SOLARIS OILFIELD INFRAST-A (SOI) Stock Fundamental Analysis
NYSE:SOI - New York Stock Exchange, Inc. - US83418M1036 - Common Stock - Currency: USD
Taking everything into account, SOI scores 4 out of 10 in our fundamental rating. SOI was compared to 63 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of SOI get a neutral evaluation. Nothing too spectacular is happening here. 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.
The reported net income has been mixed in the past 5 years: SOI reported negative net income in multiple years.
Each year in the past 5 years SOI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.07%, SOI is in line with its industry, outperforming 52.54% of the companies in the same industry.
SOI has a Return On Equity (9.10%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 8.25%, SOI is doing good in 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
SOI has a Profit Margin (6.77%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SOI has declined.
Looking at the Operating Margin, with a value of 14.55%, SOI is in the better half of the industry, outperforming 72.88% of the companies in the same industry.
SOI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 39.96%, SOI belongs to the top of the industry, outperforming 81.36% of the companies in the same industry.
SOI's Gross Margin has declined in the last couple of years.
| 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
Compared to 5 years ago, SOI has less shares outstanding
SOI has a worse debt/assets ratio than last year.
2.2 Solvency
SOI has an Altman-Z score of 2.17. This is not the best score and indicates that SOI is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.17, SOI is in line with its industry, outperforming 57.63% of the companies in the same industry.
The Debt to FCF ratio of SOI is 0.38, which is an excellent value as it means it would take SOI, only 0.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.38, SOI belongs to the top of the industry, outperforming 93.22% of the companies in the same industry.
SOI has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.01, SOI belongs to the top of the industry, outperforming 93.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.98
WACC8.45%
2.3 Liquidity
A Current Ratio of 1.25 indicates that SOI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.25, SOI is not doing good in the industry: 83.05% of the companies in the same industry are doing better.
A Quick Ratio of 1.10 indicates that SOI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.10, SOI is doing worse than 72.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
SOI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.68%.
The earnings per share for SOI have been decreasing by -13.26% on average. This is quite bad
Looking at the last year, SOI shows a very negative growth in Revenue. The Revenue has decreased by -18.29% in the last year.
The Revenue has been growing by 8.24% on average over the past years. This is quite good.
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.
Compared to the rest of the industry, the Price/Earnings ratio of SOI is on the same level as its industry peers.
SOI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
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 the industry average as 79.66% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SOI is valued at the same level.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOI indicates a somewhat cheap valuation: SOI is cheaper than 69.49% of the companies listed in the same industry.
| 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
SOI has a Yearly Dividend Yield of 4.24%, which is a nice return.
Compared to an average industry Dividend Yield of 3.54, 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 2.37.
| 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
111.61% of the earnings are spent on dividend by SOI. 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%
11.32
-0.1 (-0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners54.58%
Inst Owner Change0%
Ins Owners39.26%
Ins Owner Change0%
Market Cap498.08M
Analysts83.33
Price Target12.92 (14.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Yearly Dividend0.47
Dividend Growth(5Y)35.87%
DP111.61%
Div Incr Years1
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.53%
Min EPS beat(2)6.97%
Max EPS beat(2)12.09%
EPS beat(4)2
Avg EPS beat(4)-2.84%
Min EPS beat(4)-19.86%
Max EPS beat(4)12.09%
EPS beat(8)5
Avg EPS beat(8)0.42%
EPS beat(12)9
Avg EPS beat(12)35.89%
EPS beat(16)11
Avg EPS beat(16)25.22%
Revenue beat(2)2
Avg Revenue beat(2)9.53%
Min Revenue beat(2)7.63%
Max Revenue beat(2)11.43%
Revenue beat(4)2
Avg Revenue beat(4)1.01%
Min Revenue beat(4)-10.7%
Max Revenue beat(4)11.43%
Revenue beat(8)2
Avg Revenue beat(8)-2.58%
Revenue beat(12)6
Avg Revenue beat(12)5.68%
Revenue beat(16)10
Avg Revenue beat(16)9.34%
PT rev (1m)18.75%
PT rev (3m)18.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.48%
EPS NY rev (1m)0%
EPS NY rev (3m)18.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.97 | ||
| Fwd PE | 20.95 | ||
| P/S | 1.81 | ||
| P/FCF | 9.6 | ||
| P/OCF | 6.21 | ||
| P/B | 2.43 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)0.63
EY5.57%
EPS(NY)0.54
Fwd EY4.77%
FCF(TTM)1.18
FCFY10.41%
OCF(TTM)1.82
OCFY16.1%
SpS6.25
BVpS4.65
TBVpS4.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 9.1% | ||
| ROCE | 10.05% | ||
| ROIC | 8.25% | ||
| ROICexc | 8.36% | ||
| ROICexgc | 8.65% | ||
| OM | 14.55% | ||
| PM (TTM) | 6.77% | ||
| GM | 39.96% | ||
| FCFM | 18.87% |
ROA(3y)3.01%
ROA(5y)2.44%
ROE(3y)6.69%
ROE(5y)5.04%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-13.91%
ROICexc growth 3YN/A
ROICexc growth 5Y-13.51%
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%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.38 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 74.14% | ||
| Cap/Sales | 10.3% | ||
| Interest Coverage | 11.86 | ||
| Cash Conversion | 102.56% | ||
| Profit Quality | 278.61% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.17 |
F-Score6
WACC8.45%
ROIC/WACC0.98
Cap/Depr(3y)172.59%
Cap/Depr(5y)132.98%
Cap/Sales(3y)19.91%
Cap/Sales(5y)15.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.68%
EPS 3Y246.22%
EPS 5Y-13.26%
EPS Q2Q%-48%
EPS Next Y-22.55%
EPS Next 2Y-19.31%
EPS Next 3Y11.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.29%
Revenue growth 3Y41.68%
Revenue growth 5Y8.24%
Sales Q2Q%-4.3%
Revenue Next Year-5.52%
Revenue Next 2Y1.01%
Revenue Next 3Y-0.09%
Revenue Next 5YN/A
EBIT growth 1Y-26.94%
EBIT growth 3YN/A
EBIT growth 5Y-12.37%
EBIT Next Year70.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y657.7%
FCF growth 3Y-13.31%
FCF growth 5YN/A
OCF growth 1Y129.73%
OCF growth 3Y27%
OCF growth 5Y-5.03%