Soluna Holdings, Inc (SLNH) Stock Analysis and Metrics

Sector: Financial Services Industry: Capital Markets CIK: 0000064463

Market Cap 13.27 Mn

P/B 0.92

P/E -0.17

P/S 0.46

ROIC (Qtr) -261.00

Div Yield % 0.00

Rev 1y % (Qtr) 11.83

Total Debt (Qtr) 26.93 Mn

Debt/Equity (Qtr) 1.86

About

Soluna Holdings, Inc., often recognized by its ticker symbol SLNH, operates in the digital infrastructure industry, specializing in transforming surplus renewable energy into computing resources. The company's unique approach involves the creation of modular data centers that can co-locate with wind, solar, or hydroelectric power plants. These data centers support compute-intensive applications, such as Bitcoin Mining, Generative AI, and Scientific Computing. Soluna's mission is to elevate renewable energy to a global superpower status using computing...

Soluna Holdings, Inc., often recognized by its ticker symbol SLNH, operates in the digital infrastructure industry, specializing in transforming surplus renewable energy into computing resources. The company's unique approach involves the creation of modular data centers that can co-locate with wind, solar, or hydroelectric power plants. These data centers support compute-intensive applications, such as Bitcoin Mining, Generative AI, and Scientific Computing. Soluna's mission is to elevate renewable energy to a global superpower status using computing as a catalyst.

Soluna Holdings' primary business activities revolve around the provision of infrastructure for computing-intensive applications. The company's operations span across various countries and regions, primarily focusing on areas with abundant surplus renewable energy. The company's offerings are not limited to Bitcoin Mining but extend to other compute-intensive applications, making it a versatile player in the digital infrastructure industry.

The company generates revenue through a variety of products and services. Its primary revenue streams include Bitcoin Mining, Bitcoin Hosting, and Demand Response Services. Bitcoin Mining involves the process of validating Bitcoin transactions and adding them to the blockchain, a decentralized digital ledger. Bitcoin Hosting refers to the provision of infrastructure and services to other entities engaged in Bitcoin Mining. Demand Response Services involve the flexible adjustment of electricity consumption in response to changes in the grid's supply-demand balance.

Soluna Holdings operates in a highly competitive industry, with key competitors including Riot Platforms, Core Scientific, Cipher Mining, Hut 8 Mining, Hive Blockchain Technologies, Bitfarms, Cleanspark, Iris Energy, Bit Digital, and TeraWulf. However, Soluna holds several competitive advantages, such as its power pipeline and its proprietary data center operating system, MaestroOS. These advantages enable the company to provide a reliable and efficient service to its customers.

Soluna Holdings' customer base primarily consists of prominent Bitcoin Mining companies. These customers utilize Soluna's infrastructure and services to conduct their Bitcoin Mining operations, leveraging the company's access to surplus renewable energy.

The company's product portfolio includes several brand names and trade names. Its primary offerings include Bitcoin Mining, Bitcoin Hosting, and Demand Response Services. These services are provided under the Soluna Holdings brand, demonstrating the company's commitment to quality and reliability.

Price action

Investment thesis

Bull case

Healthy cash reserves of 55M provide 5.45x coverage of short-term debt 10.10M, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 141.44M provides 5.25x coverage of total debt 26.93M, indicating robust asset backing and low credit risk.
Robust tangible asset base of 141.44M provides 13.85x coverage of working capital 10.21M, indicating strong operational backing.
Cash reserves of 55M provide robust 0.98x coverage of current liabilities 56.19M, indicating strong short-term solvency.
Cash reserves of 55M provide solid 9.92x coverage of other non-current liabilities 5.54M, indicating strong liquidity.

Bear case

Operating cash flow of (5.14M) barely covers its investment activities of (23.60M), with a coverage ratio of 0.22, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
The company's operating cash flow of (5.14M) shows concerning coverage of stock compensation expenses of 7.70M, with a -0.67 ratio indicating potential earnings quality issues.
Free cash flow of (28.64M) provides weak coverage of capital expenditures of 23.50M, with a -1.22 ratio suggesting additional external financing needs for growth initiatives.
Operating earnings of (77.28M) show weak coverage of depreciation charges of 15.95M, with a -4.85 ratio indicating high capital intensity and potential reinvestment needs.
Free cash flow of (28.64M) represents just -2.58x of debt issuance 11.08M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Capital Markets

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	GS	Goldman Sachs Group Inc	284.23 Bn	17.94	4.84	911.32 Bn
2	MS	Morgan Stanley	279.63 Bn	17.97	4.05	353.12 Bn
3	SCHW	Schwab Charles Corp	179.33 Bn	23.09	7.83	27.59 Bn
4	HOOD	Robinhood Markets, Inc.	106.92 Bn	48.73	25.43	0.00 Bn
5	CRCL	Circle Internet Group, Inc.	40.97 Bn	261.00	24.22	0.15 Bn
6	IBKR	Interactive Brokers Group, Inc.	28.23 Bn	30.79	4.75	28.43 Bn
7	LPLA	LPL Financial Holdings Inc.	27.60 Bn	33.13	1.77	7.52 Bn
8	FUTU	Futu Holdings Ltd	22.89 Bn	18.13	8.54	1.75 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	0.16	1.07
EV to Cash from Ops. EV/CFO	-4.82	15.33
EV to Debt EV to Debt	0.92	21.89
EV to EBIT EV/EBIT	-0.32	-0.80
EV to EBITDA EV/EBITDA	-0.55	11.20
EV to Free Cash Flow [EV/FCF] EV/FCF	-0.86	43.08
EV to Market Cap EV to Market Cap	1.86	-0.05
EV to Revenue EV/Rev	0.86	12.82
Price to Book Value [P/B] P/B	0.92	3.09
Price to Earnings [P/E] P/E	-0.17	6.20

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Dividend Coverage Ratio	0.00	4.22
Dividend Payout Ratio % Div Payout % (Qtr)	0.00	10.37
Dividend per Basic Share Div per Share (Qtr)	0.00	0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	0.00	-8.68
Interest Coverage Int. cover (Qtr)	-18.94	37.53

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	-201.31	-12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	411.78	1,588.78
Dividend Growth (1y) % Dividend Growth (1y) %	0.00	4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	-166.93	270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	-43,672.82	333.57
EBIT Growth (1y) % EBIT 1y % (Qtr)	-155.72	3,103.22
EBT Growth (1y) % EBT 1y % (Qtr)	-151.82	3,039.53
EPS Growth (1y) % EPS 1y % (Qtr)	17.81	24.25
FCF Growth (1y) % FCF 1y % (Qtr)	-192.37	-80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	-68.47	51.33

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	0.19	0.42
Cash Payout Ratio Cash Payout (Qtr)	0.00	-0.08
Cash Ratio Cash Ratio (Qtr)	0.98	2.01
Current Ratio Curr Ratio (Qtr)	1.18	3.47
Debt to Equity Ratio Debt/Equity (Qtr)	1.86	1.46
Interest Cover Ratio Int Coverage (Qtr)	-18.94	37.53
Times Interest Earned Times Interest Earned (Qtr)	-18.94	37.53

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	-213.10	76.68
EBIT Margin % EBIT Margin % (Qtr)	-268.49	46.81
EBT Margin % EBT Margin % (Qtr)	-282.67	58.57
Gross Margin % Gross Margin % (Qtr)	15.30	53.60
Net Profit Margin % Net Margin % (Qtr)	-274.20	29.41

Soluna Holdings, Inc (NASDAQ: SLNH)

About

Price action

Investment thesis

Bull case

Bear case

Peer comparison

Industry comparisons

Create an account

Sign In

Reset Password

Get Pro for 60% off