) by the end of 2026.
As of March 2025, FSLR had signed contracts to deliver 66.1 GW of modules, valued at $19.8 billion. The company expects to recognize these revenues through 2030, ensuring a stable and growing income stream in the years ahead.
Financial Stability: First Solar’s cash and cash equivalents as of March 31, 2025, totaled $891 million. Its long-term debt as of March 31, 2025, amounted to $328 million, and the current debt level was $197 million. Therefore, the stock’s cash reserve was much higher than the long-term and current debt levels. So, we may safely conclude that First Solar boasts a strong solvency position.
Challenges to Note: First Solar has raised concerns about the growing production capacity among solar module manufacturers, particularly in China, where around 270 GW of capacity is expected to be added in 2024 alone. This sharp increase could lead to an oversupply of modules, leading their prices to drop. If competitors start selling their products at very low prices, even below what it costs to make them, First Solar could be forced to lower its prices too, which would hurt its profits.
Additionally, the company has discovered manufacturing defects in some of its Series 7 modules produced during 2023 and 2024. These issues could lead to premature power degradation once the modules are deployed. Based on the current assessment, First Solar estimates the total impact of these defects could range from $56 million to $100 million, which may negatively affect its near-term operating performance.
Key Takeaways for CSIQ
Recent Achievements: Among Canadian Solar’s recent achievements, worth mentioning is its subsidiary, Recurrent Energy, securing $260 million in financing for its Blue Moon Solar project in Kentucky, in July 2025. This 94-megawatt (MW) project marks the company’s first solar venture in the state and is expected to begin operations in 2026.
In the same month, Recurrent Energy successfully brought its Papago Storage facility online, which offers 1200 megawatt-hours (MWh) of battery storage capacity.
In June, CSIQ’s e-STORAGE division achieved a key milestone when its SolBank 3.0 battery system passed a large-scale fire safety test.
Financial Stability: Canadian Solar’s cash and cash equivalents (along with restricted cash) totaled $2.02 billion as of March 31, 2025, down sequentially. Meanwhile, its current debt of $2.92 billion, as well as ong-term debt of $3.22 billion, came in higher than the cash balance. Hence, we may conclude that the stock holds a weak solvency position, which might limit its ability to meet its investment target for expanding its manufacturing facilities.
Challenges to Note: Canadian Solar continues to face pressure from global oversupply, especially as Chinese manufacturers flood the market with low-cost modules. This has led to falling prices and tighter margins, contributing to its net loss of $34 million in the first quarter of 2025, due to weaker storage profits and tariff costs.
Ongoing trade tensions, particularly between America and China, might further complicate operations. New U.S. tariffs on imports from China and Southeast Asia, where Canadian Solar manufactures most of its products, are expected to raise costs and hurt revenues.
How do Estimates Compare for FSLR & CSIQ?
The Zacks Consensus Estimate for First Solar’s 2025 sales and earnings per share (EPS) implies an improvement of 18.5% and 23.2%, respectively, from the year-ago quarter’s reported figures. The stock’s 2025 and 2026 EPS estimates have also improved over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Canadian Solar’s 2025 sales implies a year-over-year improvement of 4.3%. However, the consensus mark for its loss per share is pinned at $1.74 per share, suggesting a deterioration from the year-ago reported loss of $1.45. The stock’s bottom-line estimates for 2025 have also been trending southward over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: FSLR vs CSIQ
FSLR (down 18%) has outperformed CSIQ (down 25.1%) over the past year.
Image Source: Zacks Investment Research
Valuation of Canadian Solar More Attractive Than First Solar
First Solar is trading at a forward sales multiple of 3.46X, below its median of 3.54X over the past year and Canadian Solar’s forward sales multiple of 0.11X. CSIQ’s forward earnings multiple has remained above its median of 0.10X over the past year.
Image Source: Zacks Investment Research
Final Call
While both First Solar and Canadian Solar are promising solar players, the former shows better prospects in the near term. This is because FSLR presents more financial stability and robust earnings generation opportunities than CSIQ, despite trading at a premium in terms of price/sales.
FSLR currently carries a Zacks Rank #3 (Hold), while Canadian Solar holds a Zacks Rank #4 (Sell).
Image: Shutterstock
First Solar or Canadian Solar: Which Stock Stands Out in the Solar Boom?
Key Takeaways
With global investments in clean energy on the rise, solar power has become one of the fastest-growing sources of electricity. This growing momentum is creating new opportunities for leading solar companies like First Solar ((FSLR - Free Report) ) and Canadian Solar ((CSIQ - Free Report) ). As interest in renewable energy expands, both companies present strong but distinct cases for investment.
U.S.-based First Solar is known for its advanced thin-film photovoltaic solar modules. It focuses primarily on large-scale utility projects. On the other hand, Canada-based Canadian Solar produces crystalline silicon panels and is also active in utility-scale solar and energy storage development.
As solar power capacity grows rapidly across the globe, investors are paying close attention to key players in the sector and might be wondering which one among FSLR and CSIQ offers better prospects. Let’s dive deep to get the answer.
Key Takeaways for FSLR
Recent Achievements: First Solar recently made notable progress in expanding its manufacturing footprint and securing long-term business. In the second quarter of 2025, the company began commercial operations at its fourth manufacturing facility in the United States. It is also working on a fifth U.S. facility, expected to become operational in the second half of 2025. With this addition, First Solar aims to reach an annual production capacity of more than 25 gigawatts (GW) by the end of 2026.
As of March 2025, FSLR had signed contracts to deliver 66.1 GW of modules, valued at $19.8 billion. The company expects to recognize these revenues through 2030, ensuring a stable and growing income stream in the years ahead.
Financial Stability: First Solar’s cash and cash equivalents as of March 31, 2025, totaled $891 million. Its long-term debt as of March 31, 2025, amounted to $328 million, and the current debt level was $197 million. Therefore, the stock’s cash reserve was much higher than the long-term and current debt levels. So, we may safely conclude that First Solar boasts a strong solvency position.
Challenges to Note: First Solar has raised concerns about the growing production capacity among solar module manufacturers, particularly in China, where around 270 GW of capacity is expected to be added in 2024 alone. This sharp increase could lead to an oversupply of modules, leading their prices to drop. If competitors start selling their products at very low prices, even below what it costs to make them, First Solar could be forced to lower its prices too, which would hurt its profits.
Additionally, the company has discovered manufacturing defects in some of its Series 7 modules produced during 2023 and 2024. These issues could lead to premature power degradation once the modules are deployed. Based on the current assessment, First Solar estimates the total impact of these defects could range from $56 million to $100 million, which may negatively affect its near-term operating performance.
Key Takeaways for CSIQ
Recent Achievements: Among Canadian Solar’s recent achievements, worth mentioning is its subsidiary, Recurrent Energy, securing $260 million in financing for its Blue Moon Solar project in Kentucky, in July 2025. This 94-megawatt (MW) project marks the company’s first solar venture in the state and is expected to begin operations in 2026.
In the same month, Recurrent Energy successfully brought its Papago Storage facility online, which offers 1200 megawatt-hours (MWh) of battery storage capacity.
In June, CSIQ’s e-STORAGE division achieved a key milestone when its SolBank 3.0 battery system passed a large-scale fire safety test.
Financial Stability: Canadian Solar’s cash and cash equivalents (along with restricted cash) totaled $2.02 billion as of March 31, 2025, down sequentially. Meanwhile, its current debt of $2.92 billion, as well as ong-term debt of $3.22 billion, came in higher than the cash balance. Hence, we may conclude that the stock holds a weak solvency position, which might limit its ability to meet its investment target for expanding its manufacturing facilities.
Challenges to Note: Canadian Solar continues to face pressure from global oversupply, especially as Chinese manufacturers flood the market with low-cost modules. This has led to falling prices and tighter margins, contributing to its net loss of $34 million in the first quarter of 2025, due to weaker storage profits and tariff costs.
Ongoing trade tensions, particularly between America and China, might further complicate operations. New U.S. tariffs on imports from China and Southeast Asia, where Canadian Solar manufactures most of its products, are expected to raise costs and hurt revenues.
How do Estimates Compare for FSLR & CSIQ?
The Zacks Consensus Estimate for First Solar’s 2025 sales and earnings per share (EPS) implies an improvement of 18.5% and 23.2%, respectively, from the year-ago quarter’s reported figures. The stock’s 2025 and 2026 EPS estimates have also improved over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Canadian Solar’s 2025 sales implies a year-over-year improvement of 4.3%. However, the consensus mark for its loss per share is pinned at $1.74 per share, suggesting a deterioration from the year-ago reported loss of $1.45. The stock’s bottom-line estimates for 2025 have also been trending southward over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: FSLR vs CSIQ
FSLR (down 18%) has outperformed CSIQ (down 25.1%) over the past year.
Image Source: Zacks Investment Research
Valuation of Canadian Solar More Attractive Than First Solar
First Solar is trading at a forward sales multiple of 3.46X, below its median of 3.54X over the past year and Canadian Solar’s forward sales multiple of 0.11X. CSIQ’s forward earnings multiple has remained above its median of 0.10X over the past year.
Image Source: Zacks Investment Research
Final Call
While both First Solar and Canadian Solar are promising solar players, the former shows better prospects in the near term. This is because FSLR presents more financial stability and robust earnings generation opportunities than CSIQ, despite trading at a premium in terms of price/sales.
FSLR currently carries a Zacks Rank #3 (Hold), while Canadian Solar holds a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.