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Solaris Energy Infrastructure (SEI)
NYSE:SEI
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Solaris Energy Infrastructure
(NYSE:SEI)
68Neutral
Positive Factors
Expansion and Growth
SEI is expanding rapidly by operating a fleet of mobile NG-fired turbines to meet increasing load demands.
Joint Venture Benefits
The joint venture reduces SEI's capital expenditure and supports faster growth without the need for high-interest debt or equity.
Negative Factors
Market Dependence
SEI's reliance on the electrification movement and AI data center demand could pose challenges if these markets do not grow as expected.
Transformation Challenges
SEI is undergoing a transformation, which might involve risks associated with integrating new business areas such as Power Services.
Solaris Energy Infrastructure (SEI) vs. S&P 500 (SPY)
Market Cap
$1.18B
Dividend Yield2.27%
Average Volume (3M)1.96M
Price to Earnings (P/E)34.6
Beta (1Y)1.98
Revenue Growth33.59%
EPS Growth-27.16%
CountryUS
Employees364
SectorEnergy
Sector Strength47
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.19
Shares Outstanding38,437,830
10 Day Avg. Volume1,833,347
30 Day Avg. Volume1,960,215
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.82
Price to Cash Flow (P/CF)28.80
P/FCF Ratio0.00
Enterprise Value/Market Cap0.72
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit10.49
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.16Price Target Upside89.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Solaris Energy Infrastructure Business Overview & Revenue Model
Company DescriptionSolaris Energy Infrastructure (SEI) is a leading company in the renewable energy sector, specializing in the development, construction, and management of solar energy projects. The company focuses on providing sustainable energy solutions by harnessing solar power to generate clean electricity for residential, commercial, and industrial clients. SEI is committed to advancing the transition to renewable energy sources and reducing carbon emissions through its innovative solar technologies and extensive project portfolio.
How the Company Makes MoneySolaris Energy Infrastructure (SEI) makes money primarily through the sale of solar-generated electricity and the development of solar power projects. The company's key revenue streams include power purchase agreements (PPAs) with utility companies, where SEI sells electricity generated from its solar farms at agreed-upon rates. Additionally, SEI generates income by leasing or selling solar energy systems to residential and commercial clients. The company may also receive incentives, tax credits, and subsidies from government programs aimed at promoting renewable energy adoption. Significant partnerships with technology providers, financial institutions, and construction firms enhance SEI's ability to efficiently deploy and manage solar projects, contributing to its financial success.
Solaris Energy Infrastructure Financial Statement Overview
Summary
Solaris Energy Infrastructure shows solid revenue growth and operational efficiency. However, increased debt levels and negative free cash flow highlight financial challenges that need addressing.Income Statement
Solaris Energy Infrastructure has shown consistent revenue growth with a notable increase of 6.88% from 2023 to 2024. The gross profit margin for 2024 is 25.85%, while the net profit margin stands at 5.05%. The EBIT margin has improved to 16.87%, and the EBITDA margin is robust at 30.64%. Despite these positive trends, the net income has decreased compared to the previous year, indicating some challenges in profitability.75
Positive
Balance Sheet
The company's debt-to-equity ratio increased significantly to 0.92 in 2024, reflecting higher leverage. Return on Equity (ROE) is healthy at 4.45%. The equity ratio is 31.67%, indicating a moderate reliance on equity for financing. While the company maintains a solid equity base, the increased debt level poses a potential risk.65
Positive
Cash Flow
Solaris Energy Infrastructure experienced a decline in free cash flow, from $23.87 million in 2023 to negative $129.05 million in 2024, reflecting significant capital expenditures. The operating cash flow to net income ratio is 3.75, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is negative due to high capital spending.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 313.09M | 292.95M | 320.00M | 159.19M | 102.98M | Gross Profit |
| 80.95M | 78.92M | 69.80M | 16.52M | 10.19M | EBIT |
| 52.82M | 49.90M | 41.80M | -387.00K | -59.90M | EBITDA |
| 95.95M | 86.09M | 72.24M | 26.82M | -32.88M | Net Income Common Stockholders |
| 15.81M | 24.34M | 21.16M | -868.00K | -29.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 114.25M | 5.83M | 8.84M | 36.50M | 60.37M | Total Assets |
| 1.12B | 468.30M | 462.58M | 406.22M | 411.90M | Total Debt |
| 328.88M | 47.79M | 20.48M | 7.52M | 8.20M | Net Debt |
| 214.62M | 41.96M | 11.65M | -28.98M | -52.17M | Total Liabilities |
| 456.15M | 152.72M | 145.45M | 108.35M | 96.42M | Stockholders Equity |
| 355.62M | 205.98M | 215.72M | 203.15M | 201.25M |
| Cash Flow | Free Cash Flow | |||
| -129.05M | 23.87M | -13.41M | -3.17M | 39.19M | Operating Cash Flow |
| 59.37M | 88.26M | 68.00M | 16.47M | 43.85M | Investing Cash Flow |
| -305.03M | -62.00M | -79.54M | -19.52M | -3.77M | Financing Cash Flow |
| 399.70M | -29.26M | -16.12M | -20.82M | -46.59M |
Solaris Energy Infrastructure Technical Analysis
Positive
21.14
Price Trends
23.24
Negative
25.83
Negative
19.91
Positive
Market Momentum
-0.48
Negative
52.76
Neutral
64.55
Neutral
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 21.14 is above the 20-day moving average (MA) of 18.83, below the 50-day MA of 23.24, and above the 200-day MA of 19.91, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 64.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEI.
Solaris Energy Infrastructure Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.07B | 8.43 | 10.07% | ― | 49.31% | 10605.17% | |
73 Outperform | $1.07B | 13.80 | 7.06% | 3.38% | -9.78% | -49.45% | |
68 Neutral | $1.18B | 34.56 | 5.52% | 2.27% | 33.59% | -27.16% | |
68 Neutral | $961.21M | 18.88 | 3.73% | ― | 13.22% | ― | |
66 Neutral | $950.10M | 11.42 | 5.64% | ― | 0.34% | ― | |
63 Neutral | $1.04B | 28.95 | 3.91% | 3.05% | -8.41% | -58.49% | |
56 Neutral | $6.92B | 3.31 | -4.49% | 6.03% | -0.35% | -47.83% |
* Energy Sector Average
Performance Comparison
SEI
Solaris Energy Infrastructure
22.95
14.24
163.49%
INVX
Innovex International
15.36
-3.24
-17.42%
HLX
Helix Energy
6.27
-4.68
-42.74%
RES
RPC
4.86
-1.74
-26.36%
XPRO
Expro Group Holdings
8.33
-11.11
-57.15%
WTTR
Select Energy Services
8.72
-0.28
-3.11%
Solaris Energy Infrastructure Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 2.77%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call indicates a strong performance with significant growth in both power and logistics segments, highlighted by a major upsizing of a contract and increased revenue. However, there are concerns about potential softness in oil-directed activity and challenges in the supply chain. Overall, the positive aspects outweigh the negative ones.Q1-2025 Updates
Positive Updates
Upsizing of Power Generation Contract
Solaris upsized its commercial contract from 500 megawatts to 900 megawatts for a data center campus, extending the initial tender from six to seven years.
Strong Performance in Logistics Segment
Solaris Logistics had a strong first quarter with system activity up over 25% sequentially, driven by new customer wins and the adoption of the top-fill system.
Increase in Revenue and EBITDA
Solaris generated total revenue of $126 million, reflecting a 31% increase from the prior quarter, with adjusted EBITDA of $47 million, representing a 25% increase.
New Capacity Secured for Future Growth
Solaris secured approximately 330 megawatts of additional generation capacity from its manufacturing partner, expected to be delivered in the second half of 2026.
Significant Free Cash Flow Generation
Solaris continued to harvest significant free cash flow from fleet investments made in prior years, bolstering the company's financial position.
Negative Updates
Potential Impact of Commodity Price Softness
Solaris observed some operators responding to recent commodity price softness by delaying jobs or reducing the number of fractures expected in the second half of the year.
Tight Supply Chain for Power Generation Equipment
OEM supply chain for power generation equipment has gotten progressively tighter, posing challenges in securing additional capacity.
Oil-Directed Activity Softness
There is an expectation of oil-directed activity softening in the third quarter should commodity prices remain at or below current levels.
Company Guidance
During the Solaris First Quarter 2025 Earnings Conference Call, the company provided detailed guidance on several key metrics. Solaris announced an upsized commercial contract for its power solutions business, increasing from approximately 500 megawatts to 900 megawatts, with an extended contract term of seven years. This expansion brings the total pro forma capacity to approximately 1,700 megawatts, with Solaris owning around 1,250 megawatts. The average tenor for their power solutions contracts now exceeds five years, a significant increase from the prior average. The company expects to generate consolidated annual run-rate adjusted EBITDA of $575 million to $600 million, with Solaris' net portion estimated at $440 million to $465 million. First-quarter revenue was reported at $126 million, a 31% increase from the previous quarter, while adjusted EBITDA increased by 25% to $47 million. For the second quarter, Solaris anticipates adjusted EBITDA between $50 million and $55 million, and between $55 million and $60 million for the third quarter. Additionally, the company secured a senior secured term loan facility of up to $550 million to support capital expenditures related to the joint venture. The guidance reflects Solaris' strong performance and growth strategy in both its power and logistics segments.Solaris Energy Infrastructure Corporate Events
M&A TransactionsFinancial Disclosures
Solaris Energy Infrastructure Completes Major Acquisition
Neutral
Apr 3, 2025
On September 11, 2024, Solaris Energy Infrastructure completed the acquisition of Mobile Energy Rental LLC, a move that reflects in their financial statements for the year ended December 31, 2024. The acquisition, valued at $60 million in cash and additional equity considerations, is expected to impact Solaris’s financial operations significantly, with adjustments made for refinancing existing debt and funding the transaction. The pro forma financial statements illustrate the anticipated effects of the acquisition, although these are preliminary and subject to change.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.