What's Powering First Solar's Stock Value

First Solar
First Solar

First Solar

recently announced an agreement with a Chinese firm to look for solar power opportunities in the U.S. In evaluating its deal with China Power International New Energy Holding Ltd., we take a quick look below at the three main business divisions driving First Solar. The company competes with industry players like SunPower, Suntech Power and Yingli Green Energy Holding Co. Ltd.

We have a price estimate of $144 for First Solar's stock, which is about 10% above the stock's current market price.

Three Important Business Divisions for First Solar

1) International Photovoltaic Modules – represents 61% of the company's stock value

The International PV Modules division represents the company's component sales outside Germany and the U.S. The components segment involves the design, manufacture and sale of solar modules which convert sunlight into electricity.

Historically, a bulk of the sales for this business has been in Italy, France and Spain. But First Solar lately has taken its business to China, India, Australia and the Middle East, which are likely to become major markets for solar components.

See the top forecasts for the International PV Modules division

2) United States Photovoltaic Modules - 19%

The U.S. PV Modules division represents the company's component sales in the U.S. The division had sales of 225 megawatts in 2010, which is expected to quadruple in the next five years on the back of the increased focus on renewable energy sources by the U.S. government.

See the top forecasts for the United States PV Modules division

3) Germany Photovoltaic Modules - 14%

The Germany PV Modules division represents the company's component sales in Germany. The country has contributed to more than 50% of the company's total module sales in the past, although its share has ebbed due to the company's geographical diversification. This division had sales of around 700 MW in 2009 and 2010.

See the top forecasts for the Germany PV Modules division

See our full analysis for First Solar here stock here

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Originally published