Canadian Solar Sees Carve-Out Delays And Dollar Tailwinds

Nov. 22, 2022 12:29 PM ETCanadian Solar Inc. (CSIQ)DNNGY, DOGEF, ERGZF4 Comments


  • Canadian Solar Inc. is planning on listing CSI Solar, which produces solar products and modules B2B and B2C, but delays are going to be long.
  • CSI Solar is benefiting especially hard from the dollar appreciations, which is reducing RMB denominated costs and increasing USD denominated ASPs.
  • On the energy side, the company is scaling its developments in an effort to become Ørsted-esque and achieve high renewable development multiples with utility economics too.
  • Canadian Solar has a good sense of the markets' appetite for renewable stocks, and once it scales up is likely to mature into higher EBITDAs as well as multiples.
  • With a lot of sink for investments, we think ROIs are going to be durably high, and value creation could be a lot more than a mature player. Undervalued company.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

olar panels photovoltaics in solar power station

Airubon/iStock via Getty Images

Canadian Solar Inc. (NASDAQ:CSIQ) just reported Q3 earnings, and while there are some extraordinary temporary tailwinds that are boosting earnings, specifically FX effects, growth is solid nonetheless. The business strategy shows that management is in tune with

CSI Solar

CSI Solar (PR Q3 2022)

CSI Energy

CSI Energy (PR Q3 2022)

CSI Solar pipeline

Solar Generation Pipeline (Q3 PR 2022)

renewable asset comps

Renewable Asset Comps ((VTS))

CSIQ storage

Storage Pipeline (Q3 2022 PR)

If you thought our angle on this company was interesting, you may want to check out our idea room, The Value Lab. We focus on long-only value ideas of interest to us, where we try to find international mispriced equities and target a portfolio yield of about 4%. We've done really well for ourselves over the last 5 years, but it took getting our hands dirty in international markets. If you are a value-investor, serious about protecting your wealth, our gang could help broaden your horizons and give some inspiration. Give our no-strings-attached free trial a try to see if it's for you.

This article was written by

Author of The Value Lab
A long-only voice with eclipsing growth through 2020 and 2022 bear markets.

Valkyrie Trading Society seeks to provide a consistent and honest voice through this blog and our Marketplace Service, the Value Lab, with a focus on high conviction and obscure developed market ideas.

DISCLOSURE: All of our articles and communications, including on the Value Lab, are only opinions and should not be treated as investment advice. We are not investment advisors. Consult an investment professional and take care to do your own due diligence.

DISCLOSURE: Some of Valkyrie's former and/or current members also have contributed individually or through shared accounts on Seeking Alpha. Currently: Guney Kaya contributes on his own now, and members have contributed on Mare Evidence Lab.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (4)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.