Solo Brands, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hudson Technologies, Inc.

DXP Enterprises, Inc.

Cricut, Inc.

AerSale Corp.

Distribution Solutions Group, Inc.

Titan Machinery, Inc.

BlueLinx Holdings, Inc.

Alta Equipment Group, Inc.

Solo Brands, Inc.

Lavoro Ltd.

Li-Cycle Holdings Corp.

Why is Solo Brands, Inc. ?

Poor Management Efficiency with a low ROCE of 5.15%

The company has been able to generate a Return on Capital Employed (avg) of 5.15% signifying low profitability per unit of total capital (equity and debt)

The company has declared negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD -50.89 MM
NET SALES(Q) At USD 92.26 MM has Fallen at -29.87%
PRE-TAX PROFIT(Q) At USD -9.54 MM has Fallen at -610.35%

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -75.77%, its profits have fallen by -200%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 13.01% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -75.77% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Solo Brands, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Solo Brands, Inc.

-75.77%

0.15

3345.67%

S&P 500

13.01%

0.64

20.18%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.55%

EBIT Growth (5y)

-226.72%

EBIT to Interest (avg)

2.17

Debt to EBITDA (avg)

2.49

Net Debt to Equity (avg)

1.89

Sales to Capital Employed (avg)

1.16

Tax Ratio

1.44%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

5.15%

ROE (avg)

9.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.08

EV to EBIT

-6.80

EV to EBITDA

-29.29

EV to Capital Employed

0.68

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

-10.01%

ROE (Latest)

-39.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.24 times

OPERATING PROFIT MARGIN(Q)

Highest at 6.91 %

-35What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -50.89 MM

NET SALES(Q)

At USD 92.26 MM has Fallen at -29.87%

PRE-TAX PROFIT(Q)

At USD -9.54 MM has Fallen at -610.35%

ROCE(HY)

Lowest at -75.73%

DEBT-EQUITY RATIO (HY)

Highest at 217.75 %

RAW MATERIAL COST(Y)

Grown by 6.2% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.21 times

INTEREST(Q)

Highest at USD 5.99 MM

NET PROFIT(Q)

Fallen at -25.91%

Here's what is working for Solo Brands, Inc.

Operating Profit Margin

Highest at 6.91 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 2.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Solo Brands, Inc.

Net Sales

At USD 92.26 MM has Fallen at -29.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD -9.54 MM has Fallen at -610.35%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Cash Flow

Lowest at USD -50.89 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 217.75 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 5.99 MM

in the last five periods and Increased by 7.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

Fallen at -25.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debtors Turnover Ratio

Lowest at 9.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 6.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales