First Solar, Inc. (FSLR): fair value, margin of safety and Wheel Score

Is FSLR undervalued?

At 178.81 (close of 16 Oct 2026), FSLR trades 60% below the GLS average fair value of 446.96. That average comes from 7 models run on the latest filings, and 7 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns First Solar, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

There is a wide gap between EPV (180.53) and GLS Growth (994.69). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files FSLR under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for FSLR

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

First Solar, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability FSLR scores 6.7/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.

Returns on capital are high - ROIC 15.2%, ROE 16.0%, ROA 11.5% - with debt at 0.05 times equity and a free-cash-flow yield of 7.8%.

First Solar, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Solar Module 100% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 6/10 on the GLS smart-money scales; the last recorded Congressional buy was on 13 Aug 2026.

Wheel Score 91: Prime

With a Wheel Score of 91, First Solar, Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 18/20, Moat 10/15, Premium 20/20, Stability 18/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.

Implied volatility is 61% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (20 of 20) because volatility this high usually comes with a reason. The option chain is deep: 408,657 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 2.1M shares a day on a market cap of $19.2B, with a beta of 1.79 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 18 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

First Solar, Inc. reports earnings on 29 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Solar

The 12 companies below are the closest to First Solar, Inc. by market cap within the Solar industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare FSLR with 7 of them   All Energy stocks →