SOLARIS OILFIELD INFRAST-A (SOI) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:SOI • US83418M1036

11.32 USD
-0.1 (-0.88%)
At close: Sep 11, 2024
11.32 USD
0 (0%)
After Hours: 9/11/2024, 8:04:00 PM
Fundamental Rating

4

SOI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. SOI has an average financial health and profitability rating. SOI does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • SOI had positive earnings in the past year.
  • In the past year SOI had a positive cash flow from operations.
  • In multiple years SOI reported negative net income over the last 5 years.
  • Each year in the past 5 years SOI had a positive operating cash flow.
SOI Yearly Net Income VS EBIT VS OCF VS FCFSOI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.07%, SOI is in line with its industry, outperforming 52.54% of the companies in the same industry.
  • SOI has a Return On Equity (9.10%) which is in line with its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.25%, SOI is in the better half of the industry, outperforming 61.02% of the companies in the same industry.
Industry RankSector 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
SOI Yearly ROA, ROE, ROICSOI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

1.3 Margins

  • SOI has a Profit Margin (6.77%) which is comparable to the rest of the industry.
  • SOI's Profit Margin has declined in the last couple of years.
  • SOI has a better Operating Margin (14.55%) than 72.88% of its industry peers.
  • SOI's Operating Margin has declined in the last couple of years.
  • 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 RankSector 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%
SOI Yearly Profit, Operating, Gross MarginsSOI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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5

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOI is destroying value.
  • The number of shares outstanding for SOI has been reduced compared to 1 year ago.
  • The debt/assets ratio for SOI is higher compared to a year ago.
SOI Yearly Shares OutstandingSOI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
SOI Yearly Total Debt VS Total AssetsSOI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

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.
  • The Debt to FCF ratio of SOI is 0.38, which is an excellent value as it means it would take SOI, only 0.38 years of fcf income to pay off all of its debts.
  • SOI has a Debt to FCF ratio of 0.38. This is amongst the best in the industry. SOI outperforms 93.22% of its industry peers.
  • SOI has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.01, SOI belongs to the top of the industry, outperforming 93.22% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.38
Altman-Z 2.17
ROIC/WACC0.98
WACC8.45%
SOI Yearly LT Debt VS Equity VS FCFSOI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M

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.
  • With a Current ratio value of 1.25, SOI is not doing good in the industry: 83.05% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.10 indicates that SOI should not have too much problems paying its short term obligations.
  • SOI has a Quick ratio of 1.10. This is in the lower half of the industry: SOI underperforms 72.88% of its industry peers.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.1
SOI Yearly Current Assets VS Current LiabilitesSOI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

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3

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%.
  • The earnings per share for SOI have been decreasing by -13.26% on average. This is quite bad
  • Looking at the last year, SOI shows a very negative growth in Revenue. The Revenue has decreased by -18.29% in the last year.
  • The Revenue has been growing by 8.24% on average over the past years. This is quite good.
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.
SOI Yearly Revenue VS EstimatesSOI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
SOI Yearly EPS VS EstimatesSOI Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1 1.5

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2

4. Valuation

4.1 Price/Earnings Ratio

  • SOI is valuated rather expensively with a Price/Earnings ratio of 17.97.
  • SOI's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 28.30, SOI is valued a bit cheaper.
  • SOI is valuated rather expensively with a Price/Forward Earnings ratio of 20.95.
  • Based on the Price/Forward Earnings ratio, SOI is valued a bit more expensive than 79.66% of the companies in the same industry.
  • SOI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.97
Fwd PE 20.95
SOI Price Earnings VS Forward Price EarningsSOI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • SOI's Enterprise Value to EBITDA ratio is in line with 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 RankSector Rank
P/FCF 9.6
EV/EBITDA 6.56
SOI Per share dataSOI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.31%
EPS Next 3Y11.4%

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6

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 1.14. SOI pays more dividend than 91.53% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, SOI pays a better dividend.
Industry RankSector 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.
  • SOI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)35.87%
Div Incr Years1
Div Non Decr Years5
SOI Yearly Dividends per shareSOI Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4

5.3 Sustainability

  • SOI pays out 111.61% of its income as dividend. This is not a sustainable payout ratio.
  • SOI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP111.61%
EPS Next 2Y-19.31%
EPS Next 3Y11.4%
SOI Yearly Income VS Free CF VS DividendSOI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M
SOI Dividend Payout.SOI Dividend Payout, showing the Payout Ratio.SOI Dividend Payout.PayoutRetained Earnings

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SOLARIS OILFIELD INFRAST-A / SOI FAQ

What is the ChartMill fundamental rating of SOLARIS OILFIELD INFRAST-A (SOI) stock?

ChartMill assigns a fundamental rating of 4 / 10 to SOI.


What is the valuation status for SOI stock?

ChartMill assigns a valuation rating of 2 / 10 to SOLARIS OILFIELD INFRAST-A (SOI). This can be considered as Overvalued.


What is the profitability of SOI stock?

SOLARIS OILFIELD INFRAST-A (SOI) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for SOI stock?

The Price/Earnings (PE) ratio for SOLARIS OILFIELD INFRAST-A (SOI) is 17.97 and the Price/Book (PB) ratio is 2.43.


How sustainable is the dividend of SOLARIS OILFIELD INFRAST-A (SOI) stock?

The dividend rating of SOLARIS OILFIELD INFRAST-A (SOI) is 6 / 10 and the dividend payout ratio is 111.61%.