First Solar Stock: Still Providing Plenty Of Downside Risk (NASDAQ:FSLR)

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First Solar (FSLR) is rated a “Sell” due to concerns over persistent backlog depletion, a fragile order book, and deteriorating cash flows, indicated by a book-to-bill ratio of 0.42 and ballooning inventories. The company’s reliance on government grants inflates current earnings, with a normalized forward P/E potentially rising to 46.5x as subsidies phase out. Despite seemingly attractive valuation multiples, FSLR presents significant downside risk from weak backlog and poor cash generation.

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