SOL SPA (SOL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:SOL - IT0001206769 - Common Stock
49.75 EUR
-0.25 (-0.5%)
Taking everything into account, SOL scores 6 out of 10 in our fundamental rating. SOL was compared to 74 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. While showing a medium growth rate, SOL is valued expensive at the moment.
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.
SOL had positive earnings in each of the past 5 years.
In the past 5 years SOL always reported a positive cash flow from operatings.
1.2 Ratios
SOL has a Return On Assets of 6.90%. This is amongst the best in the industry. SOL outperforms 81.08% of its industry peers.
The Return On Equity of SOL (14.75%) is better than 86.49% of its industry peers.
SOL's Return On Invested Capital of 9.43% is amongst the best of the industry. SOL outperforms 81.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOL is above the industry average of 6.48%.
| 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
Looking at the Profit Margin, with a value of 9.17%, SOL is in the better half of the industry, outperforming 79.73% of the companies in the same industry.
In the last couple of years the Profit Margin of SOL has grown nicely.
With an excellent Operating Margin value of 14.58%, SOL belongs to the best of the industry, outperforming 82.43% of the companies in the same industry.
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 98.65% of the companies in the same industry.
In the last couple of years the Gross Margin of SOL has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SOL is creating some value.
Compared to 1 year ago, SOL has about the same amount of shares outstanding.
Compared to 5 years ago, SOL has about the same amount of shares outstanding.
The debt/assets ratio for SOL has been reduced compared to a year ago.
2.2 Solvency
SOL has an Altman-Z score of 4.25. This indicates that SOL is financially healthy and has little risk of bankruptcy at the moment.
SOL has a better Altman-Z score (4.25) than 83.78% of its industry peers.
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 Debt to Equity ratio of 0.70. This is in the lower half of the industry: SOL underperforms 66.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.25 |
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.
Looking at the Current ratio, with a value of 2.29, SOL is in the better half of the industry, outperforming 74.32% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 2.04, SOL belongs to the top of the industry, outperforming 86.49% 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.
The Revenue has grown by 11.37% in the past year. This is quite good.
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 8.84% 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 2Y9.92%
EPS Next 3Y8.84%
EPS Next 5YN/A
Revenue Next Year10.91%
Revenue Next 2Y8.99%
Revenue Next 3Y8.39%
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.
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
A Price/Earnings ratio of 28.92 indicates a quite expensive valuation of SOL.
The rest of the industry has a similar Price/Earnings ratio as SOL.
When comparing the Price/Earnings ratio of SOL to the average of the S&P500 Index (26.15), we can say SOL is valued inline with the index average.
The Price/Forward Earnings ratio is 24.19, which indicates a rather expensive current valuation of SOL.
Based on the Price/Forward Earnings ratio, SOL is valued a bit more expensive than 62.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. SOL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 24.19 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.07 |
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)2.95
PEG (5Y)1.18
EPS Next 2Y9.92%
EPS Next 3Y8.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, SOL is not a good candidate for dividend investing.
SOL's Dividend Yield is slightly below the industry average, which is at 3.18.
With a Dividend Yield of 0.81, SOL pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
The dividend of SOL is nicely growing with an annual growth rate of 16.74%!
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 2Y9.92%
EPS Next 3Y8.84%
BIT:SOL (11/28/2025, 5:05:44 PM)
49.75
-0.25 (-0.5%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners21.03%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.51B
Revenue(TTM)1.70B
Net Income(TTM)156.30M
Analysts77.78
Price Target54.75 (10.05%)
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)2.79%
PT rev (3m)5.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 24.19 | ||
| P/S | 2.65 | ||
| P/FCF | N/A | ||
| P/OCF | 18.17 | ||
| P/B | 4.26 | ||
| P/tB | 6.08 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)1.72
EY3.46%
EPS(NY)2.06
Fwd EY4.13%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)2.74
OCFY5.5%
SpS18.8
BVpS11.68
TBVpS8.18
PEG (NY)2.95
PEG (5Y)1.18
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 | 4.25 |
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 2Y9.92%
EPS Next 3Y8.84%
EPS Next 5YN/A
Revenue 1Y (TTM)11.37%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%12.12%
Revenue Next Year10.91%
Revenue Next 2Y8.99%
Revenue Next 3Y8.39%
Revenue Next 5Y5.14%
EBIT growth 1Y7.54%
EBIT growth 3Y20.6%
EBIT growth 5Y19.23%
EBIT Next Year42.88%
EBIT Next 3Y17.9%
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%.