Is Solo Brands Stock a Good Investment?
Solo Brands Investment Advice | DTC |
- Examine Solo Brands' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Solo Brands' leadership team and their track record. Good management can help Solo Brands navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Leisure Products space and any emerging trends that could impact Solo Brands' business and its evolving consumer preferences.
- Compare Solo Brands' performance and market position to its competitors. Analyze how Solo Brands is positioned in terms of product offerings, innovation, and market share.
- Check if Solo Brands pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Solo Brands' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Solo Brands stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Solo Brands is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Unstable | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Excited | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Solo Brands Stock
Researching Solo Brands' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.44. Some equities with similar Price to Book (P/B) outperform the market in the long run. Solo Brands has Price/Earnings To Growth (PEG) ratio of 0.57. The entity recorded a loss per share of 3.35. The firm had not issued any dividends in recent years.
To determine if Solo Brands is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Solo Brands' research are outlined below:
| Solo Brands generated a negative expected return over the last 90 days | |
| Solo Brands may become a speculative penny stock | |
| Solo Brands has high historical volatility and very poor performance | |
| The company reported the last year's revenue of 494.78 M. Reported Net Loss for the year was (111.35 M) with profit before taxes, overhead, and interest of 318.18 M. | |
| Solo Brands has a poor financial position based on the latest SEC disclosures | |
| Over 98.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from retaildive.com: Olive June to be acquired by Hydro Flask owner for 240M |
Solo Brands Quarterly Good Will |
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Solo Brands uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Solo Brands. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Solo Brands' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of March 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Solo Brands' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Solo Brands' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-11-07 | 2024-09-30 | 0.0255 | 0.02 | -0.0055 | 21 | ||
2024-05-09 | 2024-03-31 | -0.01 | 0.03 | 0.04 | 400 | ||
2024-03-14 | 2023-12-31 | 0.17 | 0.13 | -0.04 | 23 | ||
2023-05-04 | 2023-03-31 | 0.09 | 0.16 | 0.07 | 77 | ||
2022-11-10 | 2022-09-30 | 0.07 | 0.15 | 0.08 | 114 | ||
2024-08-07 | 2024-06-30 | 0.13 | 0.04 | -0.09 | 69 | ||
2023-03-09 | 2022-12-31 | 0.23 | 0.33 | 0.1 | 43 | ||
2021-12-08 | 2021-09-30 | 0.14 | 0.04 | -0.1 | 71 |
Know Solo Brands' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Solo Brands is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Solo Brands backward and forwards among themselves. Solo Brands' institutional investor refers to the entity that pools money to purchase Solo Brands' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Jacobs Levy Equity Management, Inc. | 2024-09-30 | 536.3 K | Dimensional Fund Advisors, Inc. | 2024-09-30 | 501.1 K | State Street Corp | 2024-06-30 | 436.7 K | Empowered Funds, Llc | 2024-06-30 | 381.3 K | Marshall Wace Asset Management Ltd | 2024-06-30 | 330.2 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 271 K | Ameriprise Financial Inc | 2024-06-30 | 255.4 K | Northern Trust Corp | 2024-09-30 | 217.2 K | Goldman Sachs Group Inc | 2024-06-30 | 185.3 K | Summit Partners L P | 2024-09-30 | 44 M | American Century Companies Inc | 2024-09-30 | 5.6 M |
Solo Brands' market capitalization trends
The company currently falls under 'Micro-Cap' category with a total capitalization of 74.4 M.Market Cap |
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Solo Brands' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.41) | (0.44) | |
| Return On Capital Employed | (0.40) | (0.38) | |
| Return On Assets | (0.17) | (0.16) | |
| Return On Equity | (0.46) | (0.44) |
Determining Solo Brands' profitability involves analyzing its financial statements and using various financial metrics to determine if Solo Brands is a good buy. For example, gross profit margin measures Solo Brands' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Solo Brands' profitability and make more informed investment decisions.
Please note, the presentation of Solo Brands' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Solo Brands' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Solo Brands' management manipulating its earnings.
Evaluate Solo Brands' management efficiency
Solo Brands has Return on Asset of (0.026) % which means that on every $100 spent on assets, it lost $0.026. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (0.7967) %, meaning that it generated no profit with money invested by stockholders. Solo Brands' management efficiency ratios could be used to measure how well Solo Brands manages its routine affairs as well as how well it operates its assets and liabilities. As of November 24, 2024, Return On Tangible Assets is expected to decline to -0.44. The current year's Return On Capital Employed is expected to grow to -0.38. At present, Solo Brands' Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 8.6 M, whereas Net Tangible Assets are forecasted to decline to (239.9 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 6.15 | 4.08 | |
| Tangible Book Value Per Share | (0.30) | (0.32) | |
| Enterprise Value Over EBITDA | 11.05 | 11.60 | |
| Price Book Value Ratio | 1.54 | 1.47 | |
| Enterprise Value Multiple | 11.05 | 11.60 | |
| Price Fair Value | 1.54 | 1.47 | |
| Enterprise Value | 1.8 B | 1.9 B |
Understanding the operational decisions made by Solo Brands management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Beta 2.553 |
Basic technical analysis of Solo Stock
As of the 24th of November, Solo Brands has the Variance of 17.14, risk adjusted performance of (0.02), and Coefficient Of Variation of (3,242). Solo Brands technical analysis provides you with a way to harness past market data to determine a pattern that measures the direction of the company's future prices.Solo Brands' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Solo Brands insiders, such as employees or executives, is commonly permitted as long as it does not rely on Solo Brands' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Solo Brands insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Solo Brands' Outstanding Corporate Bonds
Solo Brands issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Solo Brands uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Solo bonds can be classified according to their maturity, which is the date when Solo Brands has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View |
Understand Solo Brands' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Solo Brands' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.06) | |||
| Mean Deviation | 3.15 | |||
| Coefficient Of Variation | (3,242) | |||
| Standard Deviation | 4.14 | |||
| Variance | 17.14 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.36) | |||
| Total Risk Alpha | (0.79) | |||
| Treynor Ratio | (0.07) | |||
| Maximum Drawdown | 19.35 | |||
| Value At Risk | (6.38) | |||
| Potential Upside | 7.19 | |||
| Skewness | 0.6072 | |||
| Kurtosis | 0.3675 |
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.06) | |||
| Mean Deviation | 3.15 | |||
| Coefficient Of Variation | (3,242) | |||
| Standard Deviation | 4.14 | |||
| Variance | 17.14 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.36) | |||
| Total Risk Alpha | (0.79) | |||
| Treynor Ratio | (0.07) | |||
| Maximum Drawdown | 19.35 | |||
| Value At Risk | (6.38) | |||
| Potential Upside | 7.19 | |||
| Skewness | 0.6072 | |||
| Kurtosis | 0.3675 |
Consider Solo Brands' intraday indicators
Solo Brands intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Solo Brands stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Solo Brands time-series forecasting models is one of many Solo Brands' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Solo Brands' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Solo Stock media impact
Far too much social signal, news, headlines, and media speculation about Solo Brands that are available to investors today. That information is available publicly through Solo media outlets and privately through word of mouth or via Solo internal channels. However, regardless of the origin, that massive amount of Solo data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Solo Brands news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Solo Brands relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Solo Brands' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Solo Brands alpha.
Solo Brands Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Solo Brands can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Solo Brands Corporate Management
| Kent Christensen | General Counsel | Profile | |
| John Merris | CEO Pres | Profile | |
| Matthew Webb | Chief Officer | Profile | |
| Michael Studdard | Chief Officer | Profile | |
| Mike Murray | Chief Officer | Profile | |
| Thomas Montgomery | Chief Officer | Profile | |
| Kent JD | General Counsel | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Solo Brands. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. For information on how to trade Solo Stock refer to our How to Trade Solo Stock guide.You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Is Leisure Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Solo Brands. If investors know Solo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Solo Brands listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.98) | Earnings Share (3.35) | Revenue Per Share 8.184 | Quarterly Revenue Growth (0.15) | Return On Assets (0.03) |
The market value of Solo Brands is measured differently than its book value, which is the value of Solo that is recorded on the company's balance sheet. Investors also form their own opinion of Solo Brands' value that differs from its market value or its book value, called intrinsic value, which is Solo Brands' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Solo Brands' market value can be influenced by many factors that don't directly affect Solo Brands' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Solo Brands' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Solo Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Solo Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.