Latest news with #SolarisEnergyInfrastructure
Yahoo
3 days ago
- Business
- Yahoo
Can Mixed Fundamentals Have A Negative Impact on Solaris Energy Infrastructure, Inc. (NYSE:SEI) Current Share Price Momentum?
Solaris Energy Infrastructure (NYSE:SEI) has had a great run on the share market with its stock up by a significant 17% over the last month. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. Particularly, we will be paying attention to Solaris Energy Infrastructure's ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Solaris Energy Infrastructure is: 5.2% = US$35m ÷ US$668m (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.05 in profit. Check out our latest analysis for Solaris Energy Infrastructure So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. At first glance, Solaris Energy Infrastructure's ROE doesn't look very promising. Next, when compared to the average industry ROE of 13%, the company's ROE leaves us feeling even less enthusiastic. In spite of this, Solaris Energy Infrastructure was able to grow its net income considerably, at a rate of 42% in the last five years. Therefore, there could be other reasons behind this growth. For instance, the company has a low payout ratio or is being managed efficiently. We then compared Solaris Energy Infrastructure's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 58% in the same 5-year period, which is a bit concerning. Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Solaris Energy Infrastructure's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Solaris Energy Infrastructure's significant three-year median payout ratio of 73% (where it is retaining only 27% of its income) suggests that the company has been able to achieve a high growth in earnings despite returning most of its income to shareholders. Additionally, Solaris Energy Infrastructure has paid dividends over a period of six years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 13% over the next three years. As a result, the expected drop in Solaris Energy Infrastructure's payout ratio explains the anticipated rise in the company's future ROE to 23%, over the same period. In total, we're a bit ambivalent about Solaris Energy Infrastructure's performance. While the company has posted a decent earnings growth, We do feel that the earnings growth number could have been even higher, had the company been reinvesting more of its earnings at a higher rate of return. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Business Wire
24-05-2025
- Business
- Business Wire
SEI Deadline: Rosen Law Firm Urges Solaris Energy Infrastructure, Inc. (NYSE: SEI) Stockholders with Losses in Excess of $100K to Contact the Firm for Information About Their Rights
NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, reminds investors that a shareholder filed a class action on behalf of purchasers and acquirers of Solaris Energy Infrastructure, Inc. (NYSE: SEI) securities between July 9, 2024 and March 17, 2025. Solaris Energy provides equipment used in the completion of oil and natural gas wells. For more information, submit a form, email attorney Phillip Kim, or give us a call at 866-767-3653. The Allegations: Rosen Law Firm is Investigating the Allegations that Solaris Energy Infrastructure, Inc. (NYSE: SEI) Misled Investors Regarding its Business Operations. According to the lawsuit, throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that: (1) Mobile Energy Rentals LLC ('MER') had little to no corporate history in the mobile turbine leasing space; (2) MER did not have a diversified earnings stream; (3) MER's co-owner was a convicted felon associated with multiple allegations of turbine-related fraud; (4) as a result, Solaris overstated the commercial prospects posed by the MER acquisition; (5) Solaris inflated profitability metrics by failing to properly depreciate its turbines; and (6) as a result of the foregoing, defendants' positive statements about Solaris Energy's business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages. What Now: You may be eligible to participate in the class action against Solaris Energy Infrastructure, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by May 27, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here. All representation is on a contingency fee basis. Shareholders pay no fees or expenses. About Rosen Law Firm: Some law firms issuing releases about this matter do not actually litigate securities class actions. Rosen Law Firm does. Rosen Law Firm is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses, improving corporate governance structures, and holding company executives accountable for their wrongdoing. Since its inception, Rosen Law Firm has obtained over $1 billion for shareholders. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome.
Business Wire
16-05-2025
- Business
- Business Wire
Solaris Energy Infrastructure Announces Quarterly Cash Dividend
HOUSTON--(BUSINESS WIRE)--Solaris Energy Infrastructure, Inc. (NYSE:SEI) ('Solaris' or the 'Company') announced today that it that its Board of Directors has approved a second quarter 2025 dividend of $0.12 per share to be paid on June 13, 2025 to holders of record as of June 3, 2025. A distribution of $0.12 per unit has also been approved for holders of units in Solaris Energy Infrastructure, LLC, which is subject to the same payment and record dates. About Solaris Energy Infrastructure, Inc. Solaris Energy Infrastructure, Inc. (NYSE:SEI) provides mobile and scalable equipment-based solutions for use in distributed power generation as well as the management of raw materials used in the completion of oil and natural gas wells. Headquartered in Houston, Texas, Solaris serves multiple U.S. end markets, including energy, data centers, and other commercial and industrial sectors. For more details, visit Solaris Energy Infrastructure, Inc.
Yahoo
05-05-2025
- Business
- Yahoo
Solaris Energy Infrastructure's (NYSE:SEI) Earnings Quality Is Low
Solaris Energy Infrastructure, Inc.'s (NYSE:SEI) weak earnings were disregarded by the market. Despite the market responding positively, we think that there are several concerning factors that investors should be aware of. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. For the year to March 2025, Solaris Energy Infrastructure had an accrual ratio of 0.42. As a general rule, that bodes poorly for future profitability. To wit, the company did not generate one whit of free cashflow in that time. Even though it reported a profit of US$15.8m, a look at free cash flow indicates it actually burnt through US$261m in the last year. It's worth noting that Solaris Energy Infrastructure generated positive FCF of US$41m a year ago, so at least they've done it in the past. Unfortunately for shareholders, the company has also been issuing new shares, diluting their share of future earnings. One positive for Solaris Energy Infrastructure shareholders is that it's accrual ratio was significantly better last year, providing reason to believe that it may return to stronger cash conversion in the future. As a result, some shareholders may be looking for stronger cash conversion in the current year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. As it happens, Solaris Energy Infrastructure issued 53% more new shares over the last year. That means its earnings are split among a greater number of shares. Per share metrics like EPS help us understand how much actual shareholders are benefitting from the company's profits, while the net income level gives us a better view of the company's absolute size. Check out Solaris Energy Infrastructure's historical EPS growth by clicking on this link. As you can see above, Solaris Energy Infrastructure has been growing its net income over the last few years, with an annualized gain of 359% over three years. Net profit actually dropped by 21% in the last year. But the EPS result was even worse, with the company recording a decline of 25%. Therefore, one can observe that the dilution is having a fairly profound effect on shareholder returns. In the long term, if Solaris Energy Infrastructure's earnings per share can increase, then the share price should too. However, if its profit increases while its earnings per share stay flat (or even fall) then shareholders might not see much benefit. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. As it turns out, Solaris Energy Infrastructure couldn't match its profit with cashflow and its dilution means that shareholders own less of the company than the did before (unless they bought more shares). On reflection, the above-mentioned factors give us the strong impression that Solaris Energy Infrastructure'sunderlying earnings power is not as good as it might seem, based on the statutory profit numbers. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Our analysis shows 6 warning signs for Solaris Energy Infrastructure (4 are significant!) and we strongly recommend you look at these before investing. In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Why Solaris Energy Infrastructure, Inc. (SEI) Stock is Gaining This Week
We recently compiled a list of the Energy Stocks that are Gaining This Week. In this article, we are going to take a look at where Solaris Energy Infrastructure, Inc. (NYSE:SEI) stands against the other energy stocks. The ongoing artificial intelligence boom is set to transform the global energy sector. According to a recent report by the International Energy Agency, electricity demand from data centers worldwide is set to more than double by 2030 to around 945 terawatt-hours (TWh), slightly more than the entire electricity consumption of Japan today. Moreover, while the American big-tech has kept its focus on renewable energy over the last decade to reduce its carbon footprint, the sector is now also opening up to fossil fuels as a viable option to power its data centers. Natural gas has emerged as a forerunner to power the AI boom, since it is relatively clean, reliable, and abundant. However, gas prices aren't what they used to be, having risen by over 190% since March 2024. Another viable option is nuclear energy, which has gained worldwide attention recently following the CERAWeek conference in March, when several tech giants signed a pledge to support the goal of at least tripling the world's nuclear energy capacity by 2050. There have also been fears recently that the power demand required by the ballooning AI industry may have been overestimated, which led to several energy stocks posting significant declines not so long ago. However, the recently reported better-than-expected results from the cloud and AI businesses of some major American tech companies have somewhat eased these concerns. An oil rig worker in overalls, examining a drill bit at the San Juan Basin. To collect data for this article, we have referred to several stock screeners to find energy stocks that have surged the most between April 23 and April 30, 2025. The following are the Energy Stocks that Gained the Most This Week. The stocks are ranked according to their share price surge during this period. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). Share Price Gains Between Apr. 23 – Apr. 30: 9.31% Next on our list of Energy Stocks that Gained the Most This Week is Solaris Energy Infrastructure, Inc. (NYSE:SEI), a company that designs and manufactures specialized equipment for oil and natural gas operators in the United States. Solaris Energy Infrastructure, Inc. (NYSE:SEI) announced better-than-expected results for its Q1 2025 this week, reporting an adjusted EPS of $0.2 against estimates of $0.11. The company's revenue also grew by a massive 86% YoY to $126.33 million and beat expectations by just over $10 million. SEI also reported a net income of $13 million for the quarter, well above the $7.3 million posted in Q1 2024. The company has also highlighted a significant shift in business focus from traditional oilfield services to energy infrastructure, while outlining plans to grow its power generation fleet to 1.7 GW by the first half of 2027. Overall, SEI ranks 5th on our list of the energy stocks that gained the most this week. While we acknowledge the potential of SEI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SEI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
