SOL SPA (SOL.MI) Stock Fundamental Analysis
Europe - BIT:SOL - IT0001206769 - Common Stock
52.2 EUR
-0.4 (-0.76%)
Taking everything into account, SOL scores 6 out of 10 in our fundamental rating. SOL was compared to 66 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 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.
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
The Return On Assets of SOL (6.91%) is better than 83.33% of its industry peers.
SOL's Return On Equity of 14.37% is amongst the best of the industry. SOL outperforms 84.85% of its industry peers.
SOL's Return On Invested Capital of 9.55% is amongst the best of the industry. SOL outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOL is above the industry average of 6.62%.
| 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 81.82% of its industry peers.
SOL's Profit Margin has improved in the last couple of years.
SOL has a Operating Margin of 14.67%. This is amongst the best in the industry. SOL outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of SOL has grown nicely.
Looking at the Gross Margin, with a value of 74.97%, SOL belongs to the top of the industry, outperforming 98.48% 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 | 14.67% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SOL is still creating some value.
Compared to 1 year ago, SOL has about the same amount of shares outstanding.
SOL has about the same amout of shares outstanding than it did 5 years ago.
SOL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.57 indicates that SOL is not in any danger for bankruptcy at the moment.
The Altman-Z score of SOL (4.57) is better than 87.88% 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.
Looking at the Debt to FCF ratio, with a value of 14.66, SOL is in line with its industry, outperforming 59.09% of the companies in the same industry.
SOL has a Debt/Equity ratio of 0.64. This is a neutral value indicating SOL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, SOL is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.66 | ||
| Altman-Z | 4.57 |
ROIC/WACC1.17
WACC8.19%
2.3 Liquidity
A Current Ratio of 2.18 indicates that SOL has no problem at all paying its short term obligations.
SOL has a Current ratio of 2.18. This is in the better half of the industry: SOL outperforms 65.15% of its industry peers.
SOL has a Quick Ratio of 1.92. 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 (1.92) is better than 83.33% 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%.
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 8.29% in the past year. This is quite good.
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)1.31%
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 8.18% 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 2Y9.13%
EPS Next 3Y8.18%
EPS Next 5YN/A
Revenue Next Year32.29%
Revenue Next 2Y9.22%
Revenue Next 3Y17.26%
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
With a Price/Earnings ratio of 32.02, SOL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as SOL.
SOL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
Based on the Price/Forward Earnings ratio of 27.64, the valuation of SOL can be described as expensive.
Based on the Price/Forward Earnings ratio, SOL is valued a bit more expensive than the industry average as 65.15% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of SOL to the average of the S&P500 Index (22.86), we can say SOL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 27.64 |
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.
SOL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 99.81 | ||
| EV/EBITDA | 13.65 |
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)2.92
PEG (5Y)1.31
EPS Next 2Y9.13%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, SOL is not a good candidate for dividend investing.
SOL's Dividend Yield is slightly below the industry average, which is at 3.04.
With a Dividend Yield of 0.75, SOL pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
25.58% 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.
DP25.58%
EPS Next 2Y9.13%
EPS Next 3Y8.18%
BIT:SOL (9/19/2025, 7:00:00 PM)
52.2
-0.4 (-0.76%)
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 Cap4.73B
Analysts82.86
Price Target53.27 (2.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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)3.08%
PT rev (3m)20.06%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)20.48%
Revenue NY rev (3m)22.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 27.64 | ||
| P/S | 2.94 | ||
| P/FCF | 99.81 | ||
| P/OCF | 15.91 | ||
| P/B | 4.61 | ||
| P/tB | 6.64 | ||
| EV/EBITDA | 13.65 |
EPS(TTM)1.63
EY3.12%
EPS(NY)1.89
Fwd EY3.62%
FCF(TTM)0.52
FCFY1%
OCF(TTM)3.28
OCFY6.28%
SpS17.76
BVpS11.33
TBVpS7.86
PEG (NY)2.92
PEG (5Y)1.31
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 | 4.57 |
F-Score5
WACC8.19%
ROIC/WACC1.17
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 2Y9.13%
EPS Next 3Y8.18%
EPS Next 5YN/A
Revenue 1Y (TTM)8.29%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%10.58%
Revenue Next Year32.29%
Revenue Next 2Y9.22%
Revenue Next 3Y17.26%
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%