Canadian Solar Reports Second Quarter Earnings for FY2023
August 25, 2023
🌥️Earnings Overview
On August 22, CANADIAN SOLAR ($NASDAQ:CSIQ) announced their total revenue for the second quarter of fiscal year 2023 (ending June 30, 2023) as USD 2364.0 million, showing a 2.2% growth over the same period last year. Net income for the quarter was reported to be USD 170.0 million, up 128.3% from the same period in the preceding year.
Stock Price
The stock opened at $30.1 but closed at $26.8, which was a 12.9% plunge from the previous closing price of $30.8. In terms of the outlook for the coming quarters, Canadian Solar Inc. remains optimistic and expects to see an increase in total installed solar capacity during the coming months. The company also plans to continue its efforts to bring new projects on board and push for further growth in its solar energy business. The company’s outlook for the future also appears to be positive, and investors are hopeful that it will continue to see further growth and success in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Canadian Solar. More…
| Total Revenues | Net Income | Net Margin |
| 7.97k | 409.98 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Canadian Solar. More…
| Operations | Investing | Financing |
| 800.8 | -1.08k | 1.72k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Canadian Solar. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.2k | 7.76k | 37.86 |
Key Ratios Snapshot
Some of the financial key ratios for Canadian Solar are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 35.5% | 19.0% | 8.8% |
| FCF Margin | ROE | ROA |
| -3.2% | 19.4% | 3.9% |
Analysis
At GoodWhale, we conducted an analysis of CANADIAN SOLAR‘s finances. After analysis, we classified CANADIAN SOLAR as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. As such, investors looking for capital gains and excitement in their portfolios may be interested in such companies. Our evaluations of CANADIAN SOLAR ranks its health score at 4/10, indicating that it has good cashflows and debt, which suggests it may be able to safely ride out any crisis without the risk of bankruptcy. Additionally, CANADIAN SOLAR is strong in growth, medium in assets, profitability and weak in dividend. This can provide investors with an informed decision on their investments. More…
Peers
The global solar panel market is competitive with Canadian Solar Inc, SunPower Corp, First Solar Inc, and JinkoSolar Holding Co Ltd being the top competitors. These companies compete based on product quality, price, innovation, and brand. Canadian Solar Inc is a leading company in the solar panel industry and has a strong presence in Europe, Asia, North America, and South America.
– SunPower Corp ($NASDAQ:SPWR)
Solar Power Corporation has a market cap of 2.93B as of 2022, a Return on Equity of -24.76%. The company is a leading solar panel manufacturer and installer, providing solar power solutions for residential, commercial, and utility-scale customers. Solar Power Corporation has a strong history of innovation and has been a driving force in the solar industry for over two decades. The company has a strong financial position and is well-positioned to continue its leadership role in the solar industry.
– First Solar Inc ($NASDAQ:FSLR)
As of 2022, First Solar Inc has a market cap of 12.93B and a Return on Equity of 3.34%. First Solar is a US-based solar panel manufacturer. The company sells photovoltaic cells and modules to customers in the utility, commercial, and residential markets.
– JinkoSolar Holding Co Ltd ($NYSE:JKS)
JinkoSolar Holding Co., Ltd. engages in the manufacture and sale of solar power products. It operates through the following segments: Production, Sales, and Others. The Production segment includes the production of solar power products. The Sales segment comprises of domestic sales and international sales. The Others segment includes research and development activities. The company was founded on September 26, 2006 and is headquartered in Shanghai, China.
Summary
CANADIAN SOLAR’s second quarter financial results for the fiscal year 2023 indicate strong performance. Total revenue increased by 2.2% year-over-year to USD 2364 million, while net income surged by 128.3% to USD 170 million. Despite these strong results, the stock price dropped on the day of the announcement. Investors should further investigate the company’s fundamentals and competitive position, specifically in relation to other solar energy producers, before making any investment decisions.
Additionally, the company’s outlook for future quarters should be monitored to assess its long-term prospects.
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