SOL SPA (SOL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:SOL - IT0001206769 - Common Stock
48.95 EUR
+0.25 (+0.51%)
We assign a fundamental rating of 6 out of 10 to SOL. SOL was compared to 68 industry peers in the Chemicals industry. SOL has an excellent profitability rating, but there are some minor concerns on its financial health. SOL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SOL had positive earnings in the past year.
In the past year SOL had a positive cash flow from operations.
In the past 5 years SOL has always been profitable.
In the past 5 years SOL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SOL (6.90%) is better than 77.94% of its industry peers.
Looking at the Return On Equity, with a value of 14.75%, SOL belongs to the top of the industry, outperforming 83.82% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.43%, SOL is doing good in the industry, outperforming 76.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SOL is above the industry average of 7.01%.
| 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
The Profit Margin of SOL (9.17%) is better than 76.47% 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 79.41% of its industry peers.
In the last couple of years the Operating Margin of SOL has grown nicely.
The Gross Margin of SOL (74.36%) is better than 98.53% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SOL is still creating some value.
The number of shares outstanding for SOL remains at a similar level compared to 1 year ago.
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
An Altman-Z score of 4.20 indicates that SOL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.20, SOL belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
SOL has a Debt/Equity ratio of 0.70. This is a neutral value indicating SOL is somewhat dependend on debt financing.
SOL has a worse Debt to Equity ratio (0.70) than 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.2 |
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.
SOL has a Current ratio of 2.29. This is in the better half of the industry: SOL outperforms 75.00% 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.
SOL has a better Quick ratio (2.04) than 86.76% of its industry peers.
| 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.
The Earnings Per Share has been growing by 24.51% on average over the past years. This is a very strong growth
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.
Based on estimates for the next years, SOL will show a small growth in Revenue. The Revenue will grow by 5.14% on average per year.
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 28.46.
SOL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.77. SOL is around the same levels.
The Price/Forward Earnings ratio is 23.83, which indicates a rather expensive current valuation of SOL.
Based on the Price/Forward Earnings ratio, SOL is valued a bit more expensive than 61.76% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, SOL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.46 | ||
| Fwd PE | 23.83 |
4.2 Price Multiples
SOL's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SOL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SOL may justify a higher PE ratio.
PEG (NY)2.91
PEG (5Y)1.16
EPS Next 2Y9.87%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
SOL has a yearly dividend return of 0.80%, which is pretty low.
SOL's Dividend Yield is slightly below the industry average, which is at 2.51.
With a Dividend Yield of 0.80, SOL pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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 (12/30/2025, 7:00:00 PM)
48.95
+0.25 (+0.51%)
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 Cap4.44B
Revenue(TTM)1.70B
Net Income(TTM)156.30M
Analysts77.78
Price Target54.75 (11.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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%
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)-2.12%
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 | 28.46 | ||
| Fwd PE | 23.83 | ||
| P/S | 2.6 | ||
| P/FCF | N/A | ||
| P/OCF | 17.88 | ||
| P/B | 4.19 | ||
| P/tB | 5.98 | ||
| EV/EBITDA | 11.84 |
EPS(TTM)1.72
EY3.51%
EPS(NY)2.05
Fwd EY4.2%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)2.74
OCFY5.59%
SpS18.8
BVpS11.68
TBVpS8.18
PEG (NY)2.91
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 | 4.2 |
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%.