Solaris Energy Infrastructure (SEI) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: 2.13%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 44.2
• Beta (1Y): 1.87
• Revenue Growth: 33.59%
• EPS Growth: -27.16%
• Country: US
• Employees: 364
• Sector: Energy
• Sector Strength: 40
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.14
• Shares Outstanding: 40,403,557
• 10 Day Avg. Volume: 1,262,078
• 30 Day Avg. Volume: 1,509,126
• PEG Ratio: N/A
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.60
• Price Target Upside: 102.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: ―

Solaris Energy Infrastructure scores 68, driven by strong revenue growth and operational efficiency. Positive earnings call guidance and sentiment further support the score. However, high valuation, mixed technical indicators, and cash flow challenges present risks that moderate the overall outlook.

Positive Factors

AI and Technology

SEI is now part of the AI growth wave with 60% or 400MW of its planned 680MW capacity supporting the power needs for xAI's generative AI data center.

Expansion and Growth

SEI now owns and operates a fleet of mobile NG-fired turbines and is expanding rapidly to meet load growth.

Joint Venture Benefits

The JV will own ~500 MW of capacity, leasing it to the data center partner, which lowers SEI's CAPEX load and allows the company to grow faster without raising high coupon debt or equity.

Negative Factors

Financial Commitment

SEI is in the midst of a transformation, creating a new stool in Power Services after acquiring Mobile Energy Rentals in July 2024.

Solaris Energy Infrastructure Business Overview & Revenue Model

Company Description

Solaris Energy Infrastructure (SEI) is a leading company in the renewable energy sector, specializing in the development, construction, and management of solar energy projects. The company focuses on providing sustainable energy solutions by harnessing solar power to generate clean electricity for residential, commercial, and industrial clients. SEI is committed to advancing the transition to renewable energy sources and reducing carbon emissions through its innovative solar technologies and extensive project portfolio.

How the Company Makes Money

Solaris Energy Infrastructure (SEI) makes money primarily through the sale of solar-generated electricity and the development of solar power projects. The company's key revenue streams include power purchase agreements (PPAs) with utility companies, where SEI sells electricity generated from its solar farms at agreed-upon rates. Additionally, SEI generates income by leasing or selling solar energy systems to residential and commercial clients. The company may also receive incentives, tax credits, and subsidies from government programs aimed at promoting renewable energy adoption. Significant partnerships with technology providers, financial institutions, and construction firms enhance SEI's ability to efficiently deploy and manage solar projects, contributing to its financial success.

Solaris Energy Infrastructure Financial Statement Overview

Summary

Solaris Energy Infrastructure demonstrates strong revenue growth and operational efficiency, with a 18.7% revenue increase and improved margins. However, cash flow management requires attention due to negative free cash flow, and the balance sheet's debt level needs monitoring.

Income Statement

Solaris Energy Infrastructure has demonstrated strong financial performance with consistent revenue growth, evidenced by a 18.7% increase from the previous year to the TTM period. The gross profit margin for TTM improved to 27.3%, indicating effective cost management. The company also maintained a healthy EBITDA margin of 31.8% and an EBIT margin of 17.5%, reflecting solid operational efficiency. However, the net profit margin for TTM is relatively modest at 4.5%, suggesting room for improvement in profitability.

Balance Sheet

The balance sheet reveals a moderate financial position with a debt-to-equity ratio of 0.91, indicating a balanced leverage level. The equity ratio stands at 32.0%, showing a stable capital structure. Return on equity (ROE) for TTM is at 4.6%, which suggests moderate returns on shareholders' investment. Despite the overall healthy balance sheet, the increase in total debt warrants cautious monitoring of future leverage levels.

Cash Flow

Solaris Energy Infrastructure's cash flow performance shows areas of concern, with a significant decline in free cash flow due to high capital expenditures, resulting in negative free cash flow. The operating cash flow to net income ratio of 4.12 indicates efficient cash generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting potential cash flow challenges that need addressing.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
371.53M	313.09M	292.95M	320.00M	159.19M	102.98M
	Gross Profit
101.44M	80.95M	78.92M	69.80M	16.52M	10.19M
	EBIT
64.92M	52.82M	49.90M	41.80M	-387.00K	-59.90M
	EBITDA
118.18M	95.95M	86.09M	72.24M	26.82M	-32.88M
	Net Income Common Stockholders
16.55M	15.81M	24.34M	21.16M	-868.00K	-29.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.72M	114.25M	5.83M	8.84M	36.50M	60.37M
	Total Assets
1.13B	1.12B	468.30M	462.58M	406.22M	411.90M
	Total Debt
328.09M	328.88M	47.79M	20.48M	7.52M	8.20M
	Net Debt
311.37M	214.62M	41.96M	11.65M	-28.98M	-52.17M
	Total Liabilities
461.72M	456.15M	152.72M	145.45M	108.35M	96.42M
	Stockholders Equity
361.29M	355.62M	205.98M	215.72M	203.15M	201.25M
Cash Flow		Free Cash Flow
-261.18M	-129.05M	23.87M	-13.41M	-3.17M	39.19M
	Operating Cash Flow
68.21M	59.37M	88.26M	68.00M	16.47M	43.85M
	Investing Cash Flow
-446.01M	-305.03M	-62.00M	-79.54M	-19.52M	-3.77M
	Financing Cash Flow
391.09M	399.70M	-29.26M	-16.12M	-20.82M	-46.59M

Solaris Energy Infrastructure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEI, the sentiment is Negative. The current price of 22.5 is above the 20-day moving average (MA) of 22.01, above the 50-day MA of 21.18, and above the 200-day MA of 20.66, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 34.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEI.

Solaris Energy Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RES	76 Outperform	$1.05B	13.49	7.06%	3.43%	-9.78%	-49.45%
INVX	75 Outperform	$1.02B	5.41	13.87%	―	72.10%	―
WTTR	69 Neutral	$1.01B	24.35	4.51%	3.10%	-4.91%	-46.51%
SEI	68 Neutral	$1.47B	44.16	5.52%	2.13%	33.59%	-27.16%
XPRO	68 Neutral	$947.36M	13.28	4.91%	―	10.48%	―
HLX	66 Neutral	$980.40M	11.71	5.64%	―	0.34%	―
Sector *	57 Neutral	$7.14B	3.33	-3.45%	5.75%	0.66%	-50.76%

Solaris Energy Infrastructure Corporate Events

Solaris Energy Elects New Directors at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 15, Solaris Energy Infrastructure announced the election of three Class II Directors, the ratification of BDO USA, P.C. as its independent public accounting firm for 2025, and an advisory vote approving the compensation of its Named Executive Officers. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (SEI) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Solaris Energy Infrastructure stock, see the SEI Stock Forecast page.

Solaris Energy Infrastructure Completes Major Acquisition

On September 11, 2024, Solaris Energy Infrastructure completed the acquisition of Mobile Energy Rental LLC, a move that reflects in their financial statements for the year ended December 31, 2024. The acquisition, valued at $60 million in cash and additional equity considerations, is expected to impact Solaris’s financial operations significantly, with adjustments made for refinancing existing debt and funding the transaction. The pro forma financial statements illustrate the anticipated effects of the acquisition, although these are preliminary and subject to change.