Canadian Solar Inc. (NASDAQ:CSIQ) is a prominent player in the solar energy sector, known for its solar photovoltaic modules and energy storage solutions. The company operates globally, with a strong presence in both the manufacturing and project development segments. It faces competition from other solar companies like First Solar and SunPower.
On March 25, 2025, CSIQ is set to release its quarterly earnings. Wall Street estimates the earnings per share to be -$0.21, while analysts anticipate a more optimistic figure of $0.11 per share. This would mark a significant improvement from the previous year's loss of $0.02 per share. The revenue is projected to be approximately $1.57 billion, slightly down from $1.7 billion in the same period last year.
Despite the positive outlook on earnings, Canadian Solar's shares recently experienced a decline of 1.9%, closing at $9.96. This drop comes amid the company's announcement of securing Battery Supply Agreements and Long-Term Service Agreements for two major battery energy storage projects in the United States, developed by Aypa Power.
Canadian Solar's financial metrics reveal a mixed picture. The company has a high price-to-earnings (P/E) ratio of 576.25, indicating a high valuation relative to its earnings. However, its price-to-sales ratio is 0.10, suggesting that the market values its sales at a relatively low level. The enterprise value to sales ratio is 0.72, while the enterprise value to operating cash flow ratio is negative at -5.84, indicating potential challenges in cash flow generation.
The company's earnings yield is 0.17%, reflecting a low return on investment relative to its share price. With a debt-to-equity ratio of 2.08, Canadian Solar Inc. has a significant level of debt compared to its equity. The current ratio is 1.06, suggesting that the company has a slightly higher level of current assets compared to its current liabilities, indicating a modest level of short-term financial health.
