SOL SPA (SOL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:SOL - IT0001206769 - Common Stock
48.05 EUR
+0.05 (+0.1%)
SOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 70 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
In the past year SOL was profitable.
SOL had a positive operating cash flow in the past year.
Each year in the past 5 years SOL has been profitable.
In the past 5 years SOL always reported a positive cash flow from operatings.
1.2 Ratios
SOL's Return On Assets of 6.90% is fine compared to the rest of the industry. SOL outperforms 80.00% of its industry peers.
SOL has a better Return On Equity (14.75%) than 84.29% of its industry peers.
SOL has a Return On Invested Capital of 9.43%. This is in the better half of the industry: SOL outperforms 78.57% of its industry peers.
SOL had an Average Return On Invested Capital over the past 3 years of 9.86%. This is above the industry average of 6.86%.
| 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
SOL has a better Profit Margin (9.17%) than 75.71% of its industry peers.
In the last couple of years the Profit Margin of SOL has grown nicely.
SOL has a Operating Margin of 14.58%. This is in the better half of the industry: SOL outperforms 80.00% of its industry peers.
SOL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 74.36%, SOL belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
SOL's Gross Margin has been stable in the last couple of years.
| 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
SOL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SOL has about the same amount of shares outstanding.
The number of shares outstanding for SOL remains at a similar level compared to 5 years ago.
The debt/assets ratio for SOL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.16 indicates that SOL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.16, SOL belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that SOL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, SOL is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.16 |
ROIC/WACC1.16
WACC8.14%
2.3 Liquidity
A Current Ratio of 2.29 indicates that SOL has no problem at all paying its short term obligations.
SOL's Current ratio of 2.29 is fine compared to the rest of the industry. SOL outperforms 74.29% of its industry peers.
SOL has a Quick Ratio of 2.04. This indicates that SOL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.04, SOL belongs to the best of the industry, outperforming 87.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
SOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.79%, which is quite good.
Measured over the past years, SOL shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.51% on average per year.
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
The Earnings Per Share is expected to grow by 8.80% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 27.94, SOL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as SOL.
SOL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.39 indicates a rather expensive valuation of SOL.
61.43% of the companies in the same industry are cheaper than SOL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SOL to the average of the S&P500 Index (23.83), we can say SOL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.94 | ||
| Fwd PE | 23.39 |
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 | 11.64 |
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)2.85
PEG (5Y)1.14
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.
SOL's Dividend Yield is slightly below the industry average, which is at 2.49.
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
On average, the dividend of SOL grows each year by 16.74%, which is quite nice.
Dividend Growth(5Y)16.74%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SOL pays out 24.08% of its income as dividend. This is a 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 (12/19/2025, 7:00:00 PM)
48.05
+0.05 (+0.1%)
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 Cap4.36B
Revenue(TTM)1.70B
Net Income(TTM)156.30M
Analysts77.78
Price Target54.75 (13.94%)
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 | 27.94 | ||
| Fwd PE | 23.39 | ||
| P/S | 2.56 | ||
| P/FCF | N/A | ||
| P/OCF | 17.55 | ||
| P/B | 4.11 | ||
| P/tB | 5.87 | ||
| EV/EBITDA | 11.64 |
EPS(TTM)1.72
EY3.58%
EPS(NY)2.05
Fwd EY4.28%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)2.74
OCFY5.7%
SpS18.8
BVpS11.68
TBVpS8.18
PEG (NY)2.85
PEG (5Y)1.14
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 | 4.16 |
F-Score6
WACC8.14%
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%.