Canadian Solar Inc. Common Shares (ON) (CSIQ)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and sell at a sensible price. Canadian Solar fails the first test today. At the 2026-10-13 close of $11.21, market cap is $935.5M. The FairStock-calculated P/E is -2.92, P/B is 0.28, ROE is -5.97%, ROCE is 0.42%, and the given EPS is -$3.84. In fiscal Q2 2026, revenue was $1.2B, net income was -$76.9M, and margin was -6.36%. That is not a money-making machine. The balance sheet is levered: FairStock-calculated debt-to-equity is 1.72, Altman Z-Score is 0.24, and Piotroski F-Score is 2/9. Trailing free cash flow is -$1.6B, a FairStock-calculated FCF yield of -167.6% against market cap. The provided revenue growth is -9.92%, and while provided profit growth is 5.53%, the absolute level remains negative. Solar manufacturing is capital-intensive, competitive, and cyclical. Canadian Solar has scale and a Recurrent Energy project arm, but I see no durable moat in commodity modules. The price looks cheap on book value, but book value can evaporate when losses persist and cash burns. FairStock-calculated EV/EBITDA of 309.33 shows earnings are nearly nonexistent. The 52-week range of $10.34 to $34.59 tells the market has already repriced it sharply lower. The computed Lynch category is none, because there are only 0 years of filed results where 3 are needed, so I cannot classify it with confidence. As Graham might say, a low price is not the same as a margin of safety. Until returns on capital and free cash flow improve, this is a speculative turnaround, not a clear value investment.

In plain English: Canadian Solar makes solar panels and battery storage products and develops solar energy projects. The business looks weak right now: it is losing money, burning cash, and carries a lot of debt. The stock price looks low compared with its accounting value, but the weak earnings and cash losses make it hard to call it a true bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer