Canadian Solar Inc. (CSIQ) AI Stock Analysis
CSIQ AI stock analysis summary
AI ResearchCanadian Solar Inc. (CSIQ) designs, manufactures, and sells solar power and battery storage products through its CSI Solar and Global Energy segments. Over the trailing twelve months, the company generated $4.99B in revenue with a net profit margin of -3.7% and an operating margin of -5.9%. With net debt standing at $5.85B and a 1-year stock decline of 37.3%, the company faces high leverage amid operational losses.
- Market cap
- $666.1M
- Revenue (TTM)
- $4.99B
- P/E
- — fwd 21.5x
- 1Y return
- -37.3% S&P 500 16.8%
- Avg. target
- $17.01 73.4% vs last close
Bull case
- Analysts maintain a mean price target of $17.01, representing a 73.4% premium over the last close of $9.81.
- Revenue is estimated to rebound 26.4% in the next fiscal year to reach $6.83B.
- The company trades at a price-to-sales multiple of 0.1x, well below the US-listed Technology peer median of 2.8x.
Bear case
- Net debt reached $5.85B as of June 30, 2026, resulting in a high debt-to-equity ratio of 2.65.
- The company burned cash in FY2025, generating -$252.7M in operating cash flow and -$1.64B in free cash flow.
- Revenue fell 28.7% year-over-year in the latest quarter ended June 30, 2026, contributing to a TTM operating margin of -5.9%.
What Canadian Solar does
Canadian Solar Inc. operates in the global solar energy industry, focusing on the design, development, manufacturing, and sale of solar power and battery storage products. Headquartered in Guelph, Canada, the company operates across Asia, the Americas, Europe, and other regions through two segments: Canadian Solar Inc. (CSI) Solar and Global Energy. CSI Solar provides standard solar modules, battery storage solutions, solar system kits, and engineering, procurement, and construction services. Global Energy develops, constructs, and maintains solar and battery storage projects worldwide, operates solar power plants, sells electricity, and delivers operation and maintenance, site management, and asset management services.
Growth and profitability
Canadian Solar achieved a 5-year revenue CAGR of 10.0% from FY2020 to FY2025, but recent annual performance shows top-line pressure. Revenue dropped from $7.61B in FY2023 to $5.99B in FY2024 and further decreased 6.6% to $5.60B in FY2025. Over the same period, net income declined from $274.2M in FY2023 to a net loss of -$104.1M in FY2025, bringing the FY2025 net margin to -1.9%. Gross margin stood at 18.3% in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue fell 28.7% year-over-year, while quarterly earnings grew 300.0%. Trailing twelve month revenue reached $4.99B with diluted EPS of -$3.85.
Balance sheet and cash flow
As of June 30, 2026, Canadian Solar held $1.46B in cash and short-term investments against $7.31B in total debt, resulting in net debt of $5.85B. Total assets stood at $16.11B compared to shareholders' equity of $2.76B, representing a debt-to-equity ratio of 2.65 and a current ratio of 1.02. In FY2025, operating cash flow was -$252.7M, capital expenditures were $1.39B, and free cash flow was -$1.64B. The company also allocated $70.1M toward share buybacks in FY2025.
Valuation and performance
At a last close of $9.81 on October 16, 2026, Canadian Solar trades at a market capitalization of $666.1M and an enterprise value of $7.28B. Its forward P/E of 21.5x sits above the 18.8x median of its US-listed Technology peers. Conversely, its price-to-sales ratio of 0.1x is below the peer median of 2.8x, and its price-to-book ratio is 0.3x. The stock has underperformed broader indices, falling 37.3% over the past year and 58.7% year-to-date, compared to a 16.8% 1-year gain for the S&P 500 (SPY).
What analysts expect
Wall Street coverage consists of 3 Strong Buy, 1 Buy, 6 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target of $17.01 implies upside of 73.4% from the last close of $9.81. For the fiscal year ending December 31, 2026, analysts estimate an EPS of -$2.78 on revenue of $5.40B. Next fiscal year estimates project EPS of -$0.09 and revenue of $6.83B. The company beat EPS estimates in 1 of the last 4 quarters, with its next earnings date scheduled for November 12, 2026.
Key risks and what to watch
- High leverage is a concern, with $7.31B in total debt significantly exceeding $1.46B in cash and short-term investments.
- Short interest is elevated, with short percent of float standing at 37.0%.
- Earnings volatility has been notable, with Canadian Solar beating EPS estimates in only 1 of the last 4 quarters.
- Operating profitability remains pressured, as reflected in the trailing twelve month operating margin of -5.9%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CSIQ AI stock analysis
This page is an AI-written research summary of Canadian Solar Inc. (CSIQ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CSIQ income statement, CSIQ balance sheet, CSIQ key metrics, CSIQ analyst forecast, CSIQ chart. See the CSIQ stock overview for the latest quote and news.
CSIQ AI stock analysis FAQ
Does Canadian Solar pay a dividend?
Canadian Solar does not report dividend payments. In FY2025, the company deployed capital toward $1.39B in capital expenditures and $70.1M in share buybacks.
What is Canadian Solar's debt position?
As of June 30, 2026, Canadian Solar held $7.31B in total debt and $1.46B in cash and short-term investments, resulting in net debt of $5.85B. Its debt-to-equity ratio stood at 2.65.
What are analysts forecasting for Canadian Solar's earnings?
For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$2.78 and revenue of $5.40B. For the following fiscal year, analysts project an EPS of -$0.09 and revenue of $6.83B.
When is Canadian Solar's next earnings report?
Canadian Solar's next earnings date is scheduled for November 12, 2026.