Evergreen Solar - ROE & FCFE Analysis The growth potential of the solar industry as a whole -- and Evergreen Solar (ESLR) in particular, with a geographically diversified contractual backlog -- remains a compelling story. Positive factors include ongoing expansion programs over the next few years, improving operating efficiencies and technological upgrades.However, continuing near-term earnings losses due to high start-up costs, significant capital expenditures, oversupply of solar modules, absence of deep pockets unlike its peers and earnings-dilutive stock issuances may present risks to the near-term share price upside potential.From 2003 through 2008, as the company recorded net earnings losses since inception, stockholders suffered from negative annual returns-on-equity (ROE).Historically, year-over-year, operating profit margins remained volatile and negative, while sales per dollar of assets and financial leverage exhibited relatively high volatility from one year to the next, where the ...

Evergreen Solar (ESLR) engages in the development, manufacturing and marketing of solar power products worldwide, including solar cells, panels and photovoltaic systems. Its modules are designed for a range of solar electric power applications, including water pumping, communications, outdoor lighting, rural electrification, recreational vehicles and stand-alone or grid-connected AC applications.The growth potential of the solar industry as a whole, and Evergreen Solar in particular -- with a $3 billion and 1GW [gigawatt] contractual backlog -- remains a compelling story. Capacity expansion and progress toward near-term break-even earnings make it one of the fastest growing alternative energy stocks. Positive factors include the significant new multi-year sales contracts, ongoing expansion programs over the next few years, improving operating efficiencies, technological upgrades and planned new string factory. However, continuing earnings losses due to high start-up costs, significant capital expenditures and earnings dilutive stock issuances may present risks ...