Solaris Energy Infrastructure (SEI) AI Stock Analysis

• Market Cap: $2.99B
• Dividend Yield: 1.1%
• Average Volume (3M): 3.68M
• Price to Earnings (P/E): 47.9
• Beta (1Y): 2.10
• Revenue Growth: 92.33%
• EPS Growth: 116.22%
• Country: US
• Employees: 364
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.31
• Shares Outstanding: 48,802,383
• 10 Day Avg. Volume: 3,365,629
• 30 Day Avg. Volume: 3,678,312
• 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: 0.93
• Enterprise Value/Revenue: 6.19
• Enterprise Value/Gross Profit: 20.50
• Enterprise Value/Ebitda: 18.33
• 1Y Price Target: $63.67
• Price Target Upside: 46.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.13
• Revenue Forecast (FY): $607.61M

• Rating: 69 Neutral
• Price Target: $58.00 ▲(33.00% Upside)

Solaris Energy Infrastructure's strong technical indicators and positive earnings call outlook are significant strengths, driving the stock's potential. However, high valuation metrics and financial performance challenges, particularly in cash flow management, temper the overall score. Recent corporate events present mixed implications, with strategic financial moves offset by regulatory concerns.

Positive Factors

Revenue Growth

Record revenue growth indicates strong market demand and effective execution, supporting long-term business expansion and financial health.

Strategic Expansion

Expanding power solutions capacity to 2,200 megawatts by 2028 enhances market position and supports future revenue growth.

Leadership Strength

The appointment of a Co-CEO with extensive sector experience strengthens leadership, aligning with growth strategies and operational goals.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential liquidity risks, which could hinder the company's ability to invest in growth and manage debt.

Supply Chain Constraints

Supply chain issues may impact project timelines and cost efficiency, affecting operational performance and profitability.

Unregistered Securities Issue

The unregistered securities challenge poses potential regulatory risks, which could impact investor confidence and future capital raising.

Solaris Energy Infrastructure Business Overview & Revenue Model

Company Description

Solaris Energy Infrastructure (SEI) is a leading provider of renewable energy solutions, focusing on the development, operation, and management of solar power facilities. The company operates in the clean energy sector, offering a range of services including solar project development, energy storage solutions, and power purchase agreements (PPAs). SEI is committed to sustainability and aims to support the transition towards a low-carbon economy by delivering innovative energy infrastructure that meets the growing demand for renewable energy.

How the Company Makes Money

SEI generates revenue primarily through long-term power purchase agreements (PPAs) with utilities and large commercial clients, ensuring a steady income stream from the energy produced at its solar facilities. The company also earns money by developing solar projects for third parties, charging fees for project management and consulting services. Additionally, SEI may benefit from government incentives and tax credits associated with renewable energy investments, which enhance its profitability. Strategic partnerships with other energy firms and technology providers further bolster its revenue potential by expanding its service offerings and market reach.

Solaris Energy Infrastructure Financial Statement Overview

Summary

Solaris Energy Infrastructure demonstrates strong revenue growth and operational efficiency, but profitability and cash flow management remain areas for improvement. The balance sheet shows moderate leverage, which could pose risks if not managed carefully. Overall, the company is on a positive growth trajectory but needs to address cash flow and profitability challenges to ensure long-term stability.

Income Statement

Solaris Energy Infrastructure has shown strong revenue growth with a 20.31% increase in TTM, indicating a positive trajectory. The gross profit margin improved to 30.19%, reflecting efficient cost management. However, the net profit margin is relatively low at 4.87%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy at 18.97% and 33.77% respectively, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.91, indicating moderate leverage. Return on equity improved to 7.61%, showing better utilization of equity. However, the equity ratio stands at 27.10%, suggesting a higher reliance on debt financing. Overall, the balance sheet reflects a stable but leveraged financial position.

Cash Flow

Operating cash flow is robust with a coverage ratio of 0.90, but the negative free cash flow of -$440.33 million is concerning. The free cash flow to net income ratio is -3.83, indicating cash flow challenges. Despite a 68.60% growth in free cash flow, the negative value highlights potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	446.98M	313.09M	292.95M	320.00M	159.19M	102.98M
Gross Profit	134.95M	80.95M	78.92M	69.80M	16.52M	10.19M
EBITDA	150.95M	95.95M	86.09M	72.24M	26.82M	-32.88M
Net Income	22.56M	15.81M	24.34M	21.16M	-868.00K	-29.34M
Balance Sheet
Total Assets	1.47B	1.12B	468.30M	462.58M	406.22M	411.90M
Cash, Cash Equivalents and Short-Term Investments	99.63M	114.25M	5.83M	8.84M	36.50M	60.37M
Total Debt	548.21M	328.88M	47.79M	20.48M	7.52M	8.20M
Total Liabilities	692.41M	456.15M	152.72M	145.45M	108.35M	96.42M
Stockholders Equity	399.14M	355.62M	205.98M	215.72M	203.15M	201.25M
Cash Flow
Free Cash Flow	-440.33M	-129.05M	23.87M	-13.41M	-3.17M	39.19M
Operating Cash Flow	73.52M	59.37M	88.26M	68.00M	16.47M	43.85M
Investing Cash Flow	-638.39M	-305.03M	-62.00M	-79.54M	-19.52M	-3.77M
Financing Cash Flow	698.86M	399.70M	-29.26M	-16.12M	-20.82M	-46.59M

Solaris Energy Infrastructure Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 43.61
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEI, the sentiment is Neutral. The current price of 43.61 is below the 20-day moving average (MA) of 48.49, below the 50-day MA of 49.33, and above the 200-day MA of 32.76, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 38.19 is Neutral, neither overbought nor oversold. The STOCH value of 10.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEI.

Solaris Energy Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPRO	77 Outperform	$1.44B	21.40	4.60%	―	-1.24%	337.41%
DNOW	76 Outperform	$2.56B	15.75	8.10%	―	3.18%	-53.71%
OII	73 Outperform	$2.41B	10.57	28.92%	―	8.71%	72.09%
LBRT	69 Neutral	$2.91B	15.97	9.21%	1.93%	-12.05%	-46.45%
SEI	69 Neutral	$2.99B	47.89	9.45%	1.10%	92.33%	116.22%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
FLOC	57 Neutral	$1.61B	34.84	―	1.34%	―	―

Solaris Energy Infrastructure Corporate Events

Solaris Energy Appoints Amanda Brock as Co-CEO

On October 16, 2025, Solaris Energy Infrastructure appointed Amanda M. Brock as Co-Chief Executive Officer and to the Board of Directors, following the passing of Mr. F. Gardner Parker. Ms. Brock, who has extensive experience in the global water, power, and energy sectors, will serve alongside Bill Zartler, the current Chairman and Co-CEO. Her appointment is seen as a strategic move to leverage her expertise in infrastructure management and team leadership, aligning with Solaris’s plans for significant operational growth.

Solaris Energy Faces Unregistered Securities Challenge

Solaris Energy Infrastructure announced that the shares of Class A common stock, which are issuable upon conversion of their Notes, have not been registered under the Securities Act. The company does not plan to file a registration statement for the resale of these Notes or the shares of Class A common stock, and anticipates future issuances will comply with Section 3(a)(9) of the Securities Act.

Solaris Energy Amends Revolving Credit Facility

On October 6, 2025, Solaris Energy Infrastructure amended its Revolving Credit Facility with Bank of America to allow the issuance of convertible debt and related securities. Additionally, the company identified an opportunity to purchase 80 MW of turbine capacity, which, combined with existing orders, will boost its total capacity to 500 MW by the second half of 2026.