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Solaris Oilfield Infrastructure, Inc. (SOI)

Company Dividend Discount ModelIndustry: Oil & Gas Equipment & ServicesSector: Energy

Valuation Snapshot

Stable Growth$22.63 - $32.57$27.48
Multi-Stage$36.49 - $40.09$38.26
Blended Fair Value$32.87
Current Price$13.43
Upside144.74%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-5.39%0.00%0.400.380.380.370.520.530.130.710.000.00
YoY Growth--3.75%1.94%1.80%-29.29%-0.44%308.66%-81.75%0.00%0.00%0.00%
Dividend Yield--2.97%4.41%4.42%3.28%4.27%10.02%0.77%4.26%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)117.26
(-) Cash Dividends Paid (M)30.07
(=) Cash Retained (M)87.19
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)23.4514.668.79
Cash Retained (M)87.1987.1987.19
(-) Cash Required (M)-23.45-14.66-8.79
(=) Excess Retained (M)63.7472.5378.40
(/) Shares Outstanding (M)36.6036.6036.60
(=) Excess Retained per Share1.741.982.14
LTM Dividend per Share0.820.820.82
(+) Excess Retained per Share1.741.982.14
(=) Adjusted Dividend2.562.802.96
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$22.63$27.48$32.57
Upside / Downside68.50%104.61%142.51%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)117.26116.09114.92113.78112.64111.51114.86
Payout Ratio25.64%38.51%51.39%64.26%77.13%90.00%92.50%
Projected Dividends (M)30.0744.7159.0573.1186.88100.36106.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)40.5740.9841.39
Year 2 PV (M)48.6249.6250.62
Year 3 PV (M)54.6156.3058.02
Year 4 PV (M)58.8861.3263.84
Year 5 PV (M)61.7264.9368.28
PV of Terminal Value (M)1,071.471,127.271,185.36
Equity Value (M)1,335.871,400.421,467.52
Shares Outstanding (M)36.6036.6036.60
Fair Value$36.49$38.26$40.09
Upside / Downside171.74%184.87%198.52%

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