SOL SPA (SOL.MI) Stock Fundamental Analysis
BIT:SOL - Euronext Milan - IT0001206769 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to SOL. SOL was compared to 61 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.
In the past 5 years SOL has always been profitable.
Of the past 5 years SOL 4 years had a positive operating cash flow.
1.2 Ratios
SOL's Return On Assets of 6.87% is amongst the best of the industry. SOL outperforms 80.33% of its industry peers.
SOL has a Return On Equity of 14.59%. This is amongst the best in the industry. SOL outperforms 83.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.90%, SOL belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 14.59% | ||
| ROIC | 9.9% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SOL has a Profit Margin of 9.21%. This is in the better half of the industry: SOL outperforms 77.05% of its industry peers.
In the last couple of years the Profit Margin of SOL has grown nicely.
SOL has a better Operating Margin (15.10%) than 85.25% of its industry peers.
SOL's Operating Margin has improved in the last couple of years.
The Gross Margin of SOL (74.67%) is better than 98.36% of its industry peers.
SOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.1% | ||
| PM (TTM) | 9.21% | ||
| GM | 74.67% |
OM growth 3Y6.76%
OM growth 5Y6.31%
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.
SOL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SOL has an Altman-Z score of 3.85. This indicates that SOL is financially healthy and has little risk of bankruptcy at the moment.
SOL has a Altman-Z score of 3.85. This is amongst the best in the industry. SOL outperforms 81.97% of its industry peers.
SOL has a debt to FCF ratio of 9.11. This is a negative value and a sign of low solvency as SOL would need 9.11 years to pay back of all of its debts.
SOL's Debt to FCF ratio of 9.11 is fine compared to the rest of the industry. SOL outperforms 62.30% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that SOL is somewhat dependend on debt financing.
The Debt to Equity ratio of SOL (0.65) is worse than 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 3.85 |
ROIC/WACC1.21
WACC8.17%
2.3 Liquidity
A Current Ratio of 2.09 indicates that SOL has no problem at all paying its short term obligations.
SOL has a better Current ratio (2.09) than 68.85% of its industry peers.
A Quick Ratio of 1.83 indicates that SOL should not have too much problems paying its short term obligations.
The Quick ratio of SOL (1.83) is better than 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
SOL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.33%.
The Earnings Per Share has been growing by 24.52% 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%.
Measured over the past years, SOL shows a quite strong growth in Revenue. The Revenue has been growing by 12.23% on average per year.
EPS 1Y (TTM)1.33%
EPS 3Y18.15%
EPS 5Y24.52%
EPS Q2Q%10.04%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%10.58%
3.2 Future
Based on estimates for the next years, SOL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.55% on average per year.
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 Y10.98%
EPS Next 2Y9.63%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue Next Year6.78%
Revenue Next 2Y6.56%
Revenue Next 3Y7.92%
Revenue Next 5Y5.14%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.91, which indicates a rather expensive current valuation of SOL.
SOL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.64, SOL is valued at the same level.
A Price/Forward Earnings ratio of 19.78 indicates a rather expensive valuation of SOL.
SOL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.44. SOL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 19.78 |
4.2 Price Multiples
SOL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SOL is cheaper than 62.30% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.75 | ||
| EV/EBITDA | 9.83 |
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.
SOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.09
PEG (5Y)0.93
EPS Next 2Y9.63%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, SOL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.25, SOL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.52, SOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
On average, the dividend of SOL grows each year by 17.52%, which is quite nice.
Dividend Growth(5Y)17.52%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
26.83% 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.
DP26.83%
EPS Next 2Y9.63%
EPS Next 3Y8.55%
BIT:SOL (4/24/2025, 5:35:30 PM)
37.35
-0.15 (-0.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners21.09%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.39B
Analysts83.33
Price Target42.84 (14.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend0.37
Dividend Growth(5Y)17.52%
DP26.83%
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)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-27.94%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-29.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 19.78 | ||
| P/S | 2.21 | ||
| P/FCF | 46.75 | ||
| P/OCF | 11.42 | ||
| P/B | 3.5 | ||
| P/tB | 5.07 | ||
| EV/EBITDA | 9.83 |
EPS(TTM)1.63
EY4.36%
EPS(NY)1.89
Fwd EY5.06%
FCF(TTM)0.8
FCFY2.14%
OCF(TTM)3.27
OCFY8.76%
SpS16.88
BVpS10.66
TBVpS7.37
PEG (NY)2.09
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 14.59% | ||
| ROCE | 14.19% | ||
| ROIC | 9.9% | ||
| ROICexc | 11.46% | ||
| ROICexgc | 14.42% | ||
| OM | 15.1% | ||
| PM (TTM) | 9.21% | ||
| GM | 74.67% | ||
| FCFM | 4.73% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y6.76%
OM growth 5Y6.31%
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 | 0.65 | ||
| Debt/FCF | 9.11 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 148.71% | ||
| Cap/Sales | 14.64% | ||
| Interest Coverage | 4.57 | ||
| Cash Conversion | 77.66% | ||
| Profit Quality | 51.38% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 3.85 |
F-Score5
WACC8.17%
ROIC/WACC1.21
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.33%
EPS 3Y18.15%
EPS 5Y24.52%
EPS Q2Q%10.04%
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 Year6.78%
Revenue Next 2Y6.56%
Revenue Next 3Y7.92%
Revenue Next 5Y5.14%
EBIT growth 1Y6.1%
EBIT growth 3Y20.75%
EBIT growth 5Y19.32%
EBIT Next Year76.04%
EBIT Next 3Y26.37%
EBIT Next 5YN/A
FCF growth 1Y-13.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.4%
OCF growth 3YN/A
OCF growth 5YN/A