SOLARIS OILFIELD INFRAST-A (SOI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOI - US83418M1036 - Common Stock
11.32 USD
-0.1 (-0.88%)
11.32 USD
0 (0%)
Overall SOI gets a fundamental rating of 4 out of 10. We evaluated SOI against 61 industry peers in the Energy Equipment & Services industry. SOI has only an average score on both its financial health and profitability. SOI has a expensive valuation and it also scores bad on growth.
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.
- 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 comparable to the rest of the 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 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
- The Profit Margin of SOI (6.77%) is comparable to the rest of the industry.
- SOI's Profit Margin has declined in the last couple of years.
- SOI's Operating Margin of 14.55% is fine compared to the rest of the industry. SOI outperforms 72.88% of its industry peers.
- In the last couple of years the Operating Margin of SOI has declined.
- SOI's Gross Margin of 39.96% is amongst the best of 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 debt/assets ratio for SOI is higher compared to a year ago.
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.
- With an excellent Debt to FCF ratio value of 0.38, SOI belongs to the best of the industry, outperforming 93.22% of the companies in the same industry.
- SOI has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
- 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.
- The Current ratio of SOI (1.25) is worse than 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.
- With a Quick ratio value of 1.10, SOI is not doing good in the industry: 72.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- The earnings per share for SOI have decreased strongly by -33.68% in the last year.
- SOI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.26% yearly.
- The Revenue for SOI has decreased by -18.29% in the past year. This is quite bad
- 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
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.97, which indicates a rather expensive current valuation of SOI.
- SOI's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of SOI to the average of the S&P500 Index (27.21), we can say SOI is valued slightly cheaper.
- A Price/Forward Earnings ratio of 20.95 indicates a rather expensive 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.
- SOI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOI is on the same level as its industry peers.
- 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 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
- 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 1.14. SOI pays more dividend than 91.53% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 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.
- 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%
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%.