Added to YB: 2025-09-29
Pitch date: 2025-09-25
SEI [neutral]
Solaris Energy Infrastructure, Inc.
+13.77%
current return
Author Info
MVC Investing is a long-term investor. BSc in Economics, MSc in Finance. Equity Analyst with a focus on Fundamental Analysis and Valuation. Sign up for the newsletter.
Company Info
Solaris Energy Infrastructure, Inc. provides mobile and scalable equipment-based solutions for use in distributed power generation and management of raw materials used in the completion of oil and natural gas wells in the United States.
Market Cap
$2.2B
Pitch Price
$38.29
Price Target
N/A
Dividend
1.06%
EV/EBITDA
14.87
P/E
49.92
EV/Sales
5.49
Sector
Energy Equipment and Services
Category
value
Solaris Energy Infrastructure (SEI): Investment Thesis Explained
SEI (pass): Small-cap energy infra play riding AI data center boom. Acquired MER for $200M, transforming from cyclical oilfield logistics to distributed power provider. Power Solutions segment exploded: Q2 2025 revenue $75.6M, 60.4% EBITDA margin. Trading 4.5x 2027E EBITDA vs peers at 20x+. Bull case: xAI partnership, $600M EBITDA target by 2027, undervalued vs AI energy plays. Bear case: 96% revenue from single customer xAI, management credibility issues, unsustainable 60%+ margins, accounting concerns. Pass due to concentration risk & trust issues despite compelling valuation.
Read full article (11 min)