SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
EBR:SOLB - Euronext Brussels - BE0003470755 - Common Stock - Currency: EUR
Overall SOLB gets a fundamental rating of 5 out of 10. We evaluated SOLB against 60 industry peers in the Chemicals industry. SOLB scores excellent on profitability, but there are concerns on its financial health. SOLB is valued quite cheap, but it does not seem to be growing. SOLB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SOLB had positive earnings in the past year.
SOLB had a positive operating cash flow in the past year.
SOLB had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SOLB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SOLB (33.59%) is better than 100.00% of its industry peers.
SOLB has a Return On Equity of 173.38%. This is amongst the best in the industry. SOLB outperforms 100.00% of its industry peers.
SOLB has a better Return On Invested Capital (20.32%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOLB is above the industry average of 6.58%.
The last Return On Invested Capital (20.32%) for SOLB is above the 3 year average (9.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.59% | ||
| ROE | 173.38% | ||
| ROIC | 20.32% |
ROA(3y)13.89%
ROA(5y)7.05%
ROE(3y)61.87%
ROE(5y)34.13%
ROIC(3y)9.92%
ROIC(5y)7.92%
1.3 Margins
SOLB has a Profit Margin of 22.17%. This is amongst the best in the industry. SOLB outperforms 96.49% of its industry peers.
In the last couple of years the Profit Margin of SOLB has grown nicely.
SOLB has a better Operating Margin (13.16%) than 82.46% of its industry peers.
In the last couple of years the Operating Margin of SOLB has grown nicely.
Looking at the Gross Margin, with a value of 22.80%, SOLB is doing worse than 64.91% of the companies in the same industry.
SOLB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.16% | ||
| PM (TTM) | 22.17% | ||
| GM | 22.8% |
OM growth 3Y16.3%
OM growth 5Y4.99%
PM growth 3YN/A
PM growth 5Y37.42%
GM growth 3Y-3.85%
GM growth 5Y-3.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SOLB is creating value.
Compared to 1 year ago, SOLB has more shares outstanding
Compared to 5 years ago, SOLB has more shares outstanding
SOLB has a worse debt/assets ratio than last year.
2.2 Solvency
SOLB has an Altman-Z score of 3.02. This indicates that SOLB is financially healthy and has little risk of bankruptcy at the moment.
SOLB has a Altman-Z score of 3.02. This is in the better half of the industry: SOLB outperforms 75.44% of its industry peers.
SOLB has a debt to FCF ratio of 15.22. This is a negative value and a sign of low solvency as SOLB would need 15.22 years to pay back of all of its debts.
SOLB's Debt to FCF ratio of 15.22 is in line compared to the rest of the industry. SOLB outperforms 52.63% of its industry peers.
SOLB has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.57, SOLB is not doing good in the industry: 92.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 15.22 | ||
| Altman-Z | 3.02 |
ROIC/WACC4.06
WACC5%
2.3 Liquidity
A Current Ratio of 1.37 indicates that SOLB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.37, SOLB is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
A Quick Ratio of 1.02 indicates that SOLB should not have too much problems paying its short term obligations.
SOLB has a worse Quick ratio (1.02) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for SOLB have decreased strongly by -27.78% in the last year.
Measured over the past 5 years, SOLB shows a small growth in Earnings Per Share. The EPS has been growing by 4.50% on average per year.
SOLB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.28%.
SOLB shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.82% yearly.
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y4.5%
EPS Q2Q%-69.72%
Revenue 1Y (TTM)-29.28%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%-57.92%
3.2 Future
Based on estimates for the next years, SOLB will show a very negative growth in Earnings Per Share. The EPS will decrease by -16.91% on average per year.
Based on estimates for the next years, SOLB will show a decrease in Revenue. The Revenue will decrease by -0.06% on average per year.
EPS Next Y-67%
EPS Next 2Y-42.05%
EPS Next 3Y-28.22%
EPS Next 5Y-16.91%
Revenue Next Year-6.11%
Revenue Next 2Y-1.81%
Revenue Next 3Y-0.12%
Revenue Next 5Y-0.06%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SOLB is valuated cheaply with a Price/Earnings ratio of 2.44.
SOLB's Price/Earnings ratio is rather cheap when compared to the industry. SOLB is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of SOLB to the average of the S&P500 Index (28.47), we can say SOLB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.26, the valuation of SOLB can be described as very cheap.
Based on the Price/Forward Earnings ratio, SOLB is valued cheaper than 98.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SOLB to the average of the S&P500 Index (92.74), we can say SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.44 | ||
| Fwd PE | 7.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLB is valued cheaply inside the industry as 98.25% of the companies are valued more expensively.
SOLB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOLB is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.81 | ||
| EV/EBITDA | 2.51 |
4.3 Compensation for Growth
The excellent 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 -28.22% in the coming years.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-42.05%
EPS Next 3Y-28.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.73%, SOLB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.94, SOLB pays a better dividend. On top of this SOLB pays more dividend than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SOLB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
5.2 History
The dividend of SOLB decreases each year by -0.17%.
Dividend Growth(5Y)-0.17%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
11.21% of the earnings are spent on dividend by SOLB. This is a low number and sustainable payout ratio.
The Dividend Rate of SOLB has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP11.21%
EPS Next 2Y-42.05%
EPS Next 3Y-28.22%
SOLVAY SA
EBR:SOLB (2/4/2025, 7:00:00 PM)
29.46
+0.46 (+1.59%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners29.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.12B
Analysts68.33
Price Target34.74 (17.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
Yearly Dividend3.95
Dividend Growth(5Y)-0.17%
DP11.21%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.93%
Min EPS beat(2)2.99%
Max EPS beat(2)22.86%
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)0
Avg Revenue beat(2)-3.13%
Min Revenue beat(2)-3.26%
Max Revenue beat(2)-3.01%
Revenue beat(4)2
Avg Revenue beat(4)0.87%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)6.48%
Revenue beat(8)5
Avg Revenue beat(8)4.2%
Revenue beat(12)9
Avg Revenue beat(12)11.38%
Revenue beat(16)13
Avg Revenue beat(16)11.53%
PT rev (1m)-0.91%
PT rev (3m)6.45%
EPS NQ rev (1m)14.63%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.61%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.44 | ||
| Fwd PE | 7.26 | ||
| P/S | 0.32 | ||
| P/FCF | 21.81 | ||
| P/OCF | 5.05 | ||
| P/B | 2.46 | ||
| P/tB | 11.55 | ||
| EV/EBITDA | 2.51 |
EPS(TTM)12.09
EY41.04%
EPS(NY)4.06
Fwd EY13.78%
FCF(TTM)1.35
FCFY4.58%
OCF(TTM)5.84
OCFY19.81%
SpS93.51
BVpS11.96
TBVpS2.55
PEG (NY)N/A
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.59% | ||
| ROE | 173.38% | ||
| ROCE | 27.09% | ||
| ROIC | 20.32% | ||
| ROICexc | 22.97% | ||
| ROICexgc | 30% | ||
| OM | 13.16% | ||
| PM (TTM) | 22.17% | ||
| GM | 22.8% | ||
| FCFM | 1.44% |
ROA(3y)13.89%
ROA(5y)7.05%
ROE(3y)61.87%
ROE(5y)34.13%
ROIC(3y)9.92%
ROIC(5y)7.92%
ROICexc(3y)10.89%
ROICexc(5y)8.62%
ROICexgc(3y)16.07%
ROICexgc(5y)13.27%
ROCE(3y)13.23%
ROCE(5y)10.56%
ROICexcg growth 3Y31.28%
ROICexcg growth 5Y13.19%
ROICexc growth 3Y44.07%
ROICexc growth 5Y22.18%
OM growth 3Y16.3%
OM growth 5Y4.99%
PM growth 3YN/A
PM growth 5Y37.42%
GM growth 3Y-3.85%
GM growth 5Y-3.11%
F-Score6
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 15.22 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 83.77% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 217.17 | ||
| Cash Conversion | 33.05% | ||
| Profit Quality | 6.51% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 3.02 |
F-Score6
WACC5%
ROIC/WACC4.06
Cap/Depr(3y)93.48%
Cap/Depr(5y)69.51%
Cap/Sales(3y)9.63%
Cap/Sales(5y)8.4%
Profit Quality(3y)67.12%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y4.5%
EPS Q2Q%-69.72%
EPS Next Y-67%
EPS Next 2Y-42.05%
EPS Next 3Y-28.22%
EPS Next 5Y-16.91%
Revenue 1Y (TTM)-29.28%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%-57.92%
Revenue Next Year-6.11%
Revenue Next 2Y-1.81%
Revenue Next 3Y-0.12%
Revenue Next 5Y-0.06%
EBIT growth 1Y-35.4%
EBIT growth 3Y-0.82%
EBIT growth 5Y-7.42%
EBIT Next Year5.23%
EBIT Next 3Y4.59%
EBIT Next 5Y2.27%
FCF growth 1Y-85.67%
FCF growth 3Y6.21%
FCF growth 5Y-0.92%
OCF growth 1Y-65.18%
OCF growth 3Y15.45%
OCF growth 5Y2.13%