Solaris Energy Infrastructure, Inc.
Solaris Energy Infrastructure, Inc. Fundamental Analysis
Solaris Energy Infrastructure, Inc. (SEI) shows weak financial fundamentals with a PE ratio of 56.67, profit margin of 7.07%, and ROE of 9.16%. The company generates $0.9B in annual revenue with moderate year-over-year growth of 6.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SEI's fundamental strength across five key dimensions:
Efficiency Score
WeakSEI struggles to generate sufficient returns from assets.
Valuation Score
ModerateSEI shows balanced valuation metrics.
Growth Score
ModerateSEI shows steady but slowing expansion.
Financial Health Score
ExcellentSEI maintains a strong and stable balance sheet.
Profitability Score
WeakSEI struggles to sustain strong margins.
Key Financial Metrics
Is SEI Expensive or Cheap?
P/E Ratio
SEI trades at 56.67 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SEI's PEG of 0.94 indicates potential undervaluation.
Price to Book
The market values Solaris Energy Infrastructure, Inc. at 3.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.58 times EBITDA. This signals the market has high growth expectations.
How Well Does SEI Make Money?
Net Profit Margin
For every $100 in sales, Solaris Energy Infrastructure, Inc. keeps $7.07 as profit after all expenses.
Operating Margin
Core operations generate 22.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.16 in profit for every $100 of shareholder equity.
ROA
Solaris Energy Infrastructure, Inc. generates $2.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Solaris Energy Infrastructure, Inc. produces operating cash flow of $207.07M, showing steady but balanced cash generation.
Free Cash Flow
Solaris Energy Infrastructure, Inc. generates weak or negative free cash flow of $-643.92M, restricting financial flexibility.
FCF Per Share
Each share generates $-8.97 in free cash annually.
FCF Yield
SEI converts -11.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
56.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How SEI Stacks Against Its Sector Peers
| Metric | SEI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 56.67 | 20.19 | Worse (Expensive) |
| ROE | 9.16% | 1019.00% | Weak |
| Net Margin | 7.07% | -44017.00% (disorted) | Weak |
| Debt/Equity | 1.00 | -0.65 (disorted) | Distorted |
| Current Ratio | 2.39 | 4.60 | Strong Liquidity |
| ROA | 2.43% | -11655350.00% (disorted) | Weak |
SEI outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Solaris Energy Infrastructure, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.75%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-68.15%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
-45.84%
Industry Style: Cyclical, Value, Commodity
Declining