SOL SPA (SOL.MI) Stock Fundamental Analysis
BIT:SOL - Euronext Milan - IT0001206769 - Common Stock - Currency: EUR
SOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Chemicals industry. SOL scores excellent on profitability, 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 6.91% is amongst the best of the industry. SOL outperforms 82.09% of its industry peers.
Looking at the Return On Equity, with a value of 14.37%, SOL belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.55%, SOL belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SOL is above the industry average of 6.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.91% | ||
| ROE | 14.37% | ||
| ROIC | 9.55% |
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 79.10% of its industry peers.
In the last couple of years the Profit Margin of SOL has grown nicely.
With an excellent Operating Margin value of 14.67%, SOL belongs to the best of the industry, outperforming 85.07% of the companies in the same industry.
SOL's Operating Margin has improved in the last couple of years.
SOL has a Gross Margin of 74.97%. This is amongst the best in the industry. SOL outperforms 98.51% of its industry peers.
SOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.67% | ||
| PM (TTM) | 9.17% | ||
| GM | 74.97% |
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.
SOL has about the same amout of shares outstanding than it did 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
SOL has an Altman-Z score of 4.34. This indicates that SOL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SOL (4.34) is better than 85.07% of its industry peers.
The Debt to FCF ratio of SOL is 14.66, which is on the high side as it means it would take SOL, 14.66 years of fcf income to pay off all of its debts.
SOL's Debt to FCF ratio of 14.66 is in line compared to the rest of the industry. SOL outperforms 56.72% of its industry peers.
SOL has a Debt/Equity ratio of 0.64. This is a neutral value indicating SOL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, SOL is doing worse than 64.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.66 | ||
| Altman-Z | 4.34 |
ROIC/WACC1.15
WACC8.31%
2.3 Liquidity
A Current Ratio of 2.18 indicates that SOL has no problem at all paying its short term obligations.
The Current ratio of SOL (2.18) is better than 70.15% of its industry peers.
A Quick Ratio of 1.92 indicates that SOL should not have too much problems paying its short term obligations.
SOL's Quick ratio of 1.92 is amongst the best of the industry. SOL outperforms 85.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
SOL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.31%.
The Earnings Per Share has been growing by 24.51% on average over the past years. This is a very strong growth
SOL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.29%.
The Revenue has been growing by 12.23% on average over the past years. This is quite good.
EPS 1Y (TTM)1.31%
EPS 3Y18.14%
EPS 5Y24.51%
EPS Q2Q%9.98%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%10.58%
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 8.55% yearly.
SOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y10.98%
EPS Next 2Y9.63%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue Next Year7.64%
Revenue Next 2Y7.25%
Revenue Next 3Y7.12%
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
The Price/Earnings ratio is 29.08, which means the current valuation is very expensive for SOL.
SOL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SOL to the average of the S&P500 Index (27.51), we can say SOL is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 25.10, the valuation of SOL can be described as expensive.
SOL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SOL is more expensive than 61.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. SOL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 25.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOL is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.63 | ||
| EV/EBITDA | 12.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.65
PEG (5Y)1.19
EPS Next 2Y9.63%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, SOL is not a good candidate for dividend investing.
SOL's Dividend Yield is slightly below the industry average, which is at 2.99.
With a Dividend Yield of 0.80, SOL pays less dividend than the S&P500 average, which is at 2.35.
| 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 25.58% of its income as dividend. This is a sustainable payout ratio.
SOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.58%
EPS Next 2Y9.63%
EPS Next 3Y8.55%
BIT:SOL (7/15/2025, 5:35:15 PM)
47.4
-0.4 (-0.84%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners19.42%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.30B
Analysts83.33
Price Target48.45 (2.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend0.42
Dividend Growth(5Y)16.74%
DP25.58%
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)9.2%
PT rev (3m)13.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 25.1 | ||
| P/S | 2.67 | ||
| P/FCF | 90.63 | ||
| P/OCF | 14.45 | ||
| P/B | 4.18 | ||
| P/tB | 6.03 | ||
| EV/EBITDA | 12.54 |
EPS(TTM)1.63
EY3.44%
EPS(NY)1.89
Fwd EY3.98%
FCF(TTM)0.52
FCFY1.1%
OCF(TTM)3.28
OCFY6.92%
SpS17.76
BVpS11.33
TBVpS7.86
PEG (NY)2.65
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.91% | ||
| ROE | 14.37% | ||
| ROCE | 13.75% | ||
| ROIC | 9.55% | ||
| ROICexc | 9.66% | ||
| ROICexgc | 11.75% | ||
| OM | 14.67% | ||
| PM (TTM) | 9.17% | ||
| GM | 74.97% | ||
| FCFM | 2.95% |
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%
ROICexcg growth 3Y7.2%
ROICexcg 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-Score5
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.66 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 159.8% | ||
| Cap/Sales | 15.53% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 75.74% | ||
| Profit Quality | 32.12% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 4.34 |
F-Score5
WACC8.31%
ROIC/WACC1.15
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)1.31%
EPS 3Y18.14%
EPS 5Y24.51%
EPS Q2Q%9.98%
EPS Next Y10.98%
EPS Next 2Y9.63%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue 1Y (TTM)8.29%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%10.58%
Revenue Next Year7.64%
Revenue Next 2Y7.25%
Revenue Next 3Y7.12%
Revenue Next 5Y5.14%
EBIT growth 1Y3.69%
EBIT growth 3Y20.6%
EBIT growth 5Y19.23%
EBIT Next Year39.24%
EBIT Next 3Y16.87%
EBIT Next 5YN/A
FCF growth 1Y-27.14%
FCF growth 3Y1.91%
FCF growth 5Y18.79%
OCF growth 1Y10.16%
OCF growth 3Y15.6%
OCF growth 5Y9.8%