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

Taking everything into account, SOI scores 4 out of 10 in our fundamental rating. SOI was compared to 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

  • 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.
  • 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

  • The Return On Assets of SOI (4.07%) is comparable to the rest of the industry.
  • 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.
  • 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's Profit Margin of 6.77% is in line compared to the rest of the industry. SOI outperforms 57.63% of its industry peers.
  • In the last couple of years the Profit Margin of SOI has declined.
  • Looking at the Operating Margin, with a value of 14.55%, SOI is in the better half of the industry, outperforming 72.88% of the companies in the same industry.
  • SOI's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 39.96%, SOI belongs to the best of the industry, outperforming 81.36% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SOI has declined.
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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOI is destroying value.
  • Compared to 1 year ago, SOI has less shares outstanding
  • SOI has a worse debt/assets ratio than last year.
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.
  • SOI's Altman-Z score of 2.17 is in line compared to the rest of the industry. SOI outperforms 57.63% of its industry peers.
  • 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.
  • 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.
  • 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.
  • SOI has a Quick Ratio of 1.10. 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 Quick ratio of 1.10 is on the low side compared to the rest of the industry. SOI is outperformed by 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%.
  • 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%.
  • 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

  • The Earnings Per Share is expected to grow by 11.40% on average over the next years. This is quite good.
  • SOI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.09% yearly.
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

  • A Price/Earnings ratio of 17.97 indicates a rather expensive valuation of SOI.
  • The rest of the industry has a similar Price/Earnings ratio as SOI.
  • Compared to an average S&P500 Price/Earnings ratio of 28.32, SOI is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 20.95, which indicates a rather expensive current valuation of SOI.
  • 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.
  • When comparing the Price/Forward Earnings ratio of SOI to the average of the S&P500 Index (25.57), we can say SOI is valued inline with the index average.
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 is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, SOI is valued a bit cheaper than the industry average as 69.49% of the companies are valued more expensively.
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

  • With a Yearly Dividend Yield of 4.24%, SOI is a good candidate for dividend investing.
  • SOI's Dividend Yield is rather good when compared to the industry average which is at 1.12. SOI pays more dividend than 91.53% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, SOI pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.24%

5.2 History

  • On average, the dividend of SOI grows each year by 35.87%, which is quite nice.
  • 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.
  • 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%
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%.