CSIQ - Canadian Solar: An Undervalued Canadian Company With International Operations
2024-02-22 22:02:55 ET
Summary
- Canadian Solar has experienced significant growth in revenues and earnings per share over the past decade.
- The founder and CEO, Dr. Shawn Qu, has a strong background in physics and material science, with most of his adult life spent in Canada.
- Canadian Solar's success is not solely attributed to its Chinese manufacturing footprint, but also to its diversified energy strategy and USA manufacturing expansion plans.
- Canadian Solar is a Canadian-based, international growth company being mispriced as a Chinese company.
- Canadian Solar trades at much lower valuations than its peers.
Canadian Solar ( CSIQ ) was incorporated in Canada in 2001. In 2006, Canadian Solar went public on Nasdaq as a Corporation headquartered in Canada. Since 2013, Canadian Solar has grown its revenues by 475% and earnings per share by 800%. During these past 10 years, Canadian Solar has always had positive earnings and is now an international solar powerhouse. We feel Canadian Solar is vastly undervalued due to its image as a Chinese company. To understand Canadian Solar, we must understand its founder and CEO Dr. Shawn (Xiaohua) Qu.
Dr. Shawn Qu's Solar Journey
In 2018, Suncast did a great interview with Dr Qu:
SunCast with Canadian Solar CEO Dr. Shawn Qu
A recap of this interview:
- 1986 – physics degree in China
- Moved to Canada in 1987 – when China 1 st allowed its citizens to attend foreign colleges
- Univ of Manitoba, Winnipeg accepted Dr Qu
- UoM made a home for foreign students, got an MS in physics
- 1995 Toronto received Ph.D. in material science – non-linear optics in compound semiconductors.
- 1996 Ontario Hydro Hired Dr. Qu to develop their solar
- 1998 moved to France to work for a photowatt a solar company – automated tooling systems
- Canadian Solar was founded in 2001 – in Ontario started a 1 person firm
- 1 st contract – VW RFP – small solar charger for autos, VW of Mexico – Electrical design for charging autos from Solar
- First customers - Germany, Spain, and Italy
- Small modules, auto chargers
- 2004 large format module – 100 watts
- 2006 IPO on Nasdaq