SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:SOLB - BE0003470755 - Common Stock
27.02 EUR
+0.18 (+0.67%)
Taking everything into account, SOLB scores 5 out of 10 in our fundamental rating. SOLB was compared to 75 industry peers in the Chemicals industry. While SOLB is still in line with the averages on profitability rating, there are concerns on its financial health. SOLB is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SOLB was profitable.
SOLB had a positive operating cash flow in the past year.
Of the past 5 years SOLB 4 years were profitable.
Each year in the past 5 years SOLB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SOLB (2.43%) is comparable to the rest of the industry.
The Return On Equity of SOLB (12.80%) is better than 70.67% of its industry peers.
SOLB has a better Return On Invested Capital (8.54%) than 73.33% of its industry peers.
SOLB had an Average Return On Invested Capital over the past 3 years of 11.19%. This is above the industry average of 7.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 12.8% | ||
| ROIC | 8.54% |
ROA(3y)13.55%
ROA(5y)7.71%
ROE(3y)64.09%
ROE(5y)37.45%
ROIC(3y)11.19%
ROIC(5y)8.96%
1.3 Margins
SOLB has a Profit Margin (3.14%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SOLB has grown nicely.
SOLB's Operating Margin of 11.07% is fine compared to the rest of the industry. SOLB outperforms 73.33% of its industry peers.
In the last couple of years the Operating Margin of SOLB has grown nicely.
SOLB's Gross Margin of 21.24% is on the low side compared to the rest of the industry. SOLB is outperformed by 68.00% of its industry peers.
In the last couple of years the Gross Margin of SOLB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.07% | ||
| PM (TTM) | 3.14% | ||
| GM | 21.24% |
OM growth 3Y5%
OM growth 5Y4.03%
PM growth 3Y-17.12%
PM growth 5Y176.86%
GM growth 3Y-4.43%
GM growth 5Y-3.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SOLB is creating value.
The number of shares outstanding for SOLB has been reduced compared to 1 year ago.
SOLB has more shares outstanding than it did 5 years ago.
SOLB has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that SOLB is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.69, SOLB is doing worse than 77.33% of the companies in the same industry.
The Debt to FCF ratio of SOLB is 7.54, which is on the high side as it means it would take SOLB, 7.54 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.54, SOLB is doing good in the industry, outperforming 62.67% of the companies in the same industry.
SOLB has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
SOLB has a Debt to Equity ratio of 1.70. This is amonst the worse of the industry: SOLB underperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.43
WACC5.97%
2.3 Liquidity
SOLB has a Current Ratio of 1.41. This is a normal value and indicates that SOLB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SOLB (1.41) is worse than 66.67% of its industry peers.
SOLB has a Quick Ratio of 1.04. This is a normal value and indicates that SOLB is financially healthy and should not expect problems in meeting its short term obligations.
SOLB has a Quick ratio (1.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
SOLB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -93.11%.
Measured over the past years, SOLB shows a very strong growth in Earnings Per Share. The EPS has been growing by 153.65% on average per year.
The Revenue for SOLB has decreased by -50.46% in the past year. This is quite bad
Measured over the past years, SOLB shows a very negative growth in Revenue. The Revenue has been decreasing by -14.50% on average per year.
EPS 1Y (TTM)-93.11%
EPS 3Y-37.03%
EPS 5Y153.65%
EPS Q2Q%-16.16%
Revenue 1Y (TTM)-50.46%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-9.69%
3.2 Future
SOLB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.30% yearly.
The Revenue is expected to grow by 0.16% on average over the next years.
EPS Next Y-20.05%
EPS Next 2Y-11.82%
EPS Next 3Y-4.04%
EPS Next 5Y-2.3%
Revenue Next Year-5.88%
Revenue Next 2Y-2.31%
Revenue Next 3Y-0.65%
Revenue Next 5Y0.16%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.40 indicates a rather cheap valuation of SOLB.
Based on the Price/Earnings ratio, SOLB is valued cheaply inside the industry as 97.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SOLB to the average of the S&P500 Index (26.57), we can say SOLB is valued rather cheaply.
A Price/Forward Earnings ratio of 8.50 indicates a reasonable valuation of SOLB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 96.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SOLB to the average of the S&P500 Index (24.04), we can say SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 8.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 86.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SOLB is valued cheaper than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.76 | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
The decent profitability rating of SOLB may justify a higher PE ratio.
A cheap valuation may be justified as SOLB's earnings are expected to decrease with -4.04% in the coming years.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-11.82%
EPS Next 3Y-4.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.35%, SOLB is a good candidate for dividend investing.
SOLB's Dividend Yield is rather good when compared to the industry average which is at 2.58. SOLB pays more dividend than 92.00% of the companies in the same industry.
SOLB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
5.2 History
The dividend of SOLB decreases each year by -9.89%.
Dividend Growth(5Y)-9.89%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
164.94% of the earnings are spent on dividend by SOLB. This is not a sustainable payout ratio.
SOLB's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP164.94%
EPS Next 2Y-11.82%
EPS Next 3Y-4.04%
EBR:SOLB (12/24/2025, 7:00:00 PM)
27.02
+0.18 (+0.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners28.27%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.86B
Revenue(TTM)4.91B
Net Income(TTM)154.00M
Analysts53.6
Price Target28.22 (4.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
Yearly Dividend2.45
Dividend Growth(5Y)-9.89%
DP164.94%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.12%
Min EPS beat(2)9%
Max EPS beat(2)31.25%
EPS beat(4)3
Avg EPS beat(4)12.33%
Min EPS beat(4)-1.96%
Max EPS beat(4)31.25%
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)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-2.19%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)-0.57%
Revenue beat(8)2
Avg Revenue beat(8)-0.66%
Revenue beat(12)5
Avg Revenue beat(12)2.07%
Revenue beat(16)9
Avg Revenue beat(16)7.99%
PT rev (1m)-5.57%
PT rev (3m)-8.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.54%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)1.81%
Revenue NQ rev (3m)2.39%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 8.5 | ||
| P/S | 0.58 | ||
| P/FCF | 9.76 | ||
| P/OCF | 4.8 | ||
| P/B | 2.38 | ||
| P/tB | 12.66 | ||
| EV/EBITDA | 5.59 |
EPS(TTM)3.65
EY13.51%
EPS(NY)3.18
Fwd EY11.77%
FCF(TTM)2.77
FCFY10.24%
OCF(TTM)5.63
OCFY20.83%
SpS46.33
BVpS11.36
TBVpS2.13
PEG (NY)N/A
PEG (5Y)0.05
Graham Number30.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 12.8% | ||
| ROCE | 11.39% | ||
| ROIC | 8.54% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 10.74% | ||
| OM | 11.07% | ||
| PM (TTM) | 3.14% | ||
| GM | 21.24% | ||
| FCFM | 5.97% |
ROA(3y)13.55%
ROA(5y)7.71%
ROE(3y)64.09%
ROE(5y)37.45%
ROIC(3y)11.19%
ROIC(5y)8.96%
ROICexc(3y)12.43%
ROICexc(5y)9.87%
ROICexgc(3y)17.2%
ROICexgc(5y)14.4%
ROCE(3y)14.91%
ROCE(5y)11.94%
ROICexgc growth 3Y8.77%
ROICexgc growth 5Y9.63%
ROICexc growth 3Y18.23%
ROICexc growth 5Y16.44%
OM growth 3Y5%
OM growth 5Y4.03%
PM growth 3Y-17.12%
PM growth 5Y176.86%
GM growth 3Y-4.43%
GM growth 5Y-3.41%
F-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 7.54 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 83.47% | ||
| Cap/Sales | 6.18% | ||
| Interest Coverage | 7.76 | ||
| Cash Conversion | 65.78% | ||
| Profit Quality | 190.26% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.69 |
F-Score5
WACC5.97%
ROIC/WACC1.43
Cap/Depr(3y)94.75%
Cap/Depr(5y)76.26%
Cap/Sales(3y)9.62%
Cap/Sales(5y)7.99%
Profit Quality(3y)83.5%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-93.11%
EPS 3Y-37.03%
EPS 5Y153.65%
EPS Q2Q%-16.16%
EPS Next Y-20.05%
EPS Next 2Y-11.82%
EPS Next 3Y-4.04%
EPS Next 5Y-2.3%
Revenue 1Y (TTM)-50.46%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-9.69%
Revenue Next Year-5.88%
Revenue Next 2Y-2.31%
Revenue Next 3Y-0.65%
Revenue Next 5Y0.16%
EBIT growth 1Y-58.33%
EBIT growth 3Y-19.61%
EBIT growth 5Y-11.06%
EBIT Next Year21.6%
EBIT Next 3Y9.96%
EBIT Next 5Y6.12%
FCF growth 1Y-75.88%
FCF growth 3Y-27.42%
FCF growth 5Y-19.2%
OCF growth 1Y-74.87%
OCF growth 3Y-25.69%
OCF growth 5Y-19.46%
SOLVAY SA / SOLB.BR FAQ
What is the ChartMill fundamental rating of SOLVAY SA (SOLB.BR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SOLB.BR.
Can you provide the valuation status for SOLVAY SA?
ChartMill assigns a valuation rating of 8 / 10 to SOLVAY SA (SOLB.BR). This can be considered as Undervalued.
What is the profitability of SOLB stock?
SOLVAY SA (SOLB.BR) has a profitability rating of 6 / 10.
What is the earnings growth outlook for SOLVAY SA?
The Earnings per Share (EPS) of SOLVAY SA (SOLB.BR) is expected to decline by -20.05% in the next year.
How sustainable is the dividend of SOLVAY SA (SOLB.BR) stock?
The dividend rating of SOLVAY SA (SOLB.BR) is 5 / 10 and the dividend payout ratio is 164.94%.