SOLARIS OILFIELD INFRAST-A (SOI) Stock Fundamental Analysis
NYSE:SOI - New York Stock Exchange, Inc. - US83418M1036 - Common Stock - Currency: USD
SOI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of SOI get a neutral evaluation. Nothing too spectacular is happening here. SOI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SOI was profitable.
In the past year SOI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SOI reported negative net income in multiple years.
SOI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOI has a Return On Assets (4.07%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 9.10%, SOI is in line with its industry, outperforming 54.24% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.25%, SOI is doing good in the industry, outperforming 61.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 9.1% | ||
| ROIC | 8.25% |
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
Looking at the Profit Margin, with a value of 6.77%, SOI is in line with its industry, outperforming 57.63% of the companies in the same industry.
In the last couple of years the Profit Margin of SOI has declined.
SOI has a better Operating Margin (14.55%) than 72.88% of its industry peers.
In the last couple of years the Operating Margin of SOI has declined.
SOI has a Gross Margin of 39.96%. This is amongst the best in the industry. SOI outperforms 81.36% of its industry peers.
SOI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.55% | ||
| PM (TTM) | 6.77% | ||
| GM | 39.96% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOI is destroying value.
SOI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SOI has been reduced compared to 5 years ago.
Compared to 1 year ago, SOI has a worse debt to assets ratio.
2.2 Solvency
SOI has an Altman-Z score of 2.17. This is not the best score and indicates that SOI is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.17, SOI perfoms like the industry average, outperforming 57.63% of the companies in the same industry.
SOI has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
The Debt to FCF ratio of SOI (0.38) is better than 93.22% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that SOI is not too dependend on debt financing.
SOI's Debt to Equity ratio of 0.01 is amongst the best of the industry. SOI outperforms 93.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.98
WACC8.45%
2.3 Liquidity
SOI has a Current Ratio of 1.25. This is a normal value and indicates that SOI is financially healthy and should not expect problems in meeting its short term obligations.
SOI's Current ratio of 1.25 is on the low side compared to the rest of the industry. SOI is outperformed by 83.05% of its industry peers.
A Quick Ratio of 1.10 indicates that SOI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.10, SOI is doing worse than 72.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
SOI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.68%.
Measured over the past years, SOI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.26% on average per year.
SOI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.29%.
Measured over the past years, SOI shows a quite strong growth in Revenue. The Revenue has been growing by 8.24% on average per year.
EPS 1Y (TTM)-33.68%
EPS 3Y246.22%
EPS 5Y-13.26%
EPS Q2Q%-48%
Revenue 1Y (TTM)-18.29%
Revenue growth 3Y41.68%
Revenue growth 5Y8.24%
Sales Q2Q%-4.3%
3.2 Future
SOI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.40% yearly.
Based on estimates for the next years, SOI will show a decrease in Revenue. The Revenue will decrease by -0.09% on average per year.
EPS Next Y-22.55%
EPS Next 2Y-19.31%
EPS Next 3Y11.4%
EPS Next 5YN/A
Revenue Next Year-5.52%
Revenue Next 2Y1.01%
Revenue Next 3Y-0.09%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.97, the valuation of SOI can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as SOI.
When comparing the Price/Earnings ratio of SOI to the average of the S&P500 Index (27.30), we can say SOI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 20.95, SOI is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOI indicates a slightly more expensive valuation: SOI is more expensive than 79.66% of the companies listed in the same industry.
SOI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
SOI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SOI is valued a bit cheaper than 69.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.6 | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.31%
EPS Next 3Y11.4%
5. Dividend
5.1 Amount
SOI has a Yearly Dividend Yield of 4.24%, which is a nice return.
SOI's Dividend Yield is rather good when compared to the industry average which is at 3.54. SOI pays more dividend than 91.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, SOI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
5.2 History
The dividend of SOI is nicely growing with an annual growth rate of 35.87%!
SOI has been paying a dividend for over 5 years, so it has already some track record.
As SOI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)35.87%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
111.61% of the earnings are spent on dividend by SOI. This is not a sustainable payout ratio.
The dividend of SOI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP111.61%
EPS Next 2Y-19.31%
EPS Next 3Y11.4%
11.32
-0.1 (-0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners54.58%
Inst Owner Change0%
Ins Owners39.26%
Ins Owner Change0%
Market Cap498.08M
Analysts83.33
Price Target12.92 (14.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Yearly Dividend0.47
Dividend Growth(5Y)35.87%
DP111.61%
Div Incr Years1
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.53%
Min EPS beat(2)6.97%
Max EPS beat(2)12.09%
EPS beat(4)2
Avg EPS beat(4)-2.84%
Min EPS beat(4)-19.86%
Max EPS beat(4)12.09%
EPS beat(8)5
Avg EPS beat(8)0.42%
EPS beat(12)9
Avg EPS beat(12)35.89%
EPS beat(16)11
Avg EPS beat(16)25.22%
Revenue beat(2)2
Avg Revenue beat(2)9.53%
Min Revenue beat(2)7.63%
Max Revenue beat(2)11.43%
Revenue beat(4)2
Avg Revenue beat(4)1.01%
Min Revenue beat(4)-10.7%
Max Revenue beat(4)11.43%
Revenue beat(8)2
Avg Revenue beat(8)-2.58%
Revenue beat(12)6
Avg Revenue beat(12)5.68%
Revenue beat(16)10
Avg Revenue beat(16)9.34%
PT rev (1m)18.75%
PT rev (3m)18.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.48%
EPS NY rev (1m)0%
EPS NY rev (3m)18.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 20.95 | ||
| P/S | 1.81 | ||
| P/FCF | 9.6 | ||
| P/OCF | 6.21 | ||
| P/B | 2.43 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)0.63
EY5.57%
EPS(NY)0.54
Fwd EY4.77%
FCF(TTM)1.18
FCFY10.41%
OCF(TTM)1.82
OCFY16.1%
SpS6.25
BVpS4.65
TBVpS4.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 9.1% | ||
| ROCE | 10.05% | ||
| ROIC | 8.25% | ||
| ROICexc | 8.36% | ||
| ROICexgc | 8.65% | ||
| OM | 14.55% | ||
| PM (TTM) | 6.77% | ||
| GM | 39.96% | ||
| FCFM | 18.87% |
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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.38 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 74.14% | ||
| Cap/Sales | 10.3% | ||
| Interest Coverage | 11.86 | ||
| Cash Conversion | 102.56% | ||
| Profit Quality | 278.61% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.17 |
F-Score6
WACC8.45%
ROIC/WACC0.98
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)-33.68%
EPS 3Y246.22%
EPS 5Y-13.26%
EPS Q2Q%-48%
EPS Next Y-22.55%
EPS Next 2Y-19.31%
EPS Next 3Y11.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.29%
Revenue growth 3Y41.68%
Revenue growth 5Y8.24%
Sales Q2Q%-4.3%
Revenue Next Year-5.52%
Revenue Next 2Y1.01%
Revenue Next 3Y-0.09%
Revenue Next 5YN/A
EBIT growth 1Y-26.94%
EBIT growth 3YN/A
EBIT growth 5Y-12.37%
EBIT Next Year70.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y657.7%
FCF growth 3Y-13.31%
FCF growth 5YN/A
OCF growth 1Y129.73%
OCF growth 3Y27%
OCF growth 5Y-5.03%