Stabilis Solutions (SLNG) AI Stock Analysis

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Stabilis Solutions

(NASDAQ:SLNG)

72Outperform

Stabilis Solutions is positioned well with strong financials and strategic growth in high-potential sectors like aerospace and marine. However, flat revenue growth and technical indicators showing bearish momentum warrant cautious optimism.

Positive Factors

Financial performance

SLNG reported 4Q24 results with EBITDA well above forecast due to significantly reduced selling, general, and administrative expenses.

Growth opportunity

Stabilis Solutions, Inc. is expected to benefit from the increasing number of containerships using LNG as fuel, with a significant opportunity for growth.

Market demand

Aerospace and shipping industries contributed to 50% of SLNG's revenue in 4Q24, showing robust market demand in these sectors.

Negative Factors

Revenue performance

SLNG's 4Q24 revenue fell short of forecast due to lower natural gas prices, impacting gross profit modestly.

Stabilis Solutions (SLNG) vs. S&P 500 (SPY)

Market Cap

$74.57M

Dividend YieldN/A

Average Volume (3M)16.93K

Price to Earnings (P/E)16.2

Beta (1Y)0.50

Revenue Growth0.24%

EPS Growth3707.69%

CountryUS

Employees104

SectorEnergy

Sector Strength44

IndustryOil & Gas Integrated

Share Statistics

EPS (TTM)0.25

Shares Outstanding18,596,300

10 Day Avg. Volume7,531

30 Day Avg. Volume16,928

Financial Highlights & Ratios

PEG Ratio0.00437

Price to Book (P/B)N/A

Price to Sales (P/S)1.32

Price to Cash Flow (P/CF)11.10

P/FCF Ratio10.70

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$12.00

Price Target Upside199.25% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Stabilis Solutions Business Overview & Revenue Model

Company DescriptionStabilis Solutions, Inc., together with its subsidiaries, provides small-scale liquefied natural gas (LNG) production, distribution, and fueling services to various end markets in North America. It operates in two segments, LNG and Power Delivery. The company supplies LNG to the industrial, midstream, and oilfield sectors; and offers fuel solutions to industrial users of propane, diesel, and other crude-based fuel products, as well as provides cryogenic equipment rental and field services. It also provides electrical and instrumentation construction, and installation services; and builds electrical systems. The company serves aerospace, industrial, utilities and pipelines, mining, energy, commercial, and transportation markets. Stabilis Solutions, Inc. was founded in 2013 and is headquartered in Houston, Texas.

How the Company Makes MoneyStabilis Solutions generates revenue primarily through the sale of liquefied natural gas (LNG) to industrial and commercial customers. The company operates LNG production facilities and provides transportation and distribution services to ensure the efficient delivery of LNG to its clients. Additionally, Stabilis offers equipment and services for LNG applications, including mobile fueling solutions and turnkey fuel supply solutions. The company may also engage in strategic partnerships and collaborations that enhance its service offerings and expand its market reach, contributing to its overall earnings.

Stabilis Solutions Financial Statement Overview

Summary

Stabilis Solutions demonstrates strong financial improvement with robust cash flow growth and enhanced profitability. A positive trajectory in profitability is highlighted by improved margins, although revenue growth remains flat.

Income Statement

Positive

Stabilis Solutions has demonstrated a significant improvement in profitability, evidenced by a strong Gross Profit Margin of 28.94% and a Net Profit Margin of 6.28% for 2024. The company has turned its EBIT from negative to positive, showing an EBIT margin of 2.13%. Revenue growth, however, remains flat with a slight increase of 0.25% from 2023 to 2024. Overall, the company is on a positive trajectory in terms of profitability.

Balance Sheet

Positive

The company's balance sheet reflects a healthy financial position with a Debt-to-Equity ratio of 0.14 and a strong Equity Ratio of 78.31%. Return on Equity stands at a solid 6.86%, indicating efficient use of equity to generate profits. The low leverage and high equity provide financial stability, although the equity base has seen modest growth.

Cash Flow

Very Positive

Stabilis Solutions has achieved robust cash flow performance, with a Free Cash Flow growth rate of 486.16% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 2.98, indicating strong cash generation capabilities. Free Cash Flow is significantly positive, supporting operational flexibility and potential future investments.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
73.29M	73.11M	98.82M	77.17M	41.55M
	Gross Profit
21.22M	10.32M	12.46M	8.63M	2.50M
	EBIT
3.39M	-812.00K	687.00K	-8.70M	-8.27M
	EBITDA
12.23M	8.58M	8.51M	2.65M	3.46M
	Net Income Common Stockholders
4.60M	125.00K	-1.19M	-7.80M	-6.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.99M	5.37M	11.45M	2.06M	1.81M
	Total Assets
85.58M	81.30M	96.58M	87.34M	80.31M
	Total Debt
9.34M	9.61M	12.25M	13.04M	9.37M
	Net Debt
356.00K	4.24M	798.00K	10.98M	7.56M
	Total Liabilities
18.58M	19.49M	36.71M	26.28M	18.28M
	Stockholders Equity
67.01M	61.81M	59.87M	61.06M	62.03M
Cash Flow		Free Cash Flow
4.55M	-3.54M	10.77M	-2.91M	568.00K
	Operating Cash Flow
13.69M	6.71M	14.70M	4.91M	1.34M
	Investing Cash Flow
-8.12M	-8.91M	-1.92M	-7.52M	-256.00K
	Financing Cash Flow
-1.91M	-3.88M	-2.25M	3.01M	-3.20M

Stabilis Solutions Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.01

Price Trends

50DMA

5.64

Negative

100DMA

5.73

Negative

200DMA

4.99

Negative

Market Momentum

MACD

-0.29

Negative

RSI

39.00

Neutral

STOCH

33.04

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLNG, the sentiment is Negative. The current price of 4.01 is below the 20-day moving average (MA) of 4.73, below the 50-day MA of 5.64, and below the 200-day MA of 4.99, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 39.00 is Neutral, neither overbought nor oversold. The STOCH value of 33.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLNG.

Stabilis Solutions Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNG	75 Outperform	$49.09B	15.52	60.45%	0.85%	-22.22%	-64.97%
SLNG	72 Outperform	$74.57M	16.21	7.14%	―	0.24%	3707.69%
CQP	68 Neutral	$28.14B	13.59	117.38%	5.59%	-9.93%	-50.50%
FLNG	65 Neutral	$1.19B	10.32	14.23%	13.35%	-3.95%	-2.25%
GLNG	64 Neutral	$3.90B	76.39	2.43%	2.68%	-12.75%	―
Sector *	57 Neutral	$7.57B	4.34	-4.83%	6.50%	-0.19%	-64.60%

* Energy Sector Average

Performance Comparison

SLNG

Stabilis Solutions

4.01

>-0.01

-0.25%

LNG

Cheniere Energy

220.31

67.41

44.09%

CQP

Cheniere Energy Partners

58.13

14.76

34.03%

GLNG

Golar LNG

37.27

13.20

54.84%

NextDecade

6.84

0.62

9.97%

FLNG

FLEX LNG

22.47

0.04

0.18%

Stabilis Solutions Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: -42.05% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive outlook for Stabilis Solutions, Inc., with strong performance in the aerospace and marine segments, record adjusted EBITDA, and substantial cash generation. However, the decline in oil and gas customer activity and flat overall revenue growth present some challenges.

Highlights

Strong Growth in Aerospace and Marine Segments

Aerospace revenues increased by 35%, and marine bunkering revenues grew over 500% in the fourth quarter compared to the previous year.

Record Adjusted EBITDA and Margin

Adjusted EBITDA for the fourth quarter was a record $4 million, with a margin of 23.2%, up from 16% in the prior year period.

Increased Cash Generation

The company generated $13.7 million of cash from operations during 2024, representing a conversion of over 100% of their EBITDA.

Significant Growth Investments

Over $7 million of the $9.2 million in full-year capital expenditures were directed towards growth investments, particularly in infrastructure along the U.S. Gulf Coast.

Lowlights

Decline in Oil and Gas Customer Activity

Revenue during the fourth quarter decreased by 4% compared to the fourth quarter of 2023, primarily due to lower oil and gas customer activity.

Flat Overall Revenue Growth for the Year

Full year revenues were $73.3 million, marking a modest increase of 0.2% compared to 2023, largely offset by lower natural gas commodity prices.

Company Guidance

During the Stabilis Solutions, Inc. fourth quarter and full year 2024 earnings call, several key performance metrics and strategic priorities were discussed. Fourth quarter revenue decreased 4% compared to the same period in 2023, primarily due to lower oil and gas customer activity, though this was partly offset by a 35% increase in aerospace revenues, a 23% rise in power generation revenues, and over 500% growth in marine bunkering revenues. Approximately 49% of revenue during this period came from aerospace and marine customers, up from 14% the previous year. Net income for the fourth quarter was $2.1 million, or $0.11 per diluted share, compared to $1.4 million, or $0.08 per diluted share, in the fourth quarter of 2023. Adjusted EBITDA reached $4 million, a record for the quarter, with a margin of 23.2%, up from 16% in the prior year. For the full year, revenues were $73.3 million, a 0.2% increase from 2023, with adjusted EBITDA of $11.8 million, up from $6.8 million the previous year. The company generated $13.7 million in cash from operations, representing a conversion of over 100% of EBITDA. Capital expenditures for the year were $9.2 million, with more than $7 million allocated to growth investments, particularly along the U.S. Gulf Coast. The company's liquidity position by year-end included $9 million in cash and equivalents and $4.3 million available under credit facilities, with a net debt to trailing twelve-month adjusted EBITDA of just 0.03 times.

Stabilis Solutions Corporate Events

Business Operations and StrategyFinancial Disclosures

Stabilis Solutions Reports Strong 2024 Financial Results

Positive

Feb 26, 2025

Stabilis Solutions announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a net income of $4.6 million for the year and an adjusted EBITDA of $11.8 million, with a significant focus on asset optimization and system efficiency. Stabilis has expanded its small-scale LNG solutions platform, directing over 80% of its capital expenditures towards growth investments to enhance manufacturing and logistics capabilities. The company’s strategic focus on the marine and aerospace markets has resulted in a revenue mix increase in these high-growth sectors from 14% to nearly 50% by the fourth quarter of 2024. Stabilis remains well-capitalized, with $13.3 million in cash and availability under credit agreements, positioning itself for continued growth in 2025.

Executive/Board ChangesBusiness Operations and Strategy

Stabilis Solutions Announces Leadership Change and Strategic Focus

Neutral

Feb 3, 2025

Stabilis Solutions announced the appointment of J. Casey Crenshaw as Executive Chairman and interim CEO, effective January 31, 2025, following the mutual agreement for Westervelt T. Ballard, Jr. to step down from his positions. Mr. Ballard will remain as a consultant throughout 2025 to ensure a smooth transition. The company is set to continue its growth in the small-scale LNG market, with Mr. Crenshaw playing a pivotal role in the strategic development and search for a permanent CEO.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.