Solution Financial Inc.
Solution Financial Inc. Fundamental Analysis
Solution Financial Inc. (SLNFF) shows weak financial fundamentals with a PE ratio of 53.55, profit margin of 2.78%, and ROE of 2.61%. The company generates $0.0B in annual revenue with weak year-over-year growth of -15.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 1.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SLNFF's fundamental strength across five key dimensions:
Efficiency Score
WeakSLNFF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSLNFF shows balanced valuation metrics.
Growth Score
WeakSLNFF faces weak or negative growth trends.
Financial Health Score
ModerateSLNFF shows balanced financial health with some risks.
Profitability Score
WeakSLNFF struggles to sustain strong margins.
Key Financial Metrics
Is SLNFF Expensive or Cheap?
P/E Ratio
SLNFF trades at 53.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SLNFF's PEG of 1.27 indicates fair valuation.
Price to Book
The market values Solution Financial Inc. at 1.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.96 times EBITDA. This is generally considered low.
How Well Does SLNFF Make Money?
Net Profit Margin
For every $100 in sales, Solution Financial Inc. keeps $2.78 as profit after all expenses.
Operating Margin
Core operations generate 12.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.61 in profit for every $100 of shareholder equity.
ROA
Solution Financial Inc. generates $0.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Solution Financial Inc. generates limited operating cash flow of $-2.82M, signaling weaker underlying cash strength.
Free Cash Flow
Solution Financial Inc. generates weak or negative free cash flow of $-2.86M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.03 in free cash annually.
FCF Yield
SLNFF converts -9.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How SLNFF Stacks Against Its Sector Peers
| Metric | SLNFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.55 | 25.22 | Worse (Expensive) |
| ROE | 2.61% | 1239.00% | Weak |
| Net Margin | 2.78% | -45860.00% (disorted) | Weak |
| Debt/Equity | 1.79 | 0.75 | Weak (High Leverage) |
| Current Ratio | 2.89 | 10.39 | Strong Liquidity |
| ROA | 0.85% | -1489876.00% (disorted) | Weak |
SLNFF 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 Solution Financial Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-3.51%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-11.04%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-191.06%
Industry Style: Cyclical, Value, Infrastructure
Declining