Solaris Energy Infrastructure (SEI) AI Stock Analysis

• Market Cap: $2.18B
• Dividend Yield: 1.44%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 54.5
• Beta (1Y): 1.87
• Revenue Growth: 62.66%
• EPS Growth: -8.07%
• Country: US
• Employees: 364
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.30
• Shares Outstanding: 44,603,740
• 10 Day Avg. Volume: 2,498,325
• 30 Day Avg. Volume: 1,945,792
• PEG Ratio: -1.51
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 2.64
• P/FCF Ratio: -6.41
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 5.01
• Enterprise Value/Gross Profit: 18.34
• Enterprise Value/Ebitda: 15.74
• 1Y Price Target: $42.43
• Price Target Upside: 27.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: $32.00 ▼(-3.79% Downside)

Solaris Energy Infrastructure's strong financial performance and strategic growth in the Power Solutions segment are key strengths. However, cash flow challenges, high valuation, and flat future guidance temper the overall outlook.

Positive Factors

Power Solutions Segment Growth

The rapid expansion in the Power Solutions segment demonstrates Solaris's ability to scale operations and meet increasing demand, enhancing its competitive position in the renewable energy market.

Strategic Joint Venture

The joint venture with Stateline Power, LLC, positions Solaris to leverage shared resources and expertise, potentially increasing its market share and operational efficiency in the long term.

Innovative Solutions and New Technologies

By investing in innovative technologies like the Solaris Pulse app, Solaris enhances operational efficiency and customer satisfaction, which can drive sustained growth and differentiation in the market.

Negative Factors

Cash Flow Challenges

High capital expenditures leading to negative free cash flow may limit Solaris's ability to invest in future growth opportunities and could strain financial flexibility if not addressed.

Logistics Solutions Segment Decline

The decline in the Logistics Solutions segment reflects challenges in maintaining growth across all business areas, potentially impacting overall revenue diversification and stability.

Dependence on Third-Party Resources

Dependence on third-party resources suggests potential vulnerabilities in Solaris's supply chain, which could affect its ability to meet demand and control costs effectively in the long term.

Solaris Energy Infrastructure Business Overview & Revenue Model

Company Description

Solaris Energy Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company provides technician support, last mile, and mobilization logistics services. It is also involved in the transloading and storage of proppant or railcars at its transloading facility. In addition, the company develops Railtronix, an inventory management software; and all-electric equipment that automates the low pressure section of oil and gas well completion sites. It serves exploration and production, and oilfield services industries. The company was formerly known as Solaris Oilfield Infrastructure, Inc. and changed its name to Solaris Energy Infrastructure, Inc. in September 2024. Solaris Energy Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas.

How the Company Makes Money

Solaris Energy Infrastructure generates revenue primarily through the sale of electricity produced by its solar energy facilities. The company enters into long-term power purchase agreements (PPAs) with utility companies and large commercial customers, ensuring a steady income stream from the electricity generated. Additionally, SEI earns revenue from the installation and maintenance of solar systems for commercial clients, as well as from energy storage solutions that enhance the efficiency and reliability of renewable energy supply. Strategic partnerships with technology providers and government incentives for renewable energy projects further boost SEI's financial performance.

Solaris Energy Infrastructure Financial Statement Overview

Summary

Solaris Energy Infrastructure shows strong revenue growth and operational efficiency, with an 18.7% revenue increase and solid margins. However, cash flow challenges due to high capital expenditures and a modest net profit margin indicate areas for improvement.

Income Statement

Solaris Energy Infrastructure has demonstrated strong financial performance with consistent revenue growth, evidenced by a 18.7% increase from the previous year to the TTM period. The gross profit margin for TTM improved to 27.3%, indicating effective cost management. The company also maintained a healthy EBITDA margin of 31.8% and an EBIT margin of 17.5%, reflecting solid operational efficiency. However, the net profit margin for TTM is relatively modest at 4.5%, suggesting room for improvement in profitability.

Balance Sheet

The balance sheet reveals a moderate financial position with a debt-to-equity ratio of 0.91, indicating a balanced leverage level. The equity ratio stands at 32.0%, showing a stable capital structure. Return on equity (ROE) for TTM is at 4.6%, which suggests moderate returns on shareholders' investment. Despite the overall healthy balance sheet, the increase in total debt warrants cautious monitoring of future leverage levels.

Cash Flow

Solaris Energy Infrastructure's cash flow performance shows areas of concern, with a significant decline in free cash flow due to high capital expenditures, resulting in negative free cash flow. The operating cash flow to net income ratio of 4.12 indicates efficient cash generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting potential cash flow challenges that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	371.53M	313.09M	292.95M	320.00M	159.19M	102.98M
Gross Profit	101.44M	80.95M	78.92M	69.80M	16.52M	10.19M
EBITDA	118.18M	95.95M	86.09M	72.24M	26.82M	-32.88M
Net Income	16.55M	15.81M	24.34M	21.16M	-868.00K	-29.34M
Balance Sheet
Total Assets	1.13B	1.12B	468.30M	462.58M	406.22M	411.90M
Cash, Cash Equivalents and Short-Term Investments	16.72M	114.25M	5.83M	8.84M	36.50M	60.37M
Total Debt	328.09M	328.88M	47.79M	20.48M	7.52M	8.20M
Total Liabilities	461.72M	456.15M	152.72M	145.45M	108.35M	96.42M
Stockholders Equity	361.29M	355.62M	205.98M	215.72M	203.15M	201.25M
Cash Flow
Free Cash Flow	-261.18M	-129.05M	23.87M	-13.41M	-3.17M	39.19M
Operating Cash Flow	68.21M	59.37M	88.26M	68.00M	16.47M	43.85M
Investing Cash Flow	-446.01M	-305.03M	-62.00M	-79.54M	-19.52M	-3.77M
Financing Cash Flow	391.09M	399.70M	-29.26M	-16.12M	-20.82M	-46.59M

Solaris Energy Infrastructure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEI, the sentiment is Positive. The current price of 33.26 is above the 20-day moving average (MA) of 29.12, above the 50-day MA of 29.79, and above the 200-day MA of 26.80, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 63.86 is Neutral, neither overbought nor oversold. The STOCH value of 84.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEI.

Solaris Energy Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNOW	79 Outperform	1.63B	19.77	7.18%	―	2.78%	-63.09%
OII	79 Outperform	2.43B	12.24	23.84%	―	8.14%	62.72%
XPRO	78 Outperform	1.40B	19.89	4.69%	―	2.67%	0.00%
SEI	67 Neutral	$2.18B	54.47	6.99%	1.44%	62.66%	-8.07%
LBRT	64 Neutral	1.76B	8.58	10.65%	2.94%	-9.32%	-48.26%
FLOC	57 Neutral	1.46B	―	0.00%	0.99%	0.00%	0.00%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%