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%)
We assign a fundamental rating of 4 out of 10 to SOI. 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.
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.
- The reported net income has been mixed in the past 5 years: SOI reported negative net income in multiple years.
- In the past 5 years SOI always reported a positive cash flow from operatings.
1.2 Ratios
- SOI has a Return On Assets of 4.07%. This is comparable to the rest of the industry: SOI outperforms 52.54% of its industry peers.
- With a Return On Equity value of 9.10%, SOI perfoms like the industry average, outperforming 54.24% of the companies in the same industry.
- SOI's Return On Invested Capital of 8.25% is fine compared to the rest of the industry. SOI outperforms 61.02% of its industry peers.
| 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 has a Operating Margin of 14.55%. This is in the better half of the industry: SOI outperforms 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.
- In the last couple of years the Gross Margin of SOI has declined.
| 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
- SOI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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.
- Looking at the Altman-Z score, with a value of 2.17, SOI is in line with its industry, 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's Debt to FCF ratio of 0.38 is amongst the best of the industry. SOI outperforms 93.22% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that SOI is not too dependend on debt financing.
- SOI has a Debt to Equity ratio of 0.01. This is amongst the best in 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
- A Current Ratio of 1.25 indicates that SOI should not have too much problems paying its short term obligations.
- SOI has a worse Current ratio (1.25) 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.
- 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%.
- 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
- SOI is valuated rather expensively with a Price/Earnings ratio of 17.97.
- Compared to the rest of the industry, the Price/Earnings ratio of SOI is on the same level as its industry peers.
- SOI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 20.95, the valuation of SOI can be described as rather expensive.
- 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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 20.95 |
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 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 1.82, SOI pays a better dividend.
| 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%.