Fundamentals:
Solaris Energy Infrastructure, Inc. exhibits a mixed profile in terms of fundamentals. The company has a trailing P/E ratio of 44.83, which suggests that it may be valued at a premium compared to the broader market, particularly in the energy sector. The profit margin stands at 5.05%, while the operating margin is significantly higher at 24.7%, indicating efficient management of operational costs. Revenue for the trailing twelve months is reported at approximately $447 million, with a gross profit of around $208 million. Year-over-year changes show a 50% increase in quarterly earnings and a 2.1% increase in quarterly revenue, reflecting positive growth trends.
Valuation metrics such as the price-to-sales ratio (P/S) of 4.00 and price-to-book ratio (P/B) of 2.96 further indicate a relatively high valuation context. The EV/EBITDA ratio of 10.8 suggests that the company may be trading at a premium compared to peers in the oil and gas equipment and services industry. The return on equity (ROE) is 8.91%, which is a reasonable figure, but may not be particularly compelling in a high-growth sector.
Ownership mix shows that insiders hold approximately 5.71% of the company, while institutional ownership is notably high at 112.72%, indicating strong institutional interest and confidence in the company's prospects.
Technicals:
From a technical standpoint, Solaris Energy is currently experiencing a significant upward movement, with the last close at $29.35, reflecting a daily change of 17.86% and a weekly change of 8.86%. The stock is near its 52-week high, which may indicate bullish sentiment; however, it is trading below its 50-day moving average (
SMA) of 29.86, while above the 200-day
SMA of 26.79. This divergence suggests a potential short-term bearish momentum, as indicated by the momentum signal being classified as bearish. The average price over the last 20 days is not provided, limiting the analysis of volume trends and volatility.
The average price over the last 20 days and volume ratio are not available, which restricts a deeper analysis of trading volume and market activity. The recent price action, combined with the bearish momentum signal, suggests caution in the short term.
Overall:
Considering the mixed fundamentals and the current technical posture, it may be prudent for investors to adopt a wait-and-see approach. The high valuation metrics and bearish momentum signal indicate potential risks, despite the positive growth in earnings and revenue. If you already own shares, holding may be advisable until clearer signals emerge regarding the stock's direction. For new investors, it may be wise to wait for a more favorable entry point or clearer bullish indicators before committing capital.