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. While SOL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SOL is not valued too expensively and it also shows a decent growth rate.
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
SOL has a Return On Assets of 6.87%. This is amongst the best in the industry. SOL outperforms 82.54% of its industry peers.
With an excellent Return On Equity value of 14.59%, SOL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.22%, SOL belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
SOL had an Average Return On Invested Capital over the past 3 years of 9.69%. This is above the industry average of 6.72%.
The last Return On Invested Capital (10.22%) for SOL is above the 3 year average (9.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 14.59% | ||
| ROIC | 10.22% |
ROA(3y)7.16%
ROA(5y)6.54%
ROE(3y)14.94%
ROE(5y)13.96%
ROIC(3y)9.69%
ROIC(5y)9.02%
1.3 Margins
With an excellent Profit Margin value of 9.21%, SOL belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
SOL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.10%, SOL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of SOL has grown nicely.
SOL has a better Gross Margin (74.67%) than 98.41% 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 3Y2.31%
OM growth 5Y6.98%
PM growth 3Y-2.53%
PM growth 5Y9.5%
GM growth 3Y-2.29%
GM growth 5Y-1.18%
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 about the same amout of shares outstanding than it did 1 year ago.
SOL has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SOL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.84 indicates that SOL is not in any danger for bankruptcy at the moment.
SOL has a better Altman-Z score (3.84) than 84.13% 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.
The Debt to FCF ratio of SOL (9.11) is better than 65.08% 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 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 9.11 | ||
| Altman-Z | 3.84 |
ROIC/WACC1.28
WACC7.99%
2.3 Liquidity
SOL has a Current Ratio of 2.09. This indicates that SOL is financially healthy and has no problem in meeting its short term obligations.
SOL's Current ratio of 2.09 is fine compared to the rest of the industry. SOL outperforms 69.84% of its industry peers.
SOL has a Quick Ratio of 1.83. This is a normal value and indicates that SOL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SOL (1.83) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The earnings per share for SOL have decreased by -5.10% in the last year.
Measured over the past years, SOL shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.95% on average per year.
Looking at the last year, SOL shows a small growth in Revenue. The Revenue has grown by 5.10% in the last year.
The Revenue has been growing by 12.28% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.1%
EPS 3Y12.26%
EPS 5Y22.95%
EPS Q2Q%-5.9%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y15.16%
Revenue growth 5Y12.28%
Sales Q2Q%5.96%
3.2 Future
Based on estimates for the next years, SOL will show a small growth in Earnings Per Share. The EPS will grow by 7.91% on average per year.
Based on estimates for the next years, SOL will show a small growth in Revenue. The Revenue will grow by 6.70% on average per year.
EPS Next Y48.15%
EPS Next 2Y26.56%
EPS Next 3Y19.58%
EPS Next 5Y7.91%
Revenue Next Year9.88%
Revenue Next 2Y8.32%
Revenue Next 3Y7.66%
Revenue Next 5Y6.7%
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
A Price/Earnings ratio of 23.91 indicates a rather expensive valuation of SOL.
Based on the Price/Earnings ratio, SOL is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, SOL is valued at the same level.
Based on the Price/Forward Earnings ratio of 14.23, the valuation of SOL can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOL indicates a somewhat cheap valuation: SOL is cheaper than 71.43% of the companies listed in the same industry.
SOL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.91 | ||
| Fwd PE | 14.23 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than SOL, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.69 | ||
| EV/EBITDA | 9.79 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SOL has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SOL's earnings are expected to grow with 19.58% in the coming years.
PEG (NY)0.5
PEG (5Y)1.04
EPS Next 2Y26.56%
EPS Next 3Y19.58%
5. Dividend
5.1 Amount
SOL has a Yearly Dividend Yield of 1.01%.
Compared to an average industry Dividend Yield of 2.89, SOL is paying slightly less dividend.
With a Dividend Yield of 1.01, SOL pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of SOL is nicely growing with an annual growth rate of 17.52%!
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 2Y26.56%
EPS Next 3Y19.58%
BIT:SOL (3/7/2025, 5:35:30 PM)
37.3
+0.55 (+1.5%)
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 Cap3.38B
Analysts83.33
Price Target42.84 (14.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)10.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)42.86%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.91 | ||
| Fwd PE | 14.23 | ||
| P/S | 2.21 | ||
| P/FCF | 46.69 | ||
| P/OCF | 11.41 | ||
| P/B | 3.5 | ||
| P/tB | 5.06 | ||
| EV/EBITDA | 9.79 |
EPS(TTM)1.56
EY4.18%
EPS(NY)2.62
Fwd EY7.03%
FCF(TTM)0.8
FCFY2.14%
OCF(TTM)3.27
OCFY8.77%
SpS16.88
BVpS10.66
TBVpS7.37
PEG (NY)0.5
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 14.59% | ||
| ROCE | 14.19% | ||
| ROIC | 10.22% | ||
| ROICexc | 11.83% | ||
| ROICexgc | 14.88% | ||
| OM | 15.1% | ||
| PM (TTM) | 9.21% | ||
| GM | 74.67% | ||
| FCFM | 4.73% |
ROA(3y)7.16%
ROA(5y)6.54%
ROE(3y)14.94%
ROE(5y)13.96%
ROIC(3y)9.69%
ROIC(5y)9.02%
ROICexc(3y)11.02%
ROICexc(5y)10.67%
ROICexgc(3y)13.69%
ROICexgc(5y)13.15%
ROCE(3y)13.59%
ROCE(5y)12.57%
ROICexcg growth 3Y3.35%
ROICexcg growth 5Y7.88%
ROICexc growth 3Y2.03%
ROICexc growth 5Y6.41%
OM growth 3Y2.31%
OM growth 5Y6.98%
PM growth 3Y-2.53%
PM growth 5Y9.5%
GM growth 3Y-2.29%
GM growth 5Y-1.18%
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 | 3.84 |
F-Score5
WACC7.99%
ROIC/WACC1.28
Cap/Depr(3y)130.14%
Cap/Depr(5y)134.49%
Cap/Sales(3y)12.91%
Cap/Sales(5y)14.26%
Profit Quality(3y)43.85%
Profit Quality(5y)48.43%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.1%
EPS 3Y12.26%
EPS 5Y22.95%
EPS Q2Q%-5.9%
EPS Next Y48.15%
EPS Next 2Y26.56%
EPS Next 3Y19.58%
EPS Next 5Y7.91%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y15.16%
Revenue growth 5Y12.28%
Sales Q2Q%5.96%
Revenue Next Year9.88%
Revenue Next 2Y8.32%
Revenue Next 3Y7.66%
Revenue Next 5Y6.7%
EBIT growth 1Y6.1%
EBIT growth 3Y17.81%
EBIT growth 5Y20.11%
EBIT Next Year90.43%
EBIT Next 3Y28.61%
EBIT Next 5Y24.32%
FCF growth 1Y216.39%
FCF growth 3Y-3.36%
FCF growth 5Y14.32%
OCF growth 1Y71.22%
OCF growth 3Y8.72%
OCF growth 5Y15.29%