Solaris Energy Infrastructure (SEI) AI Stock Analysis

• Market Cap: $3.78B
• Dividend Yield: 1.07%
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 61.7
• Beta (1Y): 2.13
• 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: 2,410,649
• 30 Day Avg. Volume: 2,084,335
• 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: 1.16
• Enterprise Value/Revenue: 8.17
• Enterprise Value/Gross Profit: 25.36
• Enterprise Value/Ebitda: 22.11
• 1Y Price Target: $67.20
• Price Target Upside: 21.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.55
• Revenue Forecast (FY): $767.71M

• Rating: 64 Neutral
• Price Target: $57.00 ▲(3.28% Upside)

The score is supported by strong technical uptrend signals and a positive earnings outlook with raised EBITDA guidance and expanding power capacity plans. The main constraints are financial quality concerns from deeply negative free cash flow and increased leverage, alongside a demanding valuation (high P/E and modest dividend yield).

Positive Factors

Revenue and Margin Recovery

Sustained top-line growth and materially improved operating margins indicate the core solar project business is scaling and capturing operating leverage. This stronger earnings power and turnaround from prior losses support durable cash generation potential if margins remain stable across new capacity additions.

Power Solutions Scale

Rapid capacity build to 2,200 MW is structural: larger fleet expands recurring PPA revenue, improves utilization economics, and increases bargaining power with customers and suppliers. Scale in Power Solutions also drives the majority of segment EBITDA, anchoring long-term profitability and cash flow resilience.

Strategic Funding & M&A

Securing substantial convertible debt and executing targeted acquisition(s) provides financing flexibility and capability expansion. Lower near-term financing costs and added technical assets support faster roll-out of projects and improved returns on invested capital, reducing execution funding risk for planned growth.

Negative Factors

Negative Free Cash Flow

Persistently negative free cash flow despite positive operating cash flow reflects heavy capex and working-capital strains tied to rapid expansion. If negative FCF continues, the company will remain dependent on external financing, compressing returns and increasing funding and refinancing risk over the medium term.

Rising Leverage

Material increase in leverage reduces financial flexibility and raises interest burden sensitivity, especially with negative FCF. Higher debt levels make the company more vulnerable to rate shocks or project delays and could constrain opportunistic investments or force more costly future funding.

Concentration & Operational Risks

Heavy revenue and EBITDA concentration in Power Solutions boosts exposure to that segment's execution and contract risk. Simultaneous Logistics weakness and stretched OEM lead times signal operational fragility: persistent supply constraints or underperformance in Logistics could impair growth pacing and margin sustainability.

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

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

Income statement strength (78) shows a strong operating recovery with sharp revenue growth and robust operating margins, but this is offset by balance-sheet risk (62) from higher leverage and especially weak cash generation (cash flow score 38) due to deeply negative free cash flow despite positive operating cash flow.

Income Statement

TTM (Trailing-Twelve-Months) results show strong momentum: revenue is up sharply (20.5%) with solid profitability (gross margin ~32%, EBITDA margin ~37%, EBIT margin ~23%). Net margin (~7.1%) is positive and improved versus prior years, reflecting a meaningful turnaround from earlier losses (2020–2021). Offsetting this, profitability has been somewhat volatile over the cycle (notably net margin was higher in 2023 than 2024), suggesting earnings power may be sensitive to operating conditions.

Balance Sheet

The balance sheet has expanded significantly, but leverage has moved up with it: TTM (Trailing-Twelve-Months) debt is roughly in line with equity (debt-to-equity ~1.0), a clear step-up from the low-leverage profile in 2020–2022. Returns on equity are positive (TTM ~9.2%) and improving versus 2024, but still not high enough to fully offset the increased balance-sheet risk from higher borrowing.

Cash Flow

Operating cash flow is positive and currently exceeds net income (TTM operating cash flow to net income ~1.16), which is a quality positive. However, free cash flow is deeply negative in TTM (Trailing-Twelve-Months) and deteriorated versus 2024, indicating heavy cash investment or working-capital needs that are overwhelming operating inflows. The sharp swing from positive free cash flow in 2023 to large outflows in 2024 and TTM raises funding and sustainability questions if this persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	538.80M	313.09M	292.95M	320.00M	159.19M	102.98M
Gross Profit	173.53M	80.95M	78.92M	69.80M	16.52M	10.19M
EBITDA	199.04M	95.95M	86.09M	72.24M	26.82M	-32.88M
Net Income	38.08M	15.81M	24.34M	21.16M	-868.00K	-29.34M
Balance Sheet
Total Assets	1.57B	1.12B	468.30M	462.58M	406.22M	411.90M
Cash, Cash Equivalents and Short-Term Investments	106.70M	114.25M	5.83M	8.84M	36.50M	60.37M
Total Debt	545.28M	328.88M	47.79M	20.48M	7.52M	8.20M
Total Liabilities	708.09M	456.15M	152.72M	145.45M	108.35M	96.42M
Stockholders Equity	546.55M	355.62M	205.98M	215.72M	203.15M	201.25M
Cash Flow
Free Cash Flow	-392.64M	-129.05M	23.87M	-13.41M	-3.17M	39.19M
Operating Cash Flow	126.27M	59.37M	88.26M	68.00M	16.47M	43.85M
Investing Cash Flow	-537.16M	-305.03M	-62.00M	-79.54M	-19.52M	-3.77M
Financing Cash Flow	401.06M	399.70M	-29.26M	-16.12M	-20.82M	-46.59M

Solaris Energy Infrastructure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.19
• 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 SEI, the sentiment is Positive. The current price of 55.19 is above the 20-day moving average (MA) of 53.64, above the 50-day MA of 49.76, and above the 200-day MA of 37.10, indicating a bullish trend. The MACD of 1.66 indicates Positive momentum. The RSI at 56.65 is Neutral, neither overbought nor oversold. The STOCH value of 44.96 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPRO	77 Outperform	$1.82B	27.09	4.60%	―	-1.24%	337.41%
DNOW	72 Outperform	$2.82B	17.36	8.10%	―	3.18%	-53.71%
FLOC	70 Outperform	$1.87B	39.93	―	1.32%	―	―
OII	69 Neutral	$3.00B	13.17	28.92%	―	8.71%	72.09%
LBRT	66 Neutral	$3.99B	28.47	9.21%	1.78%	-12.05%	-46.45%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SEI	64 Neutral	$3.78B	61.71	9.45%	1.07%	92.33%	116.22%