SOLARIS ENERGY INFRASTRUCTUR (SEI) Stock Fundamental Analysis
NYSE:SEI - New York Stock Exchange, Inc. - US83418M1036 - Common Stock - Currency: USD
Overall SEI gets a fundamental rating of 4 out of 10. We evaluated SEI against 59 industry peers in the Energy Equipment & Services industry. While SEI seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, SEI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SEI was profitable.
SEI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SEI reported negative net income in multiple years.
SEI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of SEI (1.81%) is comparable to the rest of the industry.
SEI has a Return On Equity (7.65%) which is in line with its industry peers.
SEI's Return On Invested Capital of 4.07% is on the low side compared to the rest of the industry. SEI is outperformed by 70.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 7.65% | ||
| ROIC | 4.07% |
ROA(3y)3.01%
ROA(5y)2.44%
ROE(3y)6.69%
ROE(5y)5.04%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SEI's Profit Margin of 4.88% is in line compared to the rest of the industry. SEI outperforms 48.28% of its industry peers.
SEI's Profit Margin has declined in the last couple of years.
SEI has a Operating Margin of 12.58%. This is in the better half of the industry: SEI outperforms 67.24% of its industry peers.
In the last couple of years the Operating Margin of SEI has declined.
Looking at the Gross Margin, with a value of 39.75%, SEI is in the better half of the industry, outperforming 77.59% of the companies in the same industry.
In the last couple of years the Gross Margin of SEI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.58% | ||
| PM (TTM) | 4.88% | ||
| GM | 39.75% |
OM growth 3YN/A
OM growth 5Y-19.03%
PM growth 3YN/A
PM growth 5Y-18.13%
GM growth 3Y2.57%
GM growth 5Y-10.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SEI is destroying value.
There is no outstanding debt for SEI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SEI has an Altman-Z score of 2.75. This is not the best score and indicates that SEI is in the grey zone with still only limited risk for bankruptcy at the moment.
SEI has a Altman-Z score of 2.75. This is in the better half of the industry: SEI outperforms 67.24% of its industry peers.
SEI has a debt to FCF ratio of 382.74. This is a negative value and a sign of low solvency as SEI would need 382.74 years to pay back of all of its debts.
SEI has a worse Debt to FCF ratio (382.74) than 70.69% of its industry peers.
SEI has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SEI (1.41) is worse than 84.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 382.74 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.44
WACC9.31%
2.3 Liquidity
SEI has a Current Ratio of 3.61. This indicates that SEI is financially healthy and has no problem in meeting its short term obligations.
SEI's Current ratio of 3.61 is amongst the best of the industry. SEI outperforms 86.21% of its industry peers.
SEI has a Quick Ratio of 3.40. This indicates that SEI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.40, SEI belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.61 | ||
| Quick Ratio | 3.4 |
3. Growth
3.1 Past
The earnings per share for SEI have decreased strongly by -40.96% in the last year.
SEI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.51% yearly.
EPS 1Y (TTM)-40.96%
EPS 3YN/A
EPS 5Y-19.51%
EPS Q2Q%-20%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%52.02%
3.2 Future
The Earnings Per Share is expected to grow by 48.98% on average over the next years. This is a very strong growth
Based on estimates for the next years, SEI will show a very strong growth in Revenue. The Revenue will grow by 25.07% on average per year.
EPS Next Y112.46%
EPS Next 2Y105.01%
EPS Next 3Y57.9%
EPS Next 5Y48.98%
Revenue Next Year57.9%
Revenue Next 2Y42.37%
Revenue Next 3Y29.9%
Revenue Next 5Y25.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 73.39 indicates a quite expensive valuation of SEI.
Based on the Price/Earnings ratio, SEI is valued a bit more expensive than the industry average as 68.97% of the companies are valued more cheaply.
SEI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 34.54, the valuation of SEI can be described as expensive.
77.59% of the companies in the same industry are cheaper than SEI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, SEI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.39 | ||
| Fwd PE | 34.54 |
4.2 Price Multiples
94.83% of the companies in the same industry are cheaper than SEI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SEI is valued a bit more expensive than 70.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2890.58 | ||
| EV/EBITDA | 32.41 |
4.3 Compensation for Growth
SEI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SEI's earnings are expected to grow with 57.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y105.01%
EPS Next 3Y57.9%
5. Dividend
5.1 Amount
SEI has a Yearly Dividend Yield of 1.64%.
Compared to an average industry Dividend Yield of 3.55, SEI pays a bit more dividend than its industry peers.
SEI's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
The dividend of SEI is nicely growing with an annual growth rate of 35.87%!
SEI has been paying a dividend for over 5 years, so it has already some track record.
SEI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)35.87%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
SEI pays out 124.75% of its income as dividend. This is not a sustainable payout ratio.
SEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP124.75%
EPS Next 2Y105.01%
EPS Next 3Y57.9%
35.96
+6.62 (+22.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners106.75%
Inst Owner ChangeN/A
Ins Owners5.46%
Ins Owner Change-4.26%
Market Cap2.41B
Analysts85
Price Target39.53 (9.93%)
Short Float %6.52%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend0.47
Dividend Growth(5Y)35.87%
DP124.75%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.27%
Min EPS beat(2)-11.5%
Max EPS beat(2)6.97%
EPS beat(4)2
Avg EPS beat(4)-0.74%
Min EPS beat(4)-11.5%
Max EPS beat(4)12.09%
EPS beat(8)4
Avg EPS beat(8)-1.43%
EPS beat(12)8
Avg EPS beat(12)33.26%
EPS beat(16)10
Avg EPS beat(16)24.21%
Revenue beat(2)2
Avg Revenue beat(2)7.15%
Min Revenue beat(2)2.87%
Max Revenue beat(2)11.43%
Revenue beat(4)3
Avg Revenue beat(4)4.4%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)11.43%
Revenue beat(8)3
Avg Revenue beat(8)-1.58%
Revenue beat(12)6
Avg Revenue beat(12)1.97%
Revenue beat(16)10
Avg Revenue beat(16)6.58%
PT rev (1m)58.16%
PT rev (3m)58.16%
EPS NQ rev (1m)26.61%
EPS NQ rev (3m)26.61%
EPS NY rev (1m)18.28%
EPS NY rev (3m)-34.12%
Revenue NQ rev (1m)-2.95%
Revenue NQ rev (3m)-2.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.39 | ||
| Fwd PE | 34.54 | ||
| P/S | 6.94 | ||
| P/FCF | 2890.58 | ||
| P/OCF | 34.53 | ||
| P/B | 10.89 | ||
| P/tB | 51.37 | ||
| EV/EBITDA | 32.41 |
EPS(TTM)0.49
EY1.36%
EPS(NY)1.04
Fwd EY2.9%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)1.04
OCFY2.9%
SpS5.19
BVpS3.3
TBVpS0.7
PEG (NY)0.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 7.65% | ||
| ROCE | 4.95% | ||
| ROIC | 4.07% | ||
| ROICexc | 4.15% | ||
| ROICexgc | 5.2% | ||
| OM | 12.58% | ||
| PM (TTM) | 4.88% | ||
| GM | 39.75% | ||
| FCFM | 0.24% |
ROA(3y)3.01%
ROA(5y)2.44%
ROE(3y)6.69%
ROE(5y)5.04%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-13.91%
ROICexc growth 3YN/A
ROICexc growth 5Y-13.51%
OM growth 3YN/A
OM growth 5Y-19.03%
PM growth 3YN/A
PM growth 5Y-18.13%
GM growth 3Y2.57%
GM growth 5Y-10.68%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 382.74 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 172.75% | ||
| Cap/Sales | 19.84% | ||
| Interest Coverage | 15.27 | ||
| Cash Conversion | 83.44% | ||
| Profit Quality | 4.92% | ||
| Current Ratio | 3.61 | ||
| Quick Ratio | 3.4 | ||
| Altman-Z | 2.75 |
F-Score6
WACC9.31%
ROIC/WACC0.44
Cap/Depr(3y)172.59%
Cap/Depr(5y)132.98%
Cap/Sales(3y)19.91%
Cap/Sales(5y)15.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.96%
EPS 3YN/A
EPS 5Y-19.51%
EPS Q2Q%-20%
EPS Next Y112.46%
EPS Next 2Y105.01%
EPS Next 3Y57.9%
EPS Next 5Y48.98%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%52.02%
Revenue Next Year57.9%
Revenue Next 2Y42.37%
Revenue Next 3Y29.9%
Revenue Next 5Y25.07%
EBIT growth 1Y-16.04%
EBIT growth 3YN/A
EBIT growth 5Y-12.37%
EBIT Next Year109.07%
EBIT Next 3Y79.51%
EBIT Next 5Y52.48%
FCF growth 1Y105%
FCF growth 3Y-13.31%
FCF growth 5YN/A
OCF growth 1Y43.51%
OCF growth 3Y27%
OCF growth 5Y-5.03%