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%)
Taking everything into account, SOI scores 4 out of 10 in our fundamental rating. SOI was compared to 62 industry peers in the Energy Equipment & Services industry. SOI has only an average score on both its financial health and profitability. SOI does not seem to be growing, but still is valued expensively.
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.
- In multiple years SOI reported negative net income over the last 5 years.
- In the past 5 years SOI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of SOI (4.07%) is comparable to the rest of the industry.
- SOI's Return On Equity of 9.10% is in line compared to the rest of the industry. SOI outperforms 54.24% of its industry peers.
- 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
- 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.
- SOI's Operating Margin has declined in the last couple of years.
- The Gross Margin of SOI (39.96%) is better than 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
- 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.
- 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.
- SOI has a Altman-Z score (2.17) which is comparable to the rest of the 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.
- The Debt to FCF ratio of SOI (0.38) is better than 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.98
WACC8.45%
2.3 Liquidity
- A Current Ratio of 1.25 indicates that SOI should not have too much problems paying 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.
- 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
- Based on estimates for the next years, SOI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.40% on average per year.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 17.97, which indicates a rather expensive current valuation of SOI.
- SOI's Price/Earnings ratio is in line with the industry average.
- 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.
- A Price/Forward Earnings ratio of 20.95 indicates a rather expensive valuation of SOI.
- 79.66% of the companies in the same industry are cheaper than SOI, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. SOI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SOI.
- 69.49% of the companies in the same industry are more expensive than SOI, based on the Price/Free Cash Flow ratio.
| 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 1.17. SOI pays more dividend than 91.53% of the companies in the same industry.
- SOI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector 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
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%
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%.