BUY: Canadian Solar Inc

Canadian Solar Inc. [NASDAQ:CSIQ] [$22.38] P/E 7.07 Overview

  • –  A Canadian energy company that designs and produces solar panels & products for residential, commercial and industrial uses.
  • –  One of the largest solar companies by market cap [1.3bn] and one of the few companies of its size in the industry that is currently profitable.
  • –  Operate globally over six continents in countries including The USA, Germany, China, India & South Africa.
  • –  They are vertically-integrated and manufacture everything from individual solar cells through to specialized off-grid home application systems.

    Financials

  • –  Modestly valued with a P/E of just 7.07 despite future growth prospects. –

  • –  ROE of 12.8 (I think? Calculated using annual total liabilities & shareholders equity / net income).
  • –  Debt ratio of 0.76.

    Growth Prospects / News

  • –  $26 million Solar Project Bond in Japan. (http://www.streetinsider.com/Corporate+News/Canadian+Solar+(CSIQ)+to+Issue+~$26M+Solar+P roject+Bond+in+Japan/11354756.html)
  • –  Secured $300 million credit in China .(http://cleantechnica.com/2016/02/22/canadian-solar- secures-300-million-credit-ping-bank/)
  • –  $70m secured for new production facility in Vietnam .(http://tuoitrenews.vn/business/33049/canadian-solar-strikes-70mn-deal-over-vietnam-facility)

    Main Concerns

  • –  Low oil prices could dampen demand for solar panels.
  • –  Relatively high debt ratio and continuing to borrow.
  • –  Very thin profit margins.

52wk range of 14.16 – 40.08 (currently 22.38).

Decreasing debt and increasing assets, increasing net income and profit margin.

Last quarter they had a net income of $30.76 million, down annually from $108.44 million Q3 2014

but up from $18.16 million Q2 2015.

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