Solesence (SLSN) AI Stock Analysis

• Market Cap: $274.88M
• Dividend Yield: N/A
• Average Volume (3M): 73.63K
• Price to Earnings (P/E): 54.0
• Beta (1Y): 1.24
• Revenue Growth: 65.67%
• EPS Growth: N/A
• Country: US
• Employees: 98
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Household & Personal Products
• EPS (TTM): 0.04
• Shares Outstanding: 70,481,940
• 10 Day Avg. Volume: 64,160
• 30 Day Avg. Volume: 73,626
• PEG Ratio: -0.20
• Price to Book (P/B): 10.18
• Price to Sales (P/S): 2.91
• P/FCF Ratio: -58.81
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 5.93
• Enterprise Value/Gross Profit: 21.18
• Enterprise Value/Ebitda: 65.15
• 1Y Price Target: $4.00
• Price Target Upside: 2.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $4.00 ▲(2.56% Upside)

Solesence's overall stock score reflects strong revenue growth and strategic advancements, offset by operational challenges and valuation concerns. Financial performance is solid but impacted by cash flow issues, while technical indicators suggest a lack of strong momentum. The recent loan agreement expansion provides positive growth potential.

Solesence Business Overview & Revenue Model

Company Description

Solésence, Inc., formerly Nanophase Technologies Corporation, is a developer and manufacturer of clean, inclusive, mineral-based skincare and makeup products. The company partners with global and indie brands, leveraging its proprietary Active Stress Defense™ technology suite to bring environmental protection beauty products to market.

How the Company Makes Money

Solesence generates revenue primarily through the sale of its skincare products, which are marketed to both retail consumers and professional beauty establishments. Key revenue streams include direct-to-consumer online sales, wholesale distribution to salons and spas, and partnerships with major retailers for shelf space. Additionally, Solesence may engage in collaborations with dermatologists and skincare professionals to promote its products, further enhancing brand visibility and sales. The company also invests in research and development to expand its product line, which can lead to increased market share and higher earnings.

Solesence Financial Statement Overview

Summary

Solesence demonstrates solid revenue growth and production efficiency, but profitability is hampered by increased expenses and a negative free cash flow, indicating liquidity and cost management challenges.

Income Statement

Solesence has shown a positive revenue growth trend with a TTM revenue of $57.1M, a 9.1% increase from the previous year. The gross profit margin stands at a healthy 28%, indicating efficient production processes. However, the net profit margin decreased to 6% from 8% annually, reflecting increased expenses or reduced pricing power. The EBIT and EBITDA margins are 7.5% and 8.7% respectively, showing operational efficiency but indicating room for improvement in cost management to enhance net profitability.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.66, demonstrating a relatively low level of leverage compared to equity. The equity ratio of 26.6% suggests a balanced asset financing structure, but there is potential risk from the significant liabilities. Return on equity is a strong 22.6%, indicating effective utilization of shareholders' funds, yet the overall equity base could be strengthened further.

Cash Flow

Solesence's TTM free cash flow is negative at -$3.9M, despite an improvement in operating cash flow. Operating cash flow to net income ratio is negative, indicating cash flow challenges, possibly due to capital expenditure needs. The reliance on financing activities for cash flow highlights potential liquidity concerns, although it provides short-term financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.10M	52.35M	37.30M	37.32M	29.48M	17.12M
Gross Profit	15.99M	16.19M	7.83M	8.36M	8.69M	5.99M
EBITDA	5.20M	6.06M	-2.80M	-1.69M	3.96M	1.84M
Net Income	3.42M	4.24M	-4.39M	-2.62M	2.32M	493.33K
Balance Sheet
Total Assets	57.02M	50.00M	32.88M	33.56M	28.39M	13.54M
Cash, Cash Equivalents and Short-Term Investments	1.82M	1.41M	1.72M	2.19M	657.00K	956.75K
Total Debt	22.56M	15.30M	21.26M	18.11M	14.75M	7.57M
Total Liabilities	41.86M	35.06M	30.98M	27.91M	20.93M	10.81M
Stockholders Equity	15.16M	14.95M	1.90M	5.65M	7.46M	2.73M
Cash Flow
Free Cash Flow	-5.87M	-2.59M	-3.06M	-4.47M	447.00K	-2.94M
Operating Cash Flow	-1.40M	1.97M	-2.01M	-1.65M	2.32M	-2.06M
Investing Cash Flow	-4.34M	-4.56M	-1.05M	-2.82M	-1.87M	-878.00K
Financing Cash Flow	5.53M	2.27M	2.59M	6.00M	-747.00K	2.70M

Solesence Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLSN, the sentiment is Positive. The current price of 3.9 is above the 20-day moving average (MA) of 3.67, below the 50-day MA of 3.96, and above the 200-day MA of 2.99, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 54.50 is Neutral, neither overbought nor oversold. The STOCH value of 88.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLSN.

Solesence Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMT	69 Neutral	$148.54M	16.18	6.22%	―	-15.64%	-43.49%
NTIC	65 Neutral	$70.58M	24.79	4.18%	2.15%	3.46%	-34.80%
SLSN	63 Neutral	$274.88M	54.02	34.76%	―	65.67%	―
Sector *	53 Neutral	C$5.35B	6.47	11.95%	3.33%	3.80%	-1.28%
LWLG	48 Neutral	$278.30M	―	-65.80%	―	4.52%	6.57%
ALTO	46 Neutral	$82.04M	―	-28.22%	―	-12.70%	-74.32%
TSE	38 Underperform	$90.24M	―	103.25%	1.59%	-7.97%	13.42%

Solesence Corporate Events

Solésence Expands Loan Agreement for Growth Flexibility

On May 27, 2025, Solésence, Inc. amended its existing loan agreements, increasing its borrowing capacity from $14.2 million to $23.0 million and extending the maturity date to April 30, 2027. This expansion provides Solésence with financial flexibility to support strategic objectives such as procurement of raw materials, improving packaging lead times, and empowering brand partners, thereby enhancing its operational capabilities and growth potential.