SOLARIS ENERGY INFRASTRUCTUR (SEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SEI - US83418M1036 - Common Stock
56.95 USD
-0.05 (-0.09%)
57.07 USD
+0.12 (+0.21%)
SEI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of SEI get a neutral evaluation. Nothing too spectacular is happening here. SEI is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- SEI had positive earnings in the past year.
- SEI had a positive operating cash flow in the past year.
- In multiple years SEI reported negative net income over the last 5 years.
- SEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of SEI (2.32%) is comparable to the rest of the industry.
- With a Return On Equity value of 6.65%, SEI perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
- SEI has a Return On Invested Capital of 6.31%. This is in the better half of the industry: SEI outperforms 62.90% of its industry peers.
- SEI had an Average Return On Invested Capital over the past 3 years of 7.06%. This is significantly below the industry average of 12.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 6.65% | ||
| ROIC | 6.31% |
ROA(3y)3.55%
ROA(5y)0.65%
ROE(3y)8.27%
ROE(5y)1.93%
ROIC(3y)7.06%
ROIC(5y)N/A
1.3 Margins
- SEI has a Profit Margin of 6.75%. This is in the better half of the industry: SEI outperforms 69.35% of its industry peers.
- SEI's Profit Margin has declined in the last couple of years.
- SEI has a better Operating Margin (21.12%) than 85.48% of its industry peers.
- In the last couple of years the Operating Margin of SEI has declined.
- SEI has a Gross Margin of 46.60%. This is amongst the best in the industry. SEI outperforms 88.71% of its industry peers.
- In the last couple of years the Gross Margin of SEI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.12% | ||
| PM (TTM) | 6.75% | ||
| GM | 46.6% |
OM growth 3YN/A
OM growth 5Y-21.05%
PM growth 3YN/A
PM growth 5Y-26.18%
GM growth 3Y14.25%
GM growth 5Y-8.53%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SEI is destroying value.
- Compared to 1 year ago, SEI has more shares outstanding
- The number of shares outstanding for SEI has been increased compared to 5 years ago.
- SEI has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.02 indicates that SEI is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.02, SEI is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
- A Debt/Equity ratio of 0.94 indicates that SEI is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.94, SEI is doing worse than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.02 |
ROIC/WACC0.72
WACC8.74%
2.3 Liquidity
- SEI has a Current Ratio of 2.39. This indicates that SEI is financially healthy and has no problem in meeting its short term obligations.
- SEI has a better Current ratio (2.39) than 72.58% of its industry peers.
- A Quick Ratio of 2.28 indicates that SEI has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 2.28, SEI is doing good in the industry, outperforming 75.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 92.31% over the past year.
- SEI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.51% yearly.
- SEI shows a strong growth in Revenue. In the last year, the Revenue has grown by 54.81%.
- Measured over the past years, SEI shows a small growth in Revenue. The Revenue has been growing by 5.31% on average per year.
EPS 1Y (TTM)92.31%
EPS 3YN/A
EPS 5Y-19.51%
EPS Q2Q%325%
Revenue 1Y (TTM)54.81%
Revenue growth 3Y25.29%
Revenue growth 5Y5.31%
Sales Q2Q%122.4%
3.2 Future
- The Earnings Per Share is expected to grow by 69.98% on average over the next years. This is a very strong growth
- SEI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 40.30% yearly.
EPS Next Y141.54%
EPS Next 2Y81.17%
EPS Next 3Y83.3%
EPS Next 5Y69.98%
Revenue Next Year95.37%
Revenue Next 2Y57.86%
Revenue Next 3Y51.31%
Revenue Next 5Y40.3%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 56.95, SEI can be considered very expensive at the moment.
- 66.13% of the companies in the same industry are cheaper than SEI, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, SEI is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 35.41, the valuation of SEI can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SEI is on the same level as its industry peers.
- SEI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.95 | ||
| Fwd PE | 35.41 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SEI indicates a rather expensive valuation: SEI more expensive than 83.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.62 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as SEI's earnings are expected to grow with 83.30% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y81.17%
EPS Next 3Y83.3%
5. Dividend
5.1 Amount
- SEI has a yearly dividend return of 0.87%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.17, SEI pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, SEI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
- The dividend of SEI decreases each year by -8.45%.
- SEI has been paying a dividend for over 5 years, so it has already some track record.
- SEI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-8.45%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
- SEI pays out 52.39% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP52.39%
EPS Next 2Y81.17%
EPS Next 3Y83.3%
SOLARIS ENERGY INFRASTRUCTUR / SEI FAQ
What is the fundamental rating for SEI stock?
ChartMill assigns a fundamental rating of 5 / 10 to SEI.
What is the valuation status of SOLARIS ENERGY INFRASTRUCTUR (SEI) stock?
ChartMill assigns a valuation rating of 2 / 10 to SOLARIS ENERGY INFRASTRUCTUR (SEI). This can be considered as Overvalued.
What is the profitability of SEI stock?
SOLARIS ENERGY INFRASTRUCTUR (SEI) has a profitability rating of 5 / 10.
What is the financial health of SOLARIS ENERGY INFRASTRUCTUR (SEI) stock?
The financial health rating of SOLARIS ENERGY INFRASTRUCTUR (SEI) is 4 / 10.
What is the earnings growth outlook for SOLARIS ENERGY INFRASTRUCTUR?
The Earnings per Share (EPS) of SOLARIS ENERGY INFRASTRUCTUR (SEI) is expected to grow by 141.54% in the next year.