Canadian Solar entered this earnings season already bruised, with the stock down sharply over the past three months. The latest Q2 print has added more pressure. The share price fell about 6% today as investors reacted to another quarterly net loss and a deeper hit to earnings per share.

The headline is simple and uncomfortable. Canadian Solar delivered roughly US$1.2b in revenue for the quarter, close to recent run rates, yet still reported a net loss of about US$77m. For a solar manufacturer that is often framed as a value play, the gap between sales volume and profitability is the story investors now need to focus on.

Is Canadian Solar trading at a rare 0.2x P/S bargain, or has the market priced in the risk of ongoing losses too…