Solaria Energia y Medio Ambiente (SLR) AI Stock Analysis

• Market Cap: €2.14B
• Dividend Yield: N/A
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.17
• Revenue Growth: 43.90%
• EPS Growth: 123.87%
• Country: ES
• Employees: 256
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): 0.23
• Shares Outstanding: 124,950,880
• 10 Day Avg. Volume: 1,984,762
• 30 Day Avg. Volume: 1,755,906
• PEG Ratio: -0.63
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 5.52
• P/FCF Ratio: -13.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €18.38
• Price Target Upside: 7.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: €20.50 ▲(19.46% Upside)

Solaria Energia y Medio Ambiente's stock is supported by strong financial performance and bullish technical indicators. The company's valuation is reasonable, though the lack of a dividend yield and potential overbought condition are considerations. The absence of earnings call data and corporate events limits the analysis to these factors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates that Solaria is effectively expanding its market presence and product adoption, contributing to long-term business sustainability.

Profitability Margins

High profitability margins reflect efficient cost management and pricing power, which are crucial for maintaining competitive advantage and financial health.

Equity Position

An improved equity position enhances financial stability and reduces risk, providing a solid foundation for future growth and investment opportunities.

Negative Factors

Revenue Decline

A decline in revenue could indicate challenges in maintaining growth momentum, potentially impacting future profitability and market positioning if not addressed.

Substantial Liabilities

High liabilities can strain resources and limit financial flexibility, which may affect the company's ability to invest in growth opportunities or weather economic downturns.

Negative Free Cash Flow

Negative free cash flow, while typical for the industry, could strain liquidity and limit the company's ability to fund new projects or pay down debt without careful cash management.

Solaria Energia y Medio Ambiente Business Overview & Revenue Model

Company Description

Solaria Energía y Medio Ambiente, S.A. engages in the solar photovoltaic power generation business. The company owns, manages, and operates photovoltaic plants in Spain, Italy, Uruguay, and Greece. The company was incorporated in 2002 and is headquartered in Madrid, Spain.

How the Company Makes Money

SLR generates revenue through the sale of electricity produced by its solar power plants, which are connected to the national grid. The company enters into power purchase agreements (PPAs) with utility companies and large energy consumers, securing long-term contracts that ensure a steady income stream. Additionally, SLR benefits from government incentives and subsidies for renewable energy production, which further bolsters its financial performance. The company may also engage in the sale of solar technology and installation services, contributing to its overall revenue. Strategic partnerships with local governments and other energy firms facilitate access to new markets and enhance its operational capabilities, thereby driving revenue growth.

Solaria Energia y Medio Ambiente Financial Statement Overview

Summary

Solaria Energia y Medio Ambiente demonstrates strong financial performance with consistent revenue growth and high profitability margins. The improved equity position and healthy operating cash flow are positive indicators. However, the decline in revenue from 2023 to 2024 and negative free cash flow due to high capital expenditures pose challenges.

Income Statement

Solaria Energia y Medio Ambiente has demonstrated strong revenue growth over the years, with a notable increase from 2019 to 2023. The gross profit margin remains high, showcasing effective cost management. The net profit margin is also solid, reflecting the company's profitability. However, there has been a decline in revenue from 2023 to 2024, which may need addressing to sustain momentum. The EBIT and EBITDA margins are healthy, indicating operational efficiency.

Balance Sheet

The company has improved its equity position significantly, with a rising equity ratio over the years. The debt-to-equity ratio has improved markedly due to debt reduction, enhancing financial stability. Return on equity is strong, suggesting effective utilization of shareholder funds. However, the total liabilities remain substantial, posing a potential risk if not managed carefully.

Cash Flow

Operating cash flow has consistently grown, reflecting robust cash generation from core operations. Free cash flow remains negative, impacted by high capital expenditures, which is typical for the industry but could strain liquidity if not controlled. The operating cash flow to net income ratio is healthy, indicating strong cash conversion. Prudent cash management strategies could mitigate investment cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	249.06M	176.91M	191.32M	139.28M	95.07M	53.27M
Gross Profit	249.06M	176.91M	190.95M	137.71M	94.18M	59.65M
EBITDA	257.70M	201.90M	201.50M	147.73M	93.67M	48.94M
Net Income	129.05M	88.61M	107.51M	90.05M	48.03M	30.41M
Balance Sheet
Total Assets	2.17B	1.97B	1.65B	1.43B	1.04B	715.51M
Cash, Cash Equivalents and Short-Term Investments	52.17M	60.83M	77.40M	150.77M	153.15M	81.58M
Total Debt	1.27B	1.15B	1.06B	881.55M	667.02M	418.21M
Total Liabilities	1.50B	1.35B	1.12B	1.08B	795.40M	492.99M
Stockholders Equity	670.77M	613.89M	522.92M	343.29M	247.35M	222.51M
Cash Flow
Free Cash Flow	0.00	-72.07M	-230.53M	-216.98M	-101.24M	-86.80M
Operating Cash Flow	0.00	115.32M	98.08M	114.49M	94.02M	47.55M
Investing Cash Flow	0.00	-187.39M	-328.61M	-331.47M	-195.26M	-134.35M
Financing Cash Flow	0.00	49.12M	157.16M	210.62M	172.79M	49.93M

Solaria Energia y Medio Ambiente Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:SLR, the sentiment is Positive. The current price of 17.16 is above the 20-day moving average (MA) of 16.84, above the 50-day MA of 16.02, and above the 200-day MA of 11.18, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 55.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:SLR.

Solaria Energia y Medio Ambiente Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLR	76 Outperform	€2.14B	12.24	26.57%	―	43.90%	123.87%
GRE	74 Outperform	€2.29B	24.20	26.86%	―	―	―
ADX	66 Neutral	€586.74M	16.00	17.10%	5.14%	3.59%	-29.28%
ANE	66 Neutral	€7.08B	9.47	13.06%	1.64%	2.05%	307.60%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SOL	39 Underperform	€74.96M	-0.15	―	―	-65.28%	24.77%