EMEREN GROUP LTD (SOL)
US75971T3014 - ADR
We assign a fundamental rating of 4 out of 10 to SOL. SOL was compared to 41 industry peers in the Construction & Engineering industry. SOL scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SOL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SOL was profitable.
In the past year SOL has reported a negative cash flow from operations.
In multiple years SOL reported negative net income over the last 5 years.
In the past 5 years SOL reported 4 times negative operating cash flow.
1.2 Ratios
The Return On Assets of SOL (-1.53%) is worse than 63.41% of its industry peers.
Looking at the Return On Equity, with a value of -2.16%, SOL is doing worse than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.53% | ||
| ROE | -2.16% | ||
| ROIC | N/A |
ROA(3y)0.39%
ROA(5y)-0.22%
ROE(3y)0.79%
ROE(5y)-0.99%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SOL's Gross Margin of 26.92% is amongst the best of the industry. SOL outperforms 80.49% of its industry peers.
SOL's Gross Margin has improved in the last couple of years.
SOL does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 26.92% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.57%
GM growth 5Y12.76%
2. Health
2.1 Basic Checks
SOL does not have a ROIC to compare to the WACC, probably because it is not profitable.
SOL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SOL has an Altman-Z score of -0.29. This is a bad value and indicates that SOL is not financially healthy and even has some risk of bankruptcy.
SOL has a Altman-Z score of -0.29. This is amonst the worse of the industry: SOL underperforms 92.68% of its industry peers.
SOL has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
SOL's Debt to Equity ratio of 0.11 is amongst the best of the industry. SOL outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.29 |
ROIC/WACCN/A
WACC10.19%
2.3 Liquidity
SOL has a Current Ratio of 5.40. This indicates that SOL is financially healthy and has no problem in meeting its short term obligations.
SOL has a Current ratio of 5.40. This is amongst the best in the industry. SOL outperforms 100.00% of its industry peers.
SOL has a Quick Ratio of 5.40. This indicates that SOL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 5.40, SOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.4 | ||
| Quick Ratio | 5.4 |
3. Growth
3.1 Past
SOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 300.00%, which is quite impressive.
SOL shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.26%.
SOL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.86% yearly.
EPS 1Y (TTM)300%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-440%
Revenue 1Y (TTM)28.26%
Revenue growth 3Y-19.86%
Revenue growth 5Y-9.86%
Revenue growth Q2Q-51.72%
3.2 Future
SOL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 109.25% yearly.
Based on estimates for the next years, SOL will show a very strong growth in Revenue. The Revenue will grow by 29.51% on average per year.
EPS Next Y-176.95%
EPS Next 2Y132.61%
EPS Next 3Y109.25%
EPS Next 5YN/A
Revenue Next Year21.2%
Revenue Next 2Y30.1%
Revenue Next 3Y29.51%
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings ratio is 93.50, which means the current valuation is very expensive for SOL.
60.98% of the companies in the same industry are cheaper than SOL, based on the Price/Earnings ratio.
SOL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.28.
With a Price/Forward Earnings ratio of 4.94, the valuation of SOL can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOL indicates a rather cheap valuation: SOL is cheaper than 100.00% of the companies listed in the same industry.
SOL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.5 | ||
| Fwd PE | 4.94 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SOL's earnings are expected to grow with 109.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y132.61%
EPS Next 3Y109.25%
5. Dividend
5.1 Amount
SOL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EMEREN GROUP LTD
NYSE:SOL (5/3/2024, 7:19:12 PM)
After market: 1.88 +0.01 (+0.53%)1.87
+0.04 (+2.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap107.12M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.5 | ||
| Fwd PE | 4.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.53% | ||
| ROE | -2.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 26.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.4 | ||
| Quick Ratio | 5.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)300%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-176.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.26%
Revenue growth 3Y-19.86%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y