Solaris Oilfield Infrastructure (SOI) Valuation Update - Jan 30
Posted: Tue Jan 30, 2024 2:49 pm
SOI is in our Small-Cap Growth Portfolio, but it is really a mature oilfield services company that has gained a lot of market share. It is now a "Value Stock" that trades at just over 2.5X operating cash flow per share.
At the time of this post, it was trading at $7.79. Dividends are $0.12/quarter and I expect them to increase dividends this year and more in 2025. Current dividend yield is 6.16%.
My current valuation is $14.00. TipRanks' price target is $9.75.
In the Company's early growth phase SOI traded as high as $23/share in early 2018. Today it is in MUCH BETTER financial shape. Not much debt and more than enough free cash flow to raise dividends and keep paying down debt. It also has a stock buyback underway that should have a steady impact on per share value.
Maintenance CapEx is very low.
I should probably move it to our High Yield Income Portfolio.
At the time of this post, it was trading at $7.79. Dividends are $0.12/quarter and I expect them to increase dividends this year and more in 2025. Current dividend yield is 6.16%.
My current valuation is $14.00. TipRanks' price target is $9.75.
In the Company's early growth phase SOI traded as high as $23/share in early 2018. Today it is in MUCH BETTER financial shape. Not much debt and more than enough free cash flow to raise dividends and keep paying down debt. It also has a stock buyback underway that should have a steady impact on per share value.
Maintenance CapEx is very low.
I should probably move it to our High Yield Income Portfolio.