Every growth investor should know about solar industry and their amazing perspectives in the future. The solar industry is projected to grow at a CAGR of over 19% through 2020. The technology is approaching and may have reached grid parity in many countries / climates. One of the best companies of this industry for investors now is First Solar The company overview. First Solar is a leading global provider of comprehensive photovoltaic (PV) solar energy solutions. The company is a vertically integrated utility-scale solar provider. It produces its own Cadmium Telluride (CdTe) thin-film PV cells and offers installation, utility-scale construction, and maintenance services. Thin film PV cells are second generation cells that contain active layer deposits ranging from a few nanometers to tens of micrometers thick. This is a pointedly thinner active layer of PV material than its first-generation counterparts, allowing for faster manufacturing times that significantly decrease costs of production and the energy payback period (source). To easily understand the financial performance, let look at the indicators in previous years. In 2014 EPS of "FSLR" was 3.91$ and generated 681 million of Cash Flow, which were higher than it was predicted.Solar Energy as an energy segment are continuing to grow, the main reason of it is the decreasing in price on photovoltaic system which is currently worth lower than the retail price of electricity. This drop in cost will open the new possibility to develop a photovoltaic system in some locations with limited or no financial incentives. Let select the main financial indicators: * The net sales in 2014 was one and a half percent higher than in 2010 (3 391 814 and 2 563 515 (respectively). Of course it will give some points that demand on Solar Energy increased during all of this period. The increase was driven by higher systems, business project revenue, partially offset by lower third-party module net sales. * Gross profit decreased from 24.4% in 2014 to 26.1% in 2013 (by 1.7 percentage), but it could be explained of lower gross profit projects sold and an adjustment for lower estimated recycling costs recorded in 2013. * The higher return from costs. For example the solar modules become more effective. The average conversion efficiency of solar modules increased by 0.8 percentage and consisted of 14.0% compared with 2013 and its 13.2% of conversion efficiency. * Cash provided by operating activities decreased from $856.1 million during 2013 to $681.0 million in 2014. In 2014 FSRL received lower cash from customers, as compared to 2013. However, decreases in accounts receivable could be explained by cash collections on various large projects as well as cash collections related to module-only sales to third-party customers. However, total cash increased on about 230 million compared with 2013. Next let compare “FSLR” with the industry and some competitors to predict the future opportunities for the company and then will try to summarize this information to determine our position on that is it worth to invest. For calculating fair value we used P/S valuation method. This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations. So it is quite conservative measure in this case. It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If we look at this table, we will easily could find that “FSLR” P/E less than in the industry median, which equals to the 18,8. The P/E equal to 10.29 also gives us some expectation about future growth of the company, as the company now undervalued. Moreover, the total fair value of 94.65$ compared with the market value of only 57,7$ should also attract us to invest in this company. So the final indicator will summarize our prediction and give us positive Margin of Safety of 39%. We see strong growth prospects for the company due primarily to three factors, showing a lot of improvements, continuing to have a major hold on the USA market and expanding internationally. 1) The company show a lot of improvements. The average efficiency improved to 15.8%, and the lead line efficiency averaged at 16.4%. First Solar is aiming to achieve energy density levels equivalent to multi crystalline Chinese solar panels by the end of 2015. First Solar is being able to sell solar panels to outside parties, besides using them in its own projects. Earlier, the company sold panels to its own system division, as its panels had become less competitive due to low efficiency and high prices. Therefore, new booking/agreements have grown at a much faster pace. The company achieved new bookings to the tune of 1.7 GW for Q3'15, with YTD bookings now standing at 3.1 GW. More than 1 GW of these projects are in the USA and are estimated to commence after 2016, indicating utility-scale solar demand is strong beyond 2016 as well (when ITC expires). The company has fully contracted its 2016 volumes of 2 GW. First Solar also announced ~130 MW of new solar power purchase agreements and a 400 MW module sales agreement. The company believes these utility-scale solar projects will attract investor attention, thus driving down the total cost of capital. 2) First Solar is continuing to have a major hold on the USA market. In Texas with Austin Energy the first ever large-scale PPA has been signed. First Solar is also looking at other states like Georgia, Mississippi and Tennessee. We don't see any problems the company would face in expanding as it surprised the power industry after it made a bid at less than 4 cents/kWh for 1.2 GW of solar power. First Solar has signed EPC agreements for three projects in Indiana with American Electric Power (NYSE:AEP). 3) We see strong growth prospect in expanding internationally, though the company has a significant presence in USA, it is now trying to expand internationally as well. India and Latin America already have made for a large portion of the international bookings. The pace is slow at present, though international bookings constitute 85% of the potential mid-to-late stage bookings. We believe geographical diversification away from USA will not only help First Solar to grow internationally, but will also shield the company from the adverse effects of the investment tax credit expiry by 2016 end. In conclusion, we am strongly recommending to BUY “FSRL” stocks. There are many reasons for doing it which we have explained above. As can be seen from statistics on this topic, “FSLR” has the opportunity to grow in the future, this stock is undervalued now. The main factors of growth, of course as mentioned above, there are increasing in efficiency of modules it will help “FSRL” increase the amount of costumers and increasing in booking opportunity by a decent margin by moving in such market as India.