First Solar Stock Beneish M Score

FSLR Stock  USD 167.45  14.29  9.33%   
This module uses fundamental data of First Solar to approximate the value of its Beneish M Score. First Solar M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out First Solar Piotroski F Score and First Solar Altman Z Score analysis.
To learn how to invest in First Stock, please use our How to Invest in First Solar guide.
  
At this time, First Solar's Short and Long Term Debt Total is relatively stable compared to the past year. As of 03/28/2024, Short Term Debt is likely to grow to about 111.9 M, while Long Term Debt is likely to drop slightly above 290.2 M. At this time, First Solar's Operating Profit Margin is relatively stable compared to the past year. As of 03/28/2024, Company Equity Multiplier is likely to grow to 1.69, while Price To Sales Ratio is likely to drop 5.27.
At this time, it appears that First Solar is an unlikely manipulator. The earnings manipulation may begin if First Solar's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by First Solar executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of First Solar's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-19.33
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.52

Focus
Asset Quality

-0.62

Focus
Expense Coverage

1.85

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

1.85

Focus
Depreciation Resistance

1.77

Focus
Net Sales Growth

0.69

Focus
Financial Leverage Condition

52.48

Focus

First Solar Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if First Solar's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables1.5 B1.4 B
Sufficiently Up
Slightly volatile
Total Revenue2.3 B3.3 B
Way Down
Pretty Stable
Total Assets5.3 B10.4 B
Way Down
Slightly volatile
Total Current Assets2.5 B4.6 B
Way Down
Slightly volatile
Non Current Assets TotalB5.7 B
Sufficiently Up
Slightly volatile
Property Plant Equipment4.4 B4.2 B
Sufficiently Up
Slightly volatile
Selling General Administrative233.8 M183.3 M
Significantly Up
Pretty Stable
Total Current Liabilities813 M1.3 B
Way Down
Pretty Stable
Non Current Liabilities Total2.5 B2.4 B
Sufficiently Up
Slightly volatile
Short Term Debt111.9 M106.6 M
Sufficiently Up
Pretty Stable
Long Term Debt290.2 M464.1 M
Way Down
Very volatile
Short Term Investments147.7 M155.5 M
Notably Down
Slightly volatile
Long Term Investments2.4 M2.5 M
Notably Down
Slightly volatile
Gross Profit Margin0.410.3919
Sufficiently Up
Pretty Stable

First Solar Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between First Solar's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards First Solar in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find First Solar's degree of accounting gimmicks and manipulations.

About First Solar Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

176.81 Million

At this time, First Solar's Depreciation And Amortization is relatively stable compared to the past year.

First Solar Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as First Solar. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables658.5M292.5M454.7M355.0M1.4B1.5B
Total Revenue3.1B2.7B2.9B2.6B3.3B2.3B
Total Assets7.5B7.1B7.4B8.3B10.4B5.3B
Total Current Assets3.6B3.0B3.2B3.8B4.6B2.5B
Net Debt(881.0M)(947.8M)(1.2B)(1.3B)(1.3B)(1.3B)
Short Term Debt17.5M41.5M3.9M9.2M106.6M111.9M
Long Term Debt454.2M237.7M236.0M184.3M464.1M290.2M
Operating Income62.2M95.2M186.1M(216.3M)857.3M900.1M
Investments309.3M290.9M147.5M(1.2B)(869.7M)(826.2M)
Gross Profit Margin0.190.170.180.02670.390.41

About First Solar Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze First Solar's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of First Solar using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of First Solar based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
First Solar, Inc. provides photovoltaic solar energy solutions in the United State, Japan, France, Canada, India, Australia, and internationally. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona. First Solar operates under Solar classification in the United States and is traded on NASDAQ Exchange. It employs 4800 people.

First Solar Investors Sentiment

The influence of First Solar's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in First. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to First Solar's public news can be used to forecast risks associated with an investment in First. The trend in average sentiment can be used to explain how an investor holding First can time the market purely based on public headlines and social activities around First Solar. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
First Solar's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for First Solar's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average First Solar's news discussions. The higher the estimated score, the more favorable is the investor's outlook on First Solar.

First Solar Implied Volatility

    
  69.06  
First Solar's implied volatility exposes the market's sentiment of First Solar stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if First Solar's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that First Solar stock will not fluctuate a lot when First Solar's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards First Solar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, First Solar's short interest history, or implied volatility extrapolated from First Solar options trading.

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When determining whether First Solar is a strong investment it is important to analyze First Solar's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact First Solar's future performance. For an informed investment choice regarding First Stock, refer to the following important reports:
Check out First Solar Piotroski F Score and First Solar Altman Z Score analysis.
To learn how to invest in First Stock, please use our How to Invest in First Solar guide.
You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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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.
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Is First Solar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First Solar. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First Solar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
2.058
Earnings Share
7.73
Revenue Per Share
31.075
Quarterly Revenue Growth
0.156
Return On Assets
0.0595
The market value of First Solar is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Solar's value that differs from its market value or its book value, called intrinsic value, which is First Solar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First Solar's market value can be influenced by many factors that don't directly affect First Solar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First Solar's value and its price as these two are different measures arrived at by different means. Investors typically determine if First Solar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Solar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.