SOLARIS OILFIELD INFRAST-A (SOI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOI - US83418M1036 - Common Stock
11.32 USD
-0.1 (-0.88%)
11.32 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SOI. SOI was compared to 62 industry peers in the Energy Equipment & Services industry. SOI has an average financial health and profitability rating. SOI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year SOI was profitable.
- SOI had a positive operating cash flow in the past year.
- In multiple years SOI reported negative net income over the last 5 years.
- SOI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SOI has a Return On Assets (4.07%) which is in line with its industry peers.
- SOI has a Return On Equity of 9.10%. This is comparable to the rest of the industry: SOI outperforms 54.24% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.25%, SOI is in the better half of the industry, outperforming 61.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 9.1% | ||
| ROIC | 8.25% |
ROA(3y)3.01%
ROA(5y)2.44%
ROE(3y)6.69%
ROE(5y)5.04%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Profit Margin value of 6.77%, SOI perfoms like the industry average, outperforming 57.63% of the companies in the same industry.
- In the last couple of years the Profit Margin of SOI has declined.
- SOI has a Operating Margin of 14.55%. This is in the better half of the industry: SOI outperforms 72.88% of its industry peers.
- SOI's Operating Margin has declined in the last couple of years.
- SOI has a Gross Margin of 39.96%. This is amongst the best in the industry. SOI outperforms 81.36% of its industry peers.
- In the last couple of years the Gross Margin of SOI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.55% | ||
| PM (TTM) | 6.77% | ||
| GM | 39.96% |
OM growth 3YN/A
OM growth 5Y-19.03%
PM growth 3YN/A
PM growth 5Y-18.13%
GM growth 3Y2.57%
GM growth 5Y-10.68%
2. Health
2.1 Basic Checks
- SOI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, SOI has less shares outstanding
- The debt/assets ratio for SOI is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.17 indicates that SOI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SOI has a Altman-Z score (2.17) which is in line with its industry peers.
- SOI has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
- SOI has a Debt to FCF ratio of 0.38. This is amongst the best in the industry. SOI outperforms 93.22% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that SOI is not too dependend on debt financing.
- SOI's Debt to Equity ratio of 0.01 is amongst the best of the industry. SOI outperforms 93.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.98
WACC8.45%
2.3 Liquidity
- SOI has a Current Ratio of 1.25. This is a normal value and indicates that SOI is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.25, SOI is doing worse than 83.05% of the companies in the same industry.
- A Quick Ratio of 1.10 indicates that SOI should not have too much problems paying its short term obligations.
- SOI has a worse Quick ratio (1.10) than 72.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- The earnings per share for SOI have decreased strongly by -33.68% in the last year.
- Measured over the past years, SOI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.26% on average per year.
- The Revenue for SOI has decreased by -18.29% in the past year. This is quite bad
- SOI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.24% yearly.
EPS 1Y (TTM)-33.68%
EPS 3Y246.22%
EPS 5Y-13.26%
EPS Q2Q%-48%
Revenue 1Y (TTM)-18.29%
Revenue growth 3Y41.68%
Revenue growth 5Y8.24%
Sales Q2Q%-4.3%
3.2 Future
- The Earnings Per Share is expected to grow by 11.40% on average over the next years. This is quite good.
- SOI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.09% yearly.
EPS Next Y-22.55%
EPS Next 2Y-19.31%
EPS Next 3Y11.4%
EPS Next 5YN/A
Revenue Next Year-5.52%
Revenue Next 2Y1.01%
Revenue Next 3Y-0.09%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 17.97 indicates a rather expensive valuation of SOI.
- SOI's Price/Earnings is on the same level as the industry average.
- SOI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 20.95, SOI is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, SOI is valued a bit more expensive than 79.66% of the companies in the same industry.
- SOI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
- SOI's Enterprise Value to EBITDA ratio is in line with the industry average.
- 69.49% of the companies in the same industry are more expensive than SOI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.6 | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.31%
EPS Next 3Y11.4%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.24%, SOI is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.17, SOI pays a better dividend. On top of this SOI pays more dividend than 91.53% of the companies listed in the same industry.
- SOI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
5.2 History
- The dividend of SOI is nicely growing with an annual growth rate of 35.87%!
- SOI has been paying a dividend for over 5 years, so it has already some track record.
- As SOI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)35.87%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
- SOI pays out 111.61% of its income as dividend. This is not a sustainable payout ratio.
- SOI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP111.61%
EPS Next 2Y-19.31%
EPS Next 3Y11.4%
SOLARIS OILFIELD INFRAST-A / SOI FAQ
What is the ChartMill fundamental rating of SOLARIS OILFIELD INFRAST-A (SOI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SOI.
What is the valuation status for SOI stock?
ChartMill assigns a valuation rating of 2 / 10 to SOLARIS OILFIELD INFRAST-A (SOI). This can be considered as Overvalued.
What is the profitability of SOI stock?
SOLARIS OILFIELD INFRAST-A (SOI) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for SOI stock?
The Price/Earnings (PE) ratio for SOLARIS OILFIELD INFRAST-A (SOI) is 17.97 and the Price/Book (PB) ratio is 2.43.
How sustainable is the dividend of SOLARIS OILFIELD INFRAST-A (SOI) stock?
The dividend rating of SOLARIS OILFIELD INFRAST-A (SOI) is 6 / 10 and the dividend payout ratio is 111.61%.