Solo Brands (SBDS) AI Stock Analysis

• Market Cap: $47.32M
• Dividend Yield: N/A
• Average Volume (3M): 18.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.16
• Revenue Growth: -17.33%
• EPS Growth: -3.39%
• Country: US
• Employees: 526
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.02
• Shares Outstanding: 1,647,346
• 10 Day Avg. Volume: 26,238
• 30 Day Avg. Volume: 18,147
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 6.49
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: -1.84
• 1Y Price Target: $11.50
• Price Target Upside: -39.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $11.50 ▼(-39.85% Downside)

Solo Brands' overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The technical analysis suggests mixed signals, while recent corporate events provide some positive sentiment. However, the company's high leverage and operational challenges remain significant risks.

Positive Factors

Debt Refinancing

Refinancing debt extends maturity, reducing short-term financial pressure and improving liquidity, aiding long-term stability.

Direct-to-Consumer Model

The direct-to-consumer model allows for higher margins and better customer insights, supporting sustainable revenue growth.

Brand Portfolio Strength

A diverse brand portfolio enhances market reach and customer loyalty, providing a competitive edge in the outdoor lifestyle sector.

Negative Factors

High Leverage

Significant leverage increases financial risk and limits flexibility, potentially impacting long-term financial health.

Declining Revenue Growth

Negative revenue growth indicates challenges in market demand or competitive positioning, affecting future profitability.

Operational Challenges

Persistent operational challenges hinder profitability, requiring strategic adjustments to improve efficiency and margins.

Solo Brands Business Overview & Revenue Model

Company Description

Solo Brands, Inc. operates a direct-to-consumer platform that offers outdoor and lifestyle branded products in the United States. The company provides camp stoves under the Solo Stove Lite brand name; fire pits under the Solo Stove brand name; kayaks under the Oru brand name; paddle boards under the ISLE brand name; and storage solutions for fire pits, firewood, and other accessories. It offers swim trunks, casual shorts, sport products, polos, shirts, and lounge products under the Chubbies brand name; consumables, such as color packs, starters, natural charcoal, fuel, pellets, and firewood products; and accessories under the Solo Stove, Oru, and ISLE brands. Solo Brands, Inc. was founded in 2011 and is headquartered in Grapevine, Texas.

How the Company Makes Money

Solo Brands generates revenue through multiple streams, primarily by selling its products directly to consumers via its e-commerce platform and retail partnerships. The company also benefits from wholesale agreements with retailers that distribute its products in physical stores. Key revenue sources include the sale of its flagship fire pits and outdoor cooking equipment, which contribute significantly to its earnings. Additionally, Solo Brands may engage in promotional partnerships and collaborations with outdoor lifestyle influencers and brands, enhancing its market reach and driving sales. The company's focus on direct-to-consumer sales allows for higher profit margins compared to traditional retail channels, contributing positively to its overall financial performance.

Solo Brands Financial Statement Overview

Summary

Solo Brands is facing financial challenges with declining revenue, negative profitability margins, and increased leverage. Significant cash flow difficulties exacerbate these issues, reflecting a need for strategic adjustments to improve financial health.

Income Statement

Solo Brands has experienced declining revenue and profitability. The TTM (Trailing-Twelve-Months) period showed a decrease in total revenue and negative EBIT and EBITDA margins, indicating operational difficulties. The net profit margin has also worsened due to increasing net losses. Overall, the company is facing challenges in maintaining profitability and revenue growth.

Balance Sheet

The company's balance sheet highlights increasing leverage with a rising debt-to-equity ratio. Stockholders' equity has decreased due to accumulating losses, impacting the equity ratio negatively. While total assets have increased, the company's financial stability is weakened by higher debt levels and lower equity.

Cash Flow

Cash flow analysis indicates negative free cash flow and operating cash flow for the TTM period, reflecting cash management challenges. The operating cash flow to net income ratio is unfavorable due to net losses, and free cash flow growth is negative, suggesting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	407.19M	454.55M	494.78M	517.63M	403.72M	133.43M
Gross Profit	226.29M	260.26M	302.15M	318.18M	258.91M	86.97M
EBITDA	-166.65M	-148.51M	-193.20M	55.55M	87.09M	-15.22M
Net Income	-132.50M	-113.36M	-111.35M	-4.95M	48.65M	-24.20M
Balance Sheet
Total Assets	459.70M	495.06M	659.32M	862.35M	837.74M	542.41M
Cash, Cash Equivalents and Short-Term Investments	18.12M	11.98M	19.84M	23.29M	25.10M	32.75M
Total Debt	264.75M	182.83M	182.48M	149.41M	128.15M	73.35M
Total Liabilities	303.84M	301.70M	287.06M	287.35M	263.57M	210.31M
Stockholders Equity	113.18M	133.71M	241.26M	363.43M	360.88M	332.10M
Cash Flow
Free Cash Flow	-66.59M	-4.00M	53.33M	23.15M	-20.89M	31.72M
Operating Cash Flow	-50.89M	10.52M	62.42M	32.40M	-10.25M	32.68M
Investing Cash Flow	-15.70M	-14.51M	-53.08M	-10.02M	-143.89M	-274.10M
Financing Cash Flow	64.73M	-3.66M	-12.87M	-23.54M	146.48M	281.07M

Solo Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBDS, the sentiment is Positive. The current price of 19.12 is above the 20-day moving average (MA) of 13.94, above the 50-day MA of 14.27, and below the 200-day MA of 19.63, indicating a neutral trend. The MACD of 1.74 indicates Negative momentum. The RSI at 70.16 is Negative, neither overbought nor oversold. The STOCH value of 81.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBDS.

Solo Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DKS	82 Outperform	19.90B	15.49	34.98%	2.13%	2.70%	4.58%
ASO	72 Outperform	3.19B	8.96	17.87%	1.05%	-2.20%	-17.95%
CHWY	68 Neutral	15.97B	108.61	38.76%	―	9.04%	-56.79%
SPWH	52 Neutral	118.37M	-3.14	-17.92%	―	-2.92%	-8.22%
SBDS	45 Neutral	$47.32M	―	-75.73%	―	-17.33%	-3.39%
BGFV	41 Neutral	31.40M	-0.33	-68.63%	―	-8.04%	-263.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Solo Brands Corporate Events

Solo Brands Resumes NYSE Trading After Suspension

In August 2025, Solo Brands will engage in meetings with investors and analysts, sharing presentation materials that are available on their Investor Relations website. The company has recently overcome significant challenges, including elevated cost structures and a temporary NYSE trading suspension, by achieving key milestones such as debt refinancing through June 2028 and reinstatement of their Class A common stock trading on the NYSE.