Please ensure Javascript is enabled for purposes of website accessibility

First Solar, Inc. Thinks These Are 3 of Its Biggest Risks

By Justin Loiseau - Sep 4, 2015 at 2:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

You'll never guess what First Solar, Inc. thinks its biggest risks are.

First Solar, (FSLR -1.45%) is one of the largest PV solar panel manufacturers in the world . With $3.4 billion in sales for fiscal 2014, it is both the brains and brawn behind some of the largest solar farms on earth. It designs and constructs utility-scale solar projects and sells them off to the highest bidder, often with a deal to continue operations and maintenance for 20 years or more.

Rather than rely on fancy zero-money-down lease options for individual residential rooftop users, First Solar, claims its entirely vertical operations make it the most competitive. From start to finish, First Solar, is there to ensure quality and keep costs low. 

Over the past nine years, First Solar, has enjoyed major expansion. The corporation has 30  manufacturing lines around the world collectively capable of pushing out 70,000  modules each day, equivalent to 2,700  MW worth of solar panels every year.

But First Solar's size doesn't make it invincible, and the company faces risks just like any other investment. The solar industry world is changing fast, and corporations that were leading the world one year could see sales slide and profits plummet the next year. In every annual 10-K SEC filing, corporations have to list their biggest risks. Here are three of the biggest risks First Solar, thinks it (and its shareholders) has to handle.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

First Solar, Inc. Stock Quote
First Solar, Inc.
FSLR
$63.32 (-1.45%) $0.93
SunPower Corporation Stock Quote
SunPower Corporation
SPWR
$15.44 (1.51%) $0.23
SunEdison, Inc. Stock Quote
SunEdison, Inc.
SUNEQ

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.