Does This Renewable Energy Giant Have Too Much Cash?
First Solar (NASDAQ: FSLR) has long been one of the most profitable manufacturers in the solar industry and had a formidable balance sheet that most competitors envied. And that trend continues to this day.
But what was a valuable war chest in the 2010s may have become excess cash in 2021. First Solar has sold off most of its solar project development business, no longer has a project ownership arm, and has reduced the scope of its products to primarily solar panels. At the same time, solar manufacturing has become more mature, with solar panel prices stabilizing as manufacturers reach economies of scale, meaning there's less disruption year to year.
Given the shrinking scope of First Solar's business, this solar energy stock may be sitting on far more cash than it needs, and it could be a great dividend payer for investors.
Source Fool.com
