Solaris Resources Inc. (NYSE: SLSR)

Sector: Basic Materials Industry: Other Precious Metals & Mining CIK: 0002019103
Market Cap -1.62 Bn
P/B 33.80
P/E 27.96
P/S 0.00
ROIC (Qtr) 154.87
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 534,000.00
Debt/Equity (Qtr) -0.01
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About

Investment thesis

Bull case

  • Strong operating cash flow of 36.08M provides robust 67.56x coverage of total debt 534000, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 35.71M provide 469.84x coverage of short-term debt 76000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 61.91M provides 115.93x coverage of total debt 534000, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 36.08M provides 2.45x coverage of SG&A expenses 14.74M, showing efficient operational cost management.
  • Robust free cash flow of 33.18M exceeds capital expenditure of 2.90M by 11.43x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 36.08M barely covers its investment activities of (2.28M), with a coverage ratio of -15.81, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (2.28M) provide weak support for R&D spending of 49.94M, which is -0.05x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 36.08M provides insufficient coverage of deferred revenue obligations of 91.17M, which is 0.40x, raising concerns about future service delivery capabilities.
  • Operating earnings of (52.33M) show weak coverage of depreciation charges of 851000, with a -61.50 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 33.18M represents just -0.73x of debt issuance (45.25M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Other Precious Metals & Mining
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HL Hecla Mining Co/De/ 13.92 Bn 43.35 9.78 275.80 Mn
2 TFPM Triple Flag Precious Metals Corp. 7.13 Bn 34.87 20.73 14.50 Mn
3 PPTA Perpetua Resources Corp. 2.49 Bn -56.16 0.00 0.05 Mn
4 ASM Avino Silver & Gold Mines Ltd 1.28 Bn 82.71 20.45 3.38 Mn
5 MUX McEwen Inc. 1.25 Bn -104.83 7.51 127.73 Mn
6 MTA Metalla Royalty & Streaming Ltd. 0.74 Bn -347.30 96.23 8.77 Mn
7 NEWP New Pacific Metals Corp 0.58 Bn -195.22 0.00 0.00 Mn
8 ELE Elemental Royalty Corp 0.30 Bn -829.72 18.50 0.00 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -26.95 0.38
EV to Cash from Ops. EV/CFO -46.24 46.96
EV to Debt EV to Debt -3,124.27 3,165.55
EV to EBIT EV/EBIT 31.88 -95.38
EV to EBITDA EV/EBITDA 26.14 4.86
EV to Free Cash Flow [EV/FCF] EV/FCF -50.29 31.14
EV to Market Cap EV to Market Cap 1.03 0.86
EV to Revenue EV to Revenue 0.00 13.34
Price to Book Value [P/B] P/B 33.80 6.32
Price to Earnings [P/E] P/E 27.96 -125.76
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.56
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -10.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.02
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 3.93
Interest Coverage Int. cover (Qtr) -9.25 9.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -81.04 -825.54
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -32.73 689.03
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 9.27 85.08
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.39 150.70
EBIT Growth (1y) % EBIT 1y % (Qtr) 9.27 97.21
EBT Growth (1y) % EBT 1y % (Qtr) 5.22 107.49
EPS Growth (1y) % EPS 1y % (Qtr) -12.50 129.12
FCF Growth (1y) % FCF 1y % (Qtr) 169.68 414.62
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 41.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.15
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 6.00 9.29
Current Ratio Curr Ratio (Qtr) 6.06 12.32
Debt to Equity Ratio Debt/Equity (Qtr) -0.01 0.07
Interest Cover Ratio Int Coverage (Qtr) -9.25 9.92
Times Interest Earned Times Interest Earned (Qtr) -9.25 9.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -110.37
EBIT Margin % EBIT Margin % 0.00 -125.82
EBT Margin % EBT Margin % 0.00 -136.05
Gross Margin % Gross Margin % 0.00 27.60
Net Profit Margin % Net Profit Margin % 0.00 -140.71