Solaris Energy Infrastructure (SEI) and Its Competitors Financial Analysis

Solaris Energy Infrastructure (NASDAQ:SEI) operates in the publicly-traded sector, specifically in the "Oil & gas field machinery" industry. This article examines how Solaris Energy Infrastructure stacks up against its competitors in various financial aspects, including valuation, profitability, risk, institutional ownership, earnings, dividends, and analyst recommendations.

Analyst Recommendations

Current recommendations and price targets for Solaris Energy Infrastructure and its competitors reveal some insights. Solaris Energy Infrastructure has 0 sell ratings, 0 hold ratings, 2 buy ratings, and a rating score of 3.00. In comparison, the overall group of similar companies holds 191 sell ratings, 1,395 hold ratings, 1,687 buy ratings, and a rating score of 2.48. The consensus price target for Solaris Energy Infrastructure is $30.00, representing a potential upside of 11.65%, which is notably lower than the average upside of 33.48% for the "Oil & gas field machinery" sector.

Volatility & Risk

The volatility of Solaris Energy Infrastructure is indicated by a beta of 1.45, making its stock 45% more volatile than the S&P 500 index. In comparison, its competitors have an average beta of 1.42, suggesting similar volatility levels in the industry.

Profitability

Regarding profitability, Solaris Energy Infrastructure has net margins of 4.80%, a return on equity of 6.66%, and a return on assets of 4.12%. Comparatively, its competitors average net margins of 2.62%, a return on equity of 7.27%, and a return on assets of 4.56%. This shows Solaris is more profitable in terms of net margins but less effective at generating equity returns.

Dividends

Solaris Energy Infrastructure pays an annual dividend of $0.48 per share, yielding 1.8%. This payout ratio, however, stands at 109.1%, indicating that the company's earnings may not sufficiently cover future dividends. In contrast, other companies in the same sector pay an average dividend yield of 1.5% while distributing only 23.2% of their earnings as dividends.

Valuation and Earnings

In terms of gross revenue, Solaris Energy Infrastructure reported $280.14 million and a net income of $24.34 million, with a price/earnings ratio of 61.07. This contrasts with its competitors, who report higher revenues of $4.39 billion but a net loss of $154.22 million, along with a much lower price/earnings ratio of 12.51.

Institutional and Insider Ownership

Institutional investors hold 67.4% of Solaris Energy Infrastructure's shares, with insiders holding 34.7%. These figures are slightly lower than the industry averages of 73.2% and 11.9% respectively, indicating strong institutional interest in the company, which could posit that it is on a path for long-term growth.

Summary

Solaris Energy Infrastructure has shown superiority in several financial metrics when compared to its competitors, outperforming in 8 out of 15 analysis factors.

About Solaris Energy Infrastructure

Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas. The company specializes in designing and manufacturing equipment for oil and natural gas operators in the United States, providing services such as mobile proppant and fluid management systems, along with logistics and inventory management tools for the energy sector.

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