Sei Medical
SEI
$51.28
+18.10%
Solaris Energy Infrastructure, Inc. provides modular and scalable equipment-based solutions for power generation, control, distribution, and raw material management in oil and natural gas well completions, serving the oil & gas equipment and services industry. The company differentiates itself through its integrated wellsite solutions and a dual-segment structure—Solaris Power Solutions and Solaris Logistics Solutions—with the power segment driving the majority of revenue. The current investor narrative centers on the company's pivot to serving AI data centers, as evidenced by a recent Q1 earnings beat and raised guidance, which has sparked debate about the sustainability of this growth catalyst and the potential for margin expansion beyond traditional energy end markets.…
SEI
Sei Medical
$51.28
Related headlines
Investment Opinion: Should I buy SEI Today?
Rating: Buy. The thesis is that Solaris Energy Infrastructure's pivot to AI data center power solutions is driving accelerating revenue growth and margin expansion, and the stock's 29% correction from highs offers an attractive entry point with 74.6% upside to the average analyst target of $94.34. The consensus is strong buy, and the forward P/E of 23.15x is reasonable given expected EPS growth.
Supporting Evidence: Q1 2026 revenue grew 55.34% YoY to $196.2M, net income swung to $21.4M from a loss, gross margin improved to 37.05%, and operating margin reached 25.76%. The forward P/E of 23.15x is supported by a PEG ratio of 1.89x, and the average analyst target implies significant upside. The company's EV/Sales of 7.4x is elevated but justified by the growth rate.
Risks & Conditions: The biggest risks are negative free cash flow (-$264.3M) and high debt (D/E 1.91x), which could become problematic if growth decelerates. This Buy rating would be downgraded to Hold if revenue growth falls below 30% YoY or if free cash flow turns more negative. The stock is fairly valued relative to its growth prospects but overvalued on trailing metrics — the forward P/E is the key metric to watch.
Sign up to view all
SEI 12-Month Price Forecast
The AI-driven growth story is compelling, with strong revenue acceleration and improving profitability. The stock's recent correction provides a better entry point, but the negative free cash flow and high debt temper confidence. The base case of 40-50% growth and a target near $94 is most likely. An upgrade to high confidence would require positive free cash flow and sustained margin expansion.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Sei Medical's 12-month outlook, with a consensus price target around $94.34 and implied upside of +84.0% versus the current price.
Average Target
$94.34
0 analysts
Implied Upside
+84.0%
vs. current price
Analyst Count
—
covering this stock
Price Range
$80 - $120
Analyst target range
The stock is covered by 14 analysts, with a consensus recommendation of 'strong_buy' (mean recommendation 1.5 on a 1-5 scale). The average target price is $94.34, implying a substantial 74.6% upside from the current price of $54.03. The distribution leans heavily bullish, with no sell ratings and recent upgrades from firms like Morgan Stanley (Overweight) and Citigroup (Buy). The target range spans from a low of $80.00 to a high of $120.00, representing a wide spread of $40.00, which signals high uncertainty about the company's future growth trajectory. The high target of $120.00 assumes continued acceleration in AI data center demand and successful execution of the growth strategy, while the low target of $80.00 likely prices in a more conservative scenario with potential margin compression or competitive pressures. Recent institutional ratings show consistent bullishness, with firms like Barclays, Piper Sandler, and Stifel maintaining Overweight or Buy ratings, reinforcing the positive sentiment. The wide target spread and strong buy consensus suggest that while analysts are optimistic, there is significant divergence in their expectations for the pace and magnitude of growth.
Bulls vs Bears: SEI Investment Factors
Solaris Energy Infrastructure is a high-growth energy company pivoting to AI data centers, with Q1 2026 revenue accelerating 55% YoY and profitability improving sharply. The bull case is supported by strong analyst conviction (strong buy, 74.6% upside) and a forward P/E that discounts earnings growth. However, the stock has corrected 29% in the past month, free cash flow is deeply negative, and trailing valuation is extreme. The central tension is whether the AI data center catalyst can sustain the growth trajectory to justify the premium — if it does, the stock could re-rate higher; if not, multiple compression could drive significant downside.
Bullish
- AI Data Center Pivot Driving Revenue Acceleration: Q1 2026 revenue surged 55.34% YoY to $196.2M, accelerating from prior quarters, driven by Power Solutions segment exposure to AI data center demand. The company raised guidance after the Q1 beat, signaling sustained momentum.
- Strong Profitability Improvement: Net income swung to $21.4M in Q1 2026 from a loss of -$1.7M in Q4 2025, with gross margin expanding to 37.05% from 30.71%. Operating margin improved to 25.76% from 22.18%, indicating operational leverage.
- Analyst Consensus Strong Buy with 74.6% Upside: 14 analysts rate the stock a strong buy with an average target of $94.34, implying 74.6% upside from $54.03. No sell ratings exist, and recent upgrades from Morgan Stanley and Citigroup reinforce positive sentiment.
- Forward P/E Suggests Earnings Growth Is Priced In: Trailing P/E of 66.62x is high, but forward P/E of 23.15x implies significant earnings growth. The PEG ratio of 1.89x suggests the premium is partially justified by expected growth.
Bearish
- Severe Price Correction and Negative Momentum: The stock has fallen 28.89% in the past month and 25.38% in three months, trading at only 48% of its 52-week range. This sharp decline from the $86.19 high suggests waning investor confidence.
- Negative Free Cash Flow and High Debt: Free cash flow was -$264.3M in Q1 2026 due to $343.4M in capex, and debt-to-equity stands at 1.91x. The negative FCF yield of -13.9% indicates reliance on external financing, a risk if growth slows.
- Elevated Trailing Valuation vs. Industry Peers: Trailing P/E of 66.62x is far above the typical oil & gas equipment & services industry range of 15-20x. Even the forward P/E of 23.15x is at a premium, leaving little room for error.
- High Short Interest and Uncertainty: Short ratio of 6.21 days to cover indicates significant bearish bets. The wide analyst target range ($80-$120) reflects high uncertainty about the AI data center growth trajectory.
SEI Technical Analysis
The stock is in a sustained uptrend over the past year, with a 1-year price change of +59.66%, significantly outperforming the S&P 500's +16.47%. However, the current price of $54.03 sits at only 48% of its 52-week range (low $24.57, high $86.19), indicating a substantial pullback from the highs. This positioning near the lower end of the range suggests the stock may be offering a value opportunity if the long-term uptrend resumes, but also reflects recent selling pressure that could signal a trend reversal if not supported by fundamentals. Short-term momentum is sharply negative, with a 1-month price change of -28.89% and a 3-month change of -25.38%, both diverging dramatically from the positive 1-year trend. This divergence suggests a severe correction or profit-taking after a strong run, and the relative strength versus the S&P 500 is deeply negative over 1-month (-29.67%) and 3-month (-28.88%), confirming broad-based underperformance. The RSI is not directly provided, but the magnitude of the decline implies oversold conditions, which could attract bargain hunters but also risks further downside if the catalyst fades. The 52-week high of $86.19 represents key resistance, while the 52-week low of $24.57 is the major support level. A breakout above $86.19 would signal a resumption of the uptrend and potential new highs, while a breakdown below $24.57 would indicate a complete reversal of the year-long rally. The stock's beta of 1.184 indicates it is 18.4% more volatile than the market, meaning it amplifies both upside and downside moves, which is critical for risk management in a portfolio context.
Beta
1.18
1.18x market volatility
Max Drawdown
-47.6%
Largest decline past year
52-Week Range
$25-$86
Price range past year
Annual Return
+54.2%
Cumulative gain past year
| Period | SEI Return | S&P 500 |
|---|---|---|
| 1m | -36.3% | -0.7% |
| 3m | -29.1% | +2.9% |
| 6m | -7.1% | +7.2% |
| 1y | +54.2% | +16.9% |
| ytd | +2.0% | +8.8% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
SEI Fundamental Analysis
Revenue is growing rapidly, with the most recent quarter (Q1 2026) reporting $196.2 million, a 55.34% year-over-year increase, accelerating from the prior year's growth trajectory. This marks a significant acceleration from Q4 2025's $179.7 million and Q3 2025's $166.8 million, driven by the Power Solutions segment's exposure to AI data center demand. The company is profitable, with net income of $21.4 million in Q1 2026, reversing a net loss of -$1.7 million in Q4 2025, and gross margin improved to 37.05% from 30.71% in the prior quarter. Operating margin expanded to 25.76% in Q1 2026 from 22.18% in Q4 2025, indicating improving operational efficiency and pricing power. The balance sheet shows a debt-to-equity ratio of 1.91, which is elevated, and free cash flow was deeply negative at -$264.3 million in Q1 2026, largely due to heavy capital expenditures of $343.4 million for growth investments. However, the current ratio of 2.96 suggests adequate short-term liquidity, and the company generated $79.0 million in operating cash flow in Q1 2026, up from $95.9 million in Q4 2025. ROE of 5.35% is modest but improving, and the negative free cash flow yield (-13.9% based on current price) indicates reliance on external financing or debt to fund expansion, which is a risk if growth slows.
Quarterly Revenue
$196239000.0B
2026-03
Revenue YoY Growth
+55.3%
YoY Comparison
Gross Margin
37.0%
Latest Quarter
Free Cash Flow
$-583386999.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Open an Account, get $2 TSLA now!
Valuation Analysis: Is SEI Overvalued?
Since net income is positive ($21.4 million in Q1 2026), the primary valuation metric is the P/E ratio. The trailing P/E is 66.62x, while the forward P/E is 23.15x, implying the market expects significant earnings growth over the next year. The gap between trailing and forward P/E suggests that the current price already discounts a sharp earnings recovery, which is consistent with the recent Q1 beat and raised guidance. Compared to the industry average (not provided, but typical for oil & gas equipment & services is around 15-20x), the trailing P/E of 66.62x appears extremely expensive, but the forward P/E of 23.15x is more in line with growth expectations. The P/S ratio of 3.38x is also elevated versus historical norms, reflecting the premium for growth. Historically, the stock's trailing P/E has ranged from a low of 8.68x (Q2 2023) to a high of 80.81x (Q3 2021), with the current 66.62x near the upper end of that range. This suggests the market is pricing in optimistic growth expectations, and any disappointment could lead to multiple compression. The PEG ratio of 1.89x indicates that the P/E is somewhat justified by expected earnings growth, but it is not cheap.
PE
66.6x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 9x~39x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: The company's negative free cash flow of -$264.3M in Q1 2026, driven by $343.4M in capex, creates a cash burn that requires external financing. With a debt-to-equity ratio of 1.91x, the balance sheet is leveraged, and any slowdown in revenue growth could strain debt servicing. Operating margin improved to 25.76%, but the reliance on the Power Solutions segment for the majority of revenue means a disruption in AI data center demand could severely impact earnings. The trailing P/E of 66.62x leaves little margin for error — a minor earnings miss could trigger a sharp de-rating.
Market & Competitive Risks: The stock's beta of 1.184 makes it 18.4% more volatile than the market, amplifying downside in a downturn. The 28.89% one-month decline already reflects a loss of investor confidence, and the short ratio of 6.21 days indicates persistent bearish sentiment. Competition in the AI data center power solutions space is intensifying, and the company's pivot from oil & gas may face skepticism. Regulatory risks around data center energy consumption or changes in AI infrastructure spending could also weigh on the stock.
Worst-Case Scenario: If AI data center demand disappoints or the company fails to execute its growth strategy, the stock could fall to its 52-week low of $24.57, representing a 54.5% decline from the current price of $54.03. This scenario would likely involve multiple compression as the forward P/E expands to reflect lower growth expectations, and analyst downgrades could accelerate selling. The historical max drawdown of -34.81% suggests that a drop of this magnitude is plausible, but a re-test of the 52-week low would be more severe.
FAQ
The primary risks are financial: negative free cash flow of -$264.3M and debt-to-equity of 1.91x could strain the balance sheet if growth slows. Market risk is high with a beta of 1.184, and the stock has already fallen 28.89% in one month. Competitive risk comes from other companies targeting AI data center power solutions. Company-specific risk includes execution on the pivot from oil & gas to data centers. The most severe risk is a 54.5% decline to the 52-week low of $24.57 if the AI catalyst fades.
Analysts are bullish, with a strong buy consensus and an average target of $94.34 (74.6% upside). The bull case (30% probability) sees the stock reaching $120, driven by accelerating AI demand. The base case (45% probability) targets $80-$94, assuming steady growth. The bear case (25% probability) sees the stock falling to $24.57 if growth disappoints. The most likely scenario is the base case, with revenue growth moderating to 40-50% and margins stabilizing.
SEI's trailing P/E of 66.62x is extremely high compared to the oil & gas equipment & services industry average of 15-20x, suggesting the stock is overvalued on historical earnings. However, the forward P/E of 23.15x is more reasonable and reflects expected earnings growth. The PEG ratio of 1.89x indicates the premium is partially justified. The P/S ratio of 3.38x is also elevated. Overall, the stock is priced for perfection — if growth continues at 50%+, it may be fairly valued; if growth disappoints, significant multiple compression could occur.
SEI is a high-risk, high-reward opportunity. The stock has strong analyst support (strong buy, 74.6% upside to $94.34) and impressive revenue growth of 55.34% YoY, driven by AI data center demand. However, the stock has corrected 28.89% in the past month, and the negative free cash flow of -$264.3M and high debt-to-equity of 1.91x are significant risks. For investors with a high risk tolerance and a long-term horizon, the current price near $54 could be an attractive entry point if the AI catalyst sustains. Conservative investors should wait for evidence of positive free cash flow or a clearer growth trajectory.
SEI is better suited for long-term investment given its high volatility (beta 1.184) and speculative growth story. The stock has a dividend yield of 1.04%, but the payout ratio of 72% suggests limited dividend growth. Short-term trading is risky due to the 28.89% one-month decline and high short interest (6.21 days). A minimum holding period of 12-18 months is recommended to allow the AI data center catalyst to materialize. Long-term investors should monitor free cash flow and debt levels closely.