Stabilis Solutions (SLNG) AI Stock Analysis

• Market Cap: $93.35M
• Dividend Yield: N/A
• Average Volume (3M): 4.81K
• Price to Earnings (P/E): 60.9
• Beta (1Y): 0.66
• Revenue Growth: 7.30%
• EPS Growth: 208.99%
• Country: US
• Employees: 104
• Sector: Energy
• Sector Strength: 72
• Industry: Oil & Gas Integrated
• EPS (TTM): -0.09
• Shares Outstanding: 18,596,300
• 10 Day Avg. Volume: 5,397
• 30 Day Avg. Volume: 4,813
• PEG Ratio: 0.95
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.04
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 6.15
• Enterprise Value/Ebitda: 2.24
• 1Y Price Target: $12.00
• Price Target Upside: 139.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $5.50 ▲(9.56%Upside)

Stabilis Solutions' overall stock score is primarily influenced by its balanced financial position and strong cash flow management, which indicate resilience and potential for growth. However, the stock's high valuation and recent revenue decline present significant risks. The technical analysis suggests mixed signals, and while the earnings call noted strong sector growth and strategic investments, the decline in overall revenue and a GAAP net loss are concerning.

Positive Factors

Growth Opportunities

Stabilis has a meaningful growth opportunity due to a significant increase in the development of new containerships built to use LNG as a fuel.

Industry Trends

The company is expected to benefit from more ships using LNG as fuel, with a projected increase in the global containership fleet using LNG in the next few years.

Market Demand

Stabilis is experiencing incoming calls for quotes in most of its end markets, with significant contributions from aerospace, power generation, and marine customers.

Negative Factors

Operational Costs

Severance costs related to a previous CEO departure caused higher than expected selling, general, and administrative expenses.

Revenue Performance

4Q24 revenue was below forecast due to lower natural gas prices and gross profit was modestly below forecast.

Stabilis Solutions Business Overview & Revenue Model

Company Description

Stabilis Solutions, Inc., together with its subsidiaries, provides small-scale liquefied natural gas (LNG) production, distribution, and fueling services to various end markets in North America. It operates in two segments, LNG and Power Delivery. The company supplies LNG to the industrial, midstream, and oilfield sectors; and offers fuel solutions to industrial users of propane, diesel, and other crude-based fuel products, as well as provides cryogenic equipment rental and field services. It also provides electrical and instrumentation construction, and installation services; and builds electrical systems. The company serves aerospace, industrial, utilities and pipelines, mining, energy, commercial, and transportation markets. Stabilis Solutions, Inc. was founded in 2013 and is headquartered in Houston, Texas.

How the Company Makes Money

Stabilis Solutions generates revenue primarily through the sale and distribution of liquefied natural gas (LNG). Key revenue streams include the production of LNG at its facilities and subsequent sales to industrial, commercial, and transportation clients who use LNG as a cleaner alternative to traditional fuels. The company also earns revenue by providing transportation and logistics services for LNG, ensuring timely and efficient delivery to its customers. In addition, Stabilis Solutions may engage in strategic partnerships and joint ventures that enhance its market reach and operational capabilities, contributing to its overall earnings.

Stabilis Solutions Financial Statement Overview

Summary

Stabilis Solutions shows a balanced financial position with improving profitability, stable balance sheet metrics, and strong cash flow management. Despite a slight decline in annual revenue, the company's enhanced operational efficiency and effective cash utilization suggest resilience and potential for growth in the competitive Oil & Gas Integrated industry.

Income Statement

The income statement shows a positive trajectory, with notable improvements in profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 22.5%, and net profit margin is 2.16%, indicating manageable profitability. Revenue growth rate for the latest annual period is -3.3%, but the company has rebounded from earlier losses to a positive net income. An EBIT margin of 3.13% and EBITDA margin of 13.04% for TTM reflect stable operational efficiency with room for growth.

Balance Sheet

The balance sheet exhibits solid equity with a debt-to-equity ratio of 0.14, indicating low leverage and financial stability. Return on equity (ROE) is 2.32%, which shows potential for better returns. With an equity ratio of 79.35%, the company maintains a strong asset base and low reliance on debt, though there is limited growth in equity.

Cash Flow

Cash flow analysis reveals strong cash generation capabilities. The free cash flow growth rate is 33.67% TTM, demonstrating effective cash management. Operating cash flow to net income ratio is 7.04, and free cash flow to net income ratio is 3.97, indicating robust cash flow relative to earnings, positioning the company well for future investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
70.86M	73.29M	73.11M	98.82M	77.17M	41.55M
	Gross Profit
15.95M	14.08M	10.32M	12.46M	8.63M	2.50M
	EBIT
2.22M	3.39M	-812.00K	687.00K	-8.70M	-8.27M
	EBITDA
9.25M	12.23M	8.58M	8.51M	2.65M	3.46M
	Net Income Common Stockholders
1.53M	4.60M	125.00K	-1.19M	-7.80M	-6.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.00M	8.99M	5.37M	11.45M	2.06M	1.81M
	Total Assets
83.06M	85.58M	81.30M	96.58M	87.34M	80.31M
	Total Debt
9.10M	9.34M	9.61M	12.25M	13.04M	9.37M
	Net Debt
100.00K	356.00K	4.24M	798.00K	10.98M	7.56M
	Total Liabilities
17.15M	18.58M	19.49M	36.71M	26.28M	18.28M
	Stockholders Equity
65.91M	67.01M	61.81M	59.87M	61.06M	62.03M
Cash Flow		Free Cash Flow
6.08M	4.55M	-3.54M	10.77M	-2.91M	568.00K
	Operating Cash Flow
10.79M	13.69M	6.71M	14.70M	4.91M	1.34M
	Investing Cash Flow
-7.73M	-8.12M	-8.91M	-1.92M	-7.52M	-256.00K
	Financing Cash Flow
-2.29M	-1.91M	-3.88M	-2.25M	3.01M	-3.20M

Stabilis Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLNG, the sentiment is Negative. The current price of 5.02 is below the 20-day moving average (MA) of 5.47, below the 50-day MA of 5.24, and below the 200-day MA of 5.28, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 38.32 is Neutral, neither overbought nor oversold. The STOCH value of 26.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLNG.

Stabilis Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EC	83 Outperform	$19.75B	5.86	18.64%	64.53%	-2.26%	-20.04%
YPF	72 Outperform	$14.43B	8.42	15.54%	―	8.58%	―
TGS	71 Outperform	$4.08B	10.47	20.40%	―	37.43%	395.49%
NFG	70 Outperform	$7.60B	191.69	1.30%	2.45%	7.14%	-90.91%
SLNG	64 Neutral	$93.35M	60.92	2.37%	―	7.30%	208.99%
Sector *	58 Neutral	$7.56B	3.50	-4.45%	10.15%	0.79%	-49.51%
CGBS		$51.90M	―		―	―	―

Stabilis Solutions Corporate Events

Stabilis Solutions Reports Q1 2025 Financial Results

Stabilis Solutions reported its financial results for the first quarter of 2025, showing revenues of $17.3 million and a net loss of $1.6 million. Despite a year-over-year revenue decline due to planned downtime with a marine customer and the completion of a large project, the company saw strong demand in the aerospace and marine sectors, with a 13% revenue increase in these areas. The company is focused on expanding its capabilities in high-growth markets like marine, aerospace, and power generation, supported by strategic capital investments and a strong balance sheet.