CSIQCanadian Solar shows strong thematic alignment with renewable energy growth, but recent financial performance and technical indicators suggest caution. Moderate growth potential with significant risks.
Canadian Solar is well-positioned to benefit from the global transition to renewable energy, driven by increased demand for solar and energy storage solutions.
While revenue has grown, profitability has been inconsistent, with recent quarters showing negative EPS estimates. The company carries a significant debt load.
The stock is in a downtrend across multiple timeframes, with key moving averages acting as resistance. Momentum indicators suggest bearish sentiment.
| Factor | Score |
|---|---|
| Renewable Energy Transition | 95 |
| Energy Storage Solutions | 88 |
| Geographic Diversification | 80 |
| Government Policies & Incentives | 85 |
| Supply Chain Volatility | 65 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 30 |
| Growth | 35 |
| Balance Sheet Health | 45 |
| Cash Flow | 20 |
| Factor | Score |
|---|---|
| Trend Analysis | 30 |
| Momentum | 50 |
| Volume Confirmation | 40 |
| Support & Resistance | 65 |
Improving EPS Trend
Recent EPS estimates and actuals show a positive trend with 3 out of the last 4 quarters beating estimates. The Q2 2025 estimate is for -$1.10 vs. actual -$1.07, showing a smaller than expected miss, and Q2 2024 actual EPS of $0.19 significantly beat the estimate of -$0.01.
Potential for Undervaluation
The stock has a Price-to-Sales (P/S) ratio of 0.2 (TTM), which is considerably lower than its 5-year average P/S of 0.3, suggesting it might be undervalued based on revenue generation.
Inconsistent Earnings and Negative EPS
The company has reported negative EPS (TTM) of -$0.34. Recent quarterly EPS performance is volatile, with significant misses in Q1 2025 (-$1.47 actual vs. $0.11 estimate) and Q4 2024 (-$0.21 actual vs. -$0.17 estimate).
High Price-to-Sales Ratio (Quarterly)
The current quarterly P/S ratio of 0.5 (Q1 2025) is higher than the TTM P/S of 0.2, indicating a potential increase in valuation based on expected future revenues.
August 2025
21
Next Earnings Date
H: $1.22
A: $0.87
L: $0.52
H: 2.09B
A: 1.90B
L: 1.63B
Canadian Solar Inc., together with its subsidiaries, provides solar energy and battery energy storage products and solutions in Asia, the Americas, Europe, and internationally. It operates through two segments, CSI Solar and Recurrent Energy. The CSI Solar segment designs, develops, and manufactures solar ingots, wafers, cells, modules, and other solar power and battery storage products. It also offers standard solar modules and battery storage solutions, solar system kits, such as splar modules, inverters, racking systems, and other accessories; power electronic products; and engineering, procurement, and construction (EPC) services, as well as operates battery energy storage projects. The Recurrent Energy segment engages in the development, construction, maintenance, and sale of solar power and battery energy storage projects; operates solar power plants; and sells electricity and related services. This segment 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. It has a fleet of solar and battery energy storage plants in operation with an aggregate capacity of approximately 3929 MWh. It serves distributors, system integrators, project developers, and installers/EPC companies. Additionally, it caters to utility companies, public utilities, licensed suppliers, corporate offtakers, and commercial, industrial, or government end users primarily under its Canadian Solar brand name. Canadian Solar Inc. was incorporated in 2001 and is based in Kitchener, Canada.
13.22 USD
The 39 analysts offering 1 year price forecasts for CSIQ have a max estimate of 23.00 and a min estimate of 7.00.