Solaris Oilfield Infrastructure, Inc. (SOI) designs, manufactures and sells mobile equipment to unload, store, and deliver proppant, water, and chemicals at oil and natural gas well sites. It is involved in the transloading and storing proppant or railcars at its trans-loading facility. The company also develops Railtronix, an inventory management software. In addition, it provides last-mile logistics management services; AutoBlend, an integrated electric blender; top-fill equipment to enable quick unloading from bottom drop trucks; fluid management systems; and proprietary Solaris Lens software.
In the last quarter, SOI’s EPS beat analyst estimates by 86.9%. The company’s revenue came in $4.64 million higher than the analyst estimates of $52.28 million. Also, analysts expect its EPS and revenue to increase significantly in the upcoming months.
SOI’s four-year average dividend yield is 3.6%, and its current dividend translates to a 3% yield. It has declared a $0.105 per share quarterly dividend, which will be paid on June 17, 2022. SOI’s stock has gained 110.6% in price year-to-date and 32.6% over the past year to close the last trading session at $13.80.
Here's what could influence SOI’s performance in the upcoming months:
Robust Financials
SOI’s revenue increased 98.5% year-over-year to $56.91 million in the first quarter ended March 31, 2022. The company’s net income increased 397.2% year-over-year to $5.72 million. Also, its adjusted EBITDA increased 157.2% year-over-year to $15.74 million. In addition, its EPS increased 375% year-over-year to $0.11.
Favorable Analyst Estimates
Analysts expect SOI’s revenue for fiscal 2022 and 2023 to increase 61.2% and 20.7% year-over-year to $256.66 million and $309.77 million, respectively. Also, its EPS for fiscal 2022 and 2023 is expected to increase 1,050% and 82.5% year-over-year to $0.57 and $1.04, respectively. It surpassed Street EPS estimates in two of the trailing four quarters.
Price Target Indicates Potential Upside
Out of the three Wall Street analysts rating SOI, one rated it Buy. The 12-month median price target of $14.33 indicates a 3.8% potential upside. The price targets range from a low of $14 to a high of $15.
POWR Ratings Show Promise
SOI has an overall B rating, equating to a Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. SOI has an A grade for Momentum, which is consistent with the fact that it is currently trading above its 50-day and 200-day moving averages of $12.11 and $9.09, respectively.
It has a B grade for Growth and Sentiment, in sync with its improving financials and analysts’ expectations of a solid increase in its EPS in the quarter ending September 30, 2022.
SOI is ranked #11 out of 47 stocks in the Energy - Services industry. Click here to access SOI’s value, Stability, and quality ratings.
Bottom Line
SOI’s robust revenue and earnings growth in the last reported quarter has boosted investor confidence regarding its future performance. Analysts expect its revenue and earnings to keep increasing in the upcoming quarters. So, we think adding this stock to your portfolio could be wise.
How Does Solaris Oilfield Infrastructure, Inc.(SOI) Stack Up Against its Peers?
SOI has an overall POWR Rating of B, equating to a Buy rating. Check out these other B-rated stocks within the Energy - Services industry: North American Construction Group Ltd. (NOA), NCS Multistage Holdings, Inc. (NCSM), and ChampionX Corporation (CHX).
SOI shares were trading at $12.94 per share on Monday afternoon, down $0.86 (-6.23%). Year-to-date, SOI has gained 101.15%, versus a -19.80% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.
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