Solaris Energy Infrastructure (SEI) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: 1.62%
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 50.5
• Beta (1Y): 1.83
• Revenue Growth: 62.66%
• EPS Growth: -8.07%
• Country: US
• Employees: 364
• Sector: Energy
• Sector Strength: 57
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.30
• Shares Outstanding: 44,603,740
• 10 Day Avg. Volume: 1,601,047
• 30 Day Avg. Volume: 1,837,285
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 5.01
• Enterprise Value/Gross Profit: 18.34
• Enterprise Value/Ebitda: 15.74
• 1Y Price Target: $42.29
• Price Target Upside: 41.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: $31.00 ▲(3.82% Upside)

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 EBITDA guidance pose risks.

Positive Factors

Expansion and Growth

SEI is rapidly expanding its fleet of mobile NG-fired turbines to meet load growth.

Joint Venture Benefits

The joint venture will own significant capacity, reducing SEI's capital expenditure and allowing for faster growth without needing high coupon debt or equity.

Negative Factors

Transformation Challenges

SEI is undergoing a transformation by creating a new division in Power Services, which may pose operational challenges.

Solaris Energy Infrastructure Business Overview & Revenue Model

Company Description

Solaris Energy Infrastructure (SEI) is a leading provider of renewable energy solutions, specializing in the development, construction, and operation of solar energy facilities. The company operates across various sectors, including utility-scale solar farms, commercial solar installations, and energy storage systems. SEI is dedicated to delivering sustainable energy solutions that reduce carbon emissions and promote energy independence for its clients, while also contributing to the global transition towards a greener economy.

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 financial performance with robust revenue growth and operational efficiency, as evidenced by an 18.7% revenue increase and improved gross profit margin. However, cash flow challenges due to high capital expenditures and negative free cash flow necessitate close monitoring.

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	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
EBITDA	95.95M	86.09M	72.24M	26.82M	-32.88M
Net Income	15.81M	24.34M	21.16M	-868.00K	-29.34M
Balance Sheet
Total Assets	1.12B	468.30M	462.58M	406.22M	411.90M
Cash, Cash Equivalents and Short-Term Investments	114.25M	5.83M	8.84M	36.50M	60.37M
Total Debt	328.88M	47.79M	20.48M	7.52M	8.20M
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

• Technical Analysis Sentiment: Positive
• Last Price: 29.86
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 29.86 is above the 20-day moving average (MA) of 29.34, below the 50-day MA of 29.93, and above the 200-day MA of 26.20, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 79.94 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	78 Outperform	$1.41B	20.42	4.78%	―	2.67%	―
INVX	72 Outperform	$1.15B	5.76	15.64%	―	82.86%	―
RES	71 Outperform	$1.03B	19.05	4.92%	3.42%	-2.74%	-54.52%
Sector *	65 Neutral	$15.26B	7.31	3.02%	5.32%	4.27%	-62.52%
SEI	64 Neutral	$2.02B	50.52	6.99%	1.62%	62.66%	-8.07%
HLX	64 Neutral	$928.95M	19.91	3.27%	―	-8.19%	―
WTTR	59 Neutral	$999.23M	25.58	4.18%	3.38%	-2.46%	-44.11%

Solaris Energy Infrastructure Corporate Events

Solaris Energy Secures $550M Loan Agreement

On May 23, 2025, Stateline Power, LLC, a joint venture involving Solaris Energy Infrastructure, entered into a significant loan and security agreement with Stonebriar Commercial Finance LLC. This agreement, which includes a loan of up to $550 million, is intended to fund capital expenditures and is secured by a lien on Stateline’s assets. The agreement imposes financial covenants on Stateline, including maintaining specific financial ratios, and is backed by a pledge of Stateline’s equity.