EMEREN GROUP LTD (SOL)

US75971T3014 - ADR

2  +0.18 (+9.89%)

After market: 2.01 +0.01 (+0.5%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SOL. SOL was compared to 45 industry peers in the Construction & Engineering industry. The financial health of SOL is average, but there are quite some concerns on its profitability. SOL is not valued too expensively and it also shows a decent growth rate.



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1

1. Profitability

1.1 Basic Checks

SOL had negative earnings in the past year.
SOL had a negative operating cash flow in the past year.
In multiple years SOL reported negative net income over the last 5 years.
SOL had negative operating cash flow in 4 of the past 5 years.

1.2 Ratios

With a Return On Assets value of -0.56%, SOL is not doing good in the industry: 65.91% of the companies in the same industry are doing better.
With a Return On Equity value of -0.83%, SOL is not doing good in the industry: 65.91% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -0.56%
ROE -0.83%
ROIC N/A
ROA(3y)-0.1%
ROA(5y)-0.45%
ROE(3y)-0.21%
ROE(5y)-1.58%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Looking at the Gross Margin, with a value of 23.82%, SOL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Gross Margin of SOL has declined.
SOL does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 23.82%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.38%
GM growth 5Y-3.97%

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5

2. Health

2.1 Basic Checks

SOL does not have a ROIC to compare to the WACC, probably because it is not profitable.
SOL has less shares outstanding than it did 1 year ago.
SOL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SOL has been reduced compared to a year ago.

2.2 Solvency

SOL has an Altman-Z score of -0.28. This is a bad value and indicates that SOL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.28, SOL is doing worse than 95.45% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that SOL is not too dependend on debt financing.
SOL's Debt to Equity ratio of 0.11 is amongst the best of the industry. SOL outperforms 81.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF N/A
Altman-Z -0.28
ROIC/WACCN/A
WACC9.93%

2.3 Liquidity

A Current Ratio of 4.34 indicates that SOL has no problem at all paying its short term obligations.
The Current ratio of SOL (4.34) is better than 100.00% of its industry peers.
A Quick Ratio of 4.34 indicates that SOL has no problem at all paying its short term obligations.
SOL's Quick ratio of 4.34 is amongst the best of the industry. SOL outperforms 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 4.34
Quick Ratio 4.34

More info and screens

4

3. Growth

3.1 Past

SOL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -750.00%.
Looking at the last year, SOL shows a very strong growth in Revenue. The Revenue has grown by 25.98%.
The Revenue has been growing slightly by 1.74% on average over the past years.
EPS 1Y (TTM)-750%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%152.94%
Revenue 1Y (TTM)25.98%
Revenue growth 3Y12.85%
Revenue growth 5Y1.74%
Sales Q2Q%-7.8%

3.2 Future

SOL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.16% yearly.
SOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.76% yearly.
EPS Next Y152.37%
EPS Next 2Y97.21%
EPS Next 3Y46.16%
EPS Next 5YN/A
Revenue Next Year-6.52%
Revenue Next 2Y16.99%
Revenue Next 3Y5.76%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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5

4. Valuation

4.1 Price/Earnings Ratio

SOL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 5.88, the valuation of SOL can be described as very cheap.
Based on the Price/Forward Earnings ratio, SOL is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. SOL is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 5.88

4.2 Price Multiples

SOL's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.39

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SOL's earnings are expected to grow with 46.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y97.21%
EPS Next 3Y46.16%

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0

5. Dividend

5.1 Amount

SOL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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EMEREN GROUP LTD

NYSE:SOL (12/23/2024, 8:04:00 PM)

After market: 2.01 +0.01 (+0.5%)

2

+0.18 (+9.89%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)11-14 2024-11-14/amc
Earnings (Next)N/A N/A
Inst Owners44.15%
Inst Owner Change1.62%
Ins Owners1.06%
Ins Owner Change0%
Market Cap102.51M
Analysts82.86
Price Target5.44 (172%)
Short Float %1.98%
Short Ratio4.71
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-41.52%
Min EPS beat(2)-85.86%
Max EPS beat(2)2.81%
EPS beat(4)1
Avg EPS beat(4)-1521.92%
Min EPS beat(4)-5840.59%
Max EPS beat(4)2.81%
EPS beat(8)2
Avg EPS beat(8)-819%
EPS beat(12)4
Avg EPS beat(12)-543.79%
EPS beat(16)7
Avg EPS beat(16)-279.56%
Revenue beat(2)1
Avg Revenue beat(2)-5.2%
Min Revenue beat(2)-51.47%
Max Revenue beat(2)41.07%
Revenue beat(4)2
Avg Revenue beat(4)-3.36%
Min Revenue beat(4)-51.47%
Max Revenue beat(4)41.07%
Revenue beat(8)2
Avg Revenue beat(8)-24.84%
Revenue beat(12)3
Avg Revenue beat(12)-25.63%
Revenue beat(16)4
Avg Revenue beat(16)-22.41%
PT rev (1m)0%
PT rev (3m)21.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-57.41%
EPS NY rev (1m)-72%
EPS NY rev (3m)-72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-31.02%
Revenue NY rev (1m)-34.73%
Revenue NY rev (3m)-30.56%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 5.88
P/S 1
P/FCF N/A
P/OCF N/A
P/B 0.32
P/tB 0.32
EV/EBITDA 16.39
EPS(TTM)-0.13
EYN/A
EPS(NY)0.34
Fwd EY17%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)-0.14
OCFYN/A
SpS2
BVpS6.23
TBVpS6.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.56%
ROE -0.83%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 23.82%
FCFM N/A
ROA(3y)-0.1%
ROA(5y)-0.45%
ROE(3y)-0.21%
ROE(5y)-1.58%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.38%
GM growth 5Y-3.97%
F-Score2
Asset Turnover0.22
Health
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF N/A
Debt/EBITDA 5.49
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.34
Quick Ratio 4.34
Altman-Z -0.28
F-Score2
WACC9.93%
ROIC/WACCN/A
Cap/Depr(3y)286.93%
Cap/Depr(5y)229.75%
Cap/Sales(3y)28.69%
Cap/Sales(5y)21.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-750%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%152.94%
EPS Next Y152.37%
EPS Next 2Y97.21%
EPS Next 3Y46.16%
EPS Next 5YN/A
Revenue 1Y (TTM)25.98%
Revenue growth 3Y12.85%
Revenue growth 5Y1.74%
Sales Q2Q%-7.8%
Revenue Next Year-6.52%
Revenue Next 2Y16.99%
Revenue Next 3Y5.76%
Revenue Next 5YN/A
EBIT growth 1Y83.68%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2741.96%
EBIT Next 3Y259.14%
EBIT Next 5YN/A
FCF growth 1Y1.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y60.52%
OCF growth 3YN/A
OCF growth 5YN/A