Canadian Solar: Shining Bright

Canadian Solar (CSIQ) is shining brightly these days. The entire sector is performing well and CSIQ is no exception. The earnings estimates trend is solidly bullish for CSIQ. Over the past week, this year's estimates have increased four cents to $1.60 per share. Analysts expect a huge 74.1% jump in earnings next year to $2.79 per share.

Full Analysis

Canadian Solar, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of solar module products that convert sunlight into electricity for various uses. Its products include a range of standard solar modules to general specifications for use in various residential, commercial, and industrial solar power generation systems.

The company also designs and produces specialty solar modules and products based on customers' requirements. Its specialty solar modules and products consist of customized modules that its customers incorporate into their own products, such as solar-powered bus stop lighting, and complete specialty products, such as solar-powered car battery chargers.

CSIQ's operating strategy is to pursue a balanced and diversified supply channel mix by entering into long-term supply contracts and toll manufacturing arrangements in addition to in-house solar cell, wafer and ingot manufacturing. Solar modules, which are an array of interconnected solar cells encased in a weatherproof frame, use solar cells as a primary component.

In the current market environment, a couple of factors are causing high prices for solar modules, such as an industry-wide shortage of silicon (a primary constituent of solar cells) and higher demand caused by the expansion of the solar power and semiconductor industries.

CSIQ successfully completed the installation of four of its 25MW in-house solar cell production lines. With conversion efficiency steadily improving, the company opened its first commercial production in April 2007. This resulted in CSIQ having 100MW of in-house solar cell production capacity in place.

The earnings estimates trend is solidly bullish for CSIQ. Over the past week, this year's estimates have increased four cents to $1.60 per share. Analysts expect a huge 74.1% jump in earnings next year to $2.79 per share. The most accurate estimate shows 16.3% upside for the current year as well. The stock is attractively priced too with a PEG ratio of 1.0.

Comments

[absurd]

Is there a point to this "article" other than pumping CSIQ, which is overpriced even at 20?

[West1]

A fast growing company that just doubled the Q1 earnings estimates, with a revised 2008 estimated EPS of $2.35, is "overpriced even at 20", huh?

[buystocks]

CSIQ will be the one in 2009, I am long with it. And they the fastest growing solar company expect to produce more than 500mw in 2009. However, I am worried about the abillity for them to expand further since they are having a lot of debt.

[joe121]

all solar stocks just go down. true as true can be

[buystocks]

I will bet it will got up for at least 5% tomorrow. another 8% on Monday after TSL report they earning.

[buystocks]

Those companies have the earnings, I don't see any reasons their stock will drop. In the coming year, they will have doubled their capacity to satisfy the market need.