A Few Great Reasons to Buy Canadian Solar

2015 was a dreadful year for the solar industry, as most companies were in the red. However, Canadian Solar (CSIQ) was one of the exceptions as it was up around 20 percent. Project development and the module manufacturing business are the two most significant factors that are responsible for the success of Canadian Solar.

Canadian Solar and First Solar (FSLR) are the two best solar stocks in the market, as they are conventionally managed and  their strategies include a substantial capacity development plan.
Canadian Solar is intensifying its manufacturing capacity to meet the anticipated strong growth in demand for the company’s solar products worldwide.

Furthermore, Canadian Solar is enduring to make noticeable progress in the build out of their overall solutions or entire energy business, comprising 398 MW of solar plants in action, a late-stage project pipeline adding together 2.0 GW in implementation, and an initial stage project pipeline of 8.3 GW in progress, 2.6 GW of which is in the United States and will advantage from the latest ITC extension.

Apart from this, Canadian Solar’s solar projects will sooner or later be monetized either via a yieldco, direct sales or a blend of the both. On the other hand, the company formerly filed a yieldco registration report. Although the yieldco market is not stable at this particular moment, the company’s management remains flexible and will continue selling projects as it has done in the past.

Canadian Solar’s solar power plant properties in OECD countries are projected to touch 1.1 GW by the end of this year. The company’s management believes that the resale value of these properties is approximately $2.5 billion. Moreover, it is projected that electricity revenue from these solar power plants, on a yearly run-rate basis, will be roughly $160-$170 million at the end of this year.

It is crystal clear that the top-line will be considerably higher than its reported guidance if Canadian Solar chooses to sell some of its solar plants.


The primary reason why I like both Canadian Solar and First Solar is that they are profitable. Profitability has been a big issue when it comes to the solar sector and both these companies have defied the loss-making trend.

Going forward, Canadian Solar has many tailwinds that should boost its top line and bottom line, thereby making it one of my favorite picks in the solar industry.
Published on Apr 27, 2016
By Prudent Investor

Copyrighted 2020. Content published with author's permission.

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