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EMEREN GROUP LTD (SOL) Stock Fundamental Analysis

NYSE:SOL - New York Stock Exchange, Inc. - US75971T3014 - ADR - Currency: USD

1.66  -0.04 (-2.35%)

After market: 1.66 0 (0%)

Fundamental Rating

3

SOL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 49 industry peers in the Construction & Engineering industry. SOL scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SOL has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year SOL has reported negative net income.
SOL had a negative operating cash flow in the past year.
In multiple years SOL reported negative net income over the last 5 years.
In the past 5 years SOL reported 4 times negative operating cash flow.
SOL Yearly Net Income VS EBIT VS OCF VS FCFSOL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M

1.2 Ratios

With a Return On Assets value of -0.56%, SOL is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -0.83%, SOL is doing worse than 65.22% of the companies in the same industry.
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
SOL Yearly ROA, ROE, ROICSOL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

1.3 Margins

SOL's Gross Margin of 23.82% is fine compared to the rest of the industry. SOL outperforms 73.91% of its industry peers.
SOL's Gross Margin has declined in the last couple of years.
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%
SOL Yearly Profit, Operating, Gross MarginsSOL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

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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.
Compared to 1 year ago, SOL has less shares outstanding
Compared to 5 years ago, SOL has more shares outstanding
The debt/assets ratio for SOL has been reduced compared to a year ago.
SOL Yearly Shares OutstandingSOL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
SOL Yearly Total Debt VS Total AssetsSOL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

SOL has an Altman-Z score of -0.35. This is a bad value and indicates that SOL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SOL (-0.35) is worse than 93.48% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that SOL is not too dependend on debt financing.
SOL has a Debt to Equity ratio of 0.11. This is in the better half of the industry: SOL outperforms 78.26% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF N/A
Altman-Z -0.35
ROIC/WACCN/A
WACC9.41%
SOL Yearly LT Debt VS Equity VS FCFSOL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 4.34 indicates that SOL has no problem at all paying its short term obligations.
SOL has a Current ratio of 4.34. This is amongst the best in the industry. SOL outperforms 100.00% of its industry peers.
SOL has a Quick Ratio of 4.34. This indicates that SOL is financially healthy and has no problem in meeting 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
SOL Yearly Current Assets VS Current LiabilitesSOL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

The earnings per share for SOL have decreased strongly by -750.00% in the last year.
The Revenue has grown by 25.98% in the past year. This is a very strong growth!
SOL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.74% yearly.
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

Based on estimates for the next years, SOL will show a very strong growth in Earnings Per Share. The EPS will grow by 46.16% on average per year.
Based on estimates for the next years, SOL will show a small growth in Revenue. The Revenue will grow by 5.76% on average per year.
EPS Next Y156.11%
EPS Next 2Y100.5%
EPS Next 3Y46.16%
EPS Next 5YN/A
Revenue Next Year-7.42%
Revenue Next 2Y16.92%
Revenue Next 3Y5.76%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SOL Yearly Revenue VS EstimatesSOL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
SOL Yearly EPS VS EstimatesSOL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -0.5 -1 -1.5 -2 -2.5

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for SOL. In the last year negative earnings were reported.
SOL is valuated cheaply with a Price/Forward Earnings ratio of 4.57.
Based on the Price/Forward Earnings ratio, SOL is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SOL to the average of the S&P500 Index (22.68), we can say SOL is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 4.57
SOL Price Earnings VS Forward Price EarningsSOL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20

4.2 Price Multiples

SOL's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.77
SOL Per share dataSOL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

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.
A more expensive valuation may be justified as SOL's earnings are expected to grow with 46.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y100.5%
EPS Next 3Y46.16%

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0

5. Dividend

5.1 Amount

No dividends for SOL!.
Industry RankSector Rank
Dividend Yield N/A

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EMEREN GROUP LTD

NYSE:SOL (2/21/2025, 8:04:00 PM)

After market: 1.66 0 (0%)

1.66

-0.04 (-2.35%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)11-14 2024-11-14/amc
Earnings (Next)05-21 2025-05-21/amc
Inst Owners45.15%
Inst Owner Change-89.87%
Ins Owners1.06%
Ins Owner Change0%
Market Cap85.08M
Analysts80
Price Target5.1 (207.23%)
Short Float %17.55%
Short Ratio3.72
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
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)-6.25%
PT rev (3m)-6.25%
EPS NQ rev (1m)4.34%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)7.15%
EPS NY rev (3m)-70%
Revenue NQ rev (1m)-2.33%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-35.36%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 4.57
P/S 0.83
P/FCF N/A
P/OCF N/A
P/B 0.27
P/tB 0.27
EV/EBITDA 13.77
EPS(TTM)-0.13
EYN/A
EPS(NY)0.36
Fwd EY21.9%
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 -0.35
F-Score2
WACC9.41%
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 Y156.11%
EPS Next 2Y100.5%
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-7.42%
Revenue Next 2Y16.92%
Revenue Next 3Y5.76%
Revenue Next 5YN/A
EBIT growth 1Y83.68%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1494.5%
EBIT Next 3Y191.6%
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