SOL SPA (SOL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:SOL - IT0001206769 - Common Stock
48.75 EUR
+0.1 (+0.21%)
Taking everything into account, SOL scores 6 out of 10 in our fundamental rating. SOL was compared to 75 industry peers in the Chemicals industry. SOL has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, SOL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SOL had positive earnings in the past year.
SOL had a positive operating cash flow in the past year.
In the past 5 years SOL has always been profitable.
SOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.90%, SOL is in the better half of the industry, outperforming 77.33% of the companies in the same industry.
SOL has a Return On Equity of 14.75%. This is amongst the best in the industry. SOL outperforms 82.67% of its industry peers.
SOL's Return On Invested Capital of 9.43% is fine compared to the rest of the industry. SOL outperforms 76.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOL is above the industry average of 7.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 14.75% | ||
| ROIC | 9.43% |
ROA(3y)7.4%
ROA(5y)7.14%
ROE(3y)15.45%
ROE(5y)15.08%
ROIC(3y)9.86%
ROIC(5y)9.24%
1.3 Margins
With a decent Profit Margin value of 9.17%, SOL is doing good in the industry, outperforming 74.67% of the companies in the same industry.
In the last couple of years the Profit Margin of SOL has grown nicely.
SOL has a better Operating Margin (14.58%) than 80.00% of its industry peers.
In the last couple of years the Operating Margin of SOL has grown nicely.
SOL's Gross Margin of 74.36% is amongst the best of the industry. SOL outperforms 98.67% of its industry peers.
In the last couple of years the Gross Margin of SOL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.58% | ||
| PM (TTM) | 9.17% | ||
| GM | 74.36% |
OM growth 3Y6.63%
OM growth 5Y6.24%
PM growth 3Y4.46%
PM growth 5Y10.95%
GM growth 3Y0.25%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SOL is creating some value.
Compared to 1 year ago, SOL has about the same amount of shares outstanding.
Compared to 5 years ago, SOL has about the same amount of shares outstanding.
SOL has a better debt/assets ratio than last year.
2.2 Solvency
SOL has an Altman-Z score of 4.19. This indicates that SOL is financially healthy and has little risk of bankruptcy at the moment.
SOL has a better Altman-Z score (4.19) than 82.67% of its industry peers.
SOL has a Debt/Equity ratio of 0.70. This is a neutral value indicating SOL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, SOL is not doing good in the industry: 65.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.19 |
ROIC/WACC1.16
WACC8.16%
2.3 Liquidity
A Current Ratio of 2.29 indicates that SOL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.29, SOL is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
A Quick Ratio of 2.04 indicates that SOL has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.04, SOL belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.79% over the past year.
SOL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.51% yearly.
Looking at the last year, SOL shows a quite strong growth in Revenue. The Revenue has grown by 11.37% in the last year.
SOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.23% yearly.
EPS 1Y (TTM)10.79%
EPS 3Y18.14%
EPS 5Y24.51%
EPS Q2Q%11.5%
Revenue 1Y (TTM)11.37%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%12.12%
3.2 Future
SOL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.80% yearly.
The Revenue is expected to grow by 5.14% on average over the next years.
EPS Next Y9.79%
EPS Next 2Y9.87%
EPS Next 3Y8.8%
EPS Next 5YN/A
Revenue Next Year10.54%
Revenue Next 2Y8.77%
Revenue Next 3Y8.22%
Revenue Next 5Y5.14%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SOL is valuated quite expensively with a Price/Earnings ratio of 28.34.
SOL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.61. SOL is around the same levels.
Based on the Price/Forward Earnings ratio of 23.73, the valuation of SOL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SOL is valued a bit more expensive than 65.33% of the companies in the same industry.
SOL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.34 | ||
| Fwd PE | 23.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SOL may justify a higher PE ratio.
PEG (NY)2.89
PEG (5Y)1.16
EPS Next 2Y9.87%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
SOL has a yearly dividend return of 0.81%, which is pretty low.
Compared to an average industry Dividend Yield of 2.58, SOL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.87, SOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
The dividend of SOL is nicely growing with an annual growth rate of 16.74%!
Dividend Growth(5Y)16.74%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
24.08% of the earnings are spent on dividend by SOL. This is a low number and sustainable payout ratio.
The dividend of SOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.08%
EPS Next 2Y9.87%
EPS Next 3Y8.8%
BIT:SOL (12/23/2025, 5:35:15 PM)
48.75
+0.1 (+0.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners21.19%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.42B
Revenue(TTM)1.70B
Net Income(TTM)156.30M
Analysts77.78
Price Target54.75 (12.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend0.42
Dividend Growth(5Y)16.74%
DP24.08%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.38%
PT rev (3m)2.79%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-16.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.34 | ||
| Fwd PE | 23.73 | ||
| P/S | 2.59 | ||
| P/FCF | N/A | ||
| P/OCF | 17.8 | ||
| P/B | 4.17 | ||
| P/tB | 5.96 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)1.72
EY3.53%
EPS(NY)2.05
Fwd EY4.21%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)2.74
OCFY5.62%
SpS18.8
BVpS11.68
TBVpS8.18
PEG (NY)2.89
PEG (5Y)1.16
Graham Number21.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 14.75% | ||
| ROCE | 13.56% | ||
| ROIC | 9.43% | ||
| ROICexc | 10.96% | ||
| ROICexgc | 13.59% | ||
| OM | 14.58% | ||
| PM (TTM) | 9.17% | ||
| GM | 74.36% | ||
| FCFM | N/A |
ROA(3y)7.4%
ROA(5y)7.14%
ROE(3y)15.45%
ROE(5y)15.08%
ROIC(3y)9.86%
ROIC(5y)9.24%
ROICexc(3y)11.29%
ROICexc(5y)10.84%
ROICexgc(3y)14.14%
ROICexgc(5y)13.44%
ROCE(3y)14.19%
ROCE(5y)13.36%
ROICexgc growth 3Y7.2%
ROICexgc growth 5Y5.88%
ROICexc growth 3Y6.27%
ROICexc growth 5Y5.33%
OM growth 3Y6.63%
OM growth 5Y6.24%
PM growth 3Y4.46%
PM growth 5Y10.95%
GM growth 3Y0.25%
GM growth 5Y-0.73%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 156.86% | ||
| Cap/Sales | 14.98% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 60.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 4.19 |
F-Score6
WACC8.16%
ROIC/WACC1.16
Cap/Depr(3y)142.12%
Cap/Depr(5y)134.91%
Cap/Sales(3y)13.67%
Cap/Sales(5y)13.69%
Profit Quality(3y)37.87%
Profit Quality(5y)46.73%
High Growth Momentum
Growth
EPS 1Y (TTM)10.79%
EPS 3Y18.14%
EPS 5Y24.51%
EPS Q2Q%11.5%
EPS Next Y9.79%
EPS Next 2Y9.87%
EPS Next 3Y8.8%
EPS Next 5YN/A
Revenue 1Y (TTM)11.37%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%12.12%
Revenue Next Year10.54%
Revenue Next 2Y8.77%
Revenue Next 3Y8.22%
Revenue Next 5Y5.14%
EBIT growth 1Y7.54%
EBIT growth 3Y20.6%
EBIT growth 5Y19.23%
EBIT Next Year42.76%
EBIT Next 3Y17.96%
EBIT Next 5YN/A
FCF growth 1Y-108.3%
FCF growth 3Y1.91%
FCF growth 5Y18.79%
OCF growth 1Y-11.74%
OCF growth 3Y15.6%
OCF growth 5Y9.8%
SOL SPA / SOL.MI FAQ
What is the fundamental rating for SOL stock?
ChartMill assigns a fundamental rating of 6 / 10 to SOL.MI.
Can you provide the valuation status for SOL SPA?
ChartMill assigns a valuation rating of 2 / 10 to SOL SPA (SOL.MI). This can be considered as Overvalued.
What is the profitability of SOL stock?
SOL SPA (SOL.MI) has a profitability rating of 8 / 10.
What is the earnings growth outlook for SOL SPA?
The Earnings per Share (EPS) of SOL SPA (SOL.MI) is expected to grow by 9.79% in the next year.
Is the dividend of SOL SPA sustainable?
The dividend rating of SOL SPA (SOL.MI) is 3 / 10 and the dividend payout ratio is 24.08%.