SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:SOLB - BE0003470755 - Common Stock
27.5 EUR
-0.36 (-1.29%)
We assign a fundamental rating of 5 out of 10 to SOLB. SOLB was compared to 74 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year SOLB was profitable.
In the past year SOLB had a positive cash flow from operations.
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
SOLB has a better Return On Assets (2.43%) than 62.16% of its industry peers.
Looking at the Return On Equity, with a value of 12.80%, SOLB is in the better half of the industry, outperforming 74.32% of the companies in the same industry.
The Return On Invested Capital of SOLB (8.54%) is better than 77.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOLB is above the industry average of 6.48%.
| 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
The Profit Margin of SOLB (3.14%) is better than 62.16% of its industry peers.
In the last couple of years the Profit Margin of SOLB has grown nicely.
SOLB has a Operating Margin of 11.07%. This is in the better half of the industry: SOLB outperforms 77.03% of its industry peers.
SOLB's Operating Margin has improved in the last couple of years.
The Gross Margin of SOLB (21.24%) is worse than 64.86% of its industry peers.
SOLB's Gross Margin has declined in the last couple of years.
| 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
SOLB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SOLB has been reduced compared to 1 year ago.
The number of shares outstanding for SOLB has been increased compared to 5 years ago.
SOLB has a worse debt/assets ratio than last year.
2.2 Solvency
SOLB has an Altman-Z score of 1.70. This is a bad value and indicates that SOLB is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.70, SOLB is not doing good in the industry: 71.62% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of SOLB (7.54) is better than 67.57% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that SOLB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.70, SOLB is doing worse than 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.46
WACC5.84%
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.
Looking at the Current ratio, with a value of 1.41, SOLB is doing worse than 63.51% of the companies in the same industry.
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 of 1.04. This is comparable to the rest of the industry: SOLB outperforms 45.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for SOLB have decreased strongly by -93.11% in the last year.
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
The Revenue for SOLB have been decreasing by -14.50% on average. This is quite bad
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 small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.88% yearly.
The Revenue is expected to grow by 1.27% on average over the next years.
EPS Next Y-20.34%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EPS Next 5Y1.88%
Revenue Next Year-5.28%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.01%
Revenue Next 5Y1.27%
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 7.53.
97.30% of the companies in the same industry are more expensive than SOLB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SOLB to the average of the S&P500 Index (26.15), we can say SOLB is valued rather cheaply.
A Price/Forward Earnings ratio of 7.73 indicates a rather cheap 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 97.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLB is valued cheaper than 86.49% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SOLB is valued cheaper than 94.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.94 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
SOLB has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SOLB's earnings are expected to decrease with -2.32% in the coming years.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.18%, SOLB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.18, SOLB pays a better dividend. On top of this SOLB pays more dividend than 90.54% of the companies listed in the same industry.
SOLB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
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.
DP164.94%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EBR:SOLB (11/28/2025, 5:35:15 PM)
27.5
-0.36 (-1.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners27.77%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.91B
Revenue(TTM)4.91B
Net Income(TTM)154.00M
Analysts68.7
Price Target28.76 (4.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
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)-4.41%
PT rev (3m)-7.14%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-22.54%
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.73 | ||
| P/S | 0.59 | ||
| P/FCF | 9.94 | ||
| P/OCF | 4.89 | ||
| P/B | 2.42 | ||
| P/tB | 12.88 | ||
| EV/EBITDA | 5.69 |
EPS(TTM)3.65
EY13.27%
EPS(NY)3.56
Fwd EY12.93%
FCF(TTM)2.77
FCFY10.06%
OCF(TTM)5.63
OCFY20.47%
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 | 1.7 |
F-Score5
WACC5.84%
ROIC/WACC1.46
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-20.34%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EPS Next 5Y1.88%
Revenue 1Y (TTM)-50.46%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-9.69%
Revenue Next Year-5.28%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.01%
Revenue Next 5Y1.27%
EBIT growth 1Y-58.33%
EBIT growth 3Y-19.61%
EBIT growth 5Y-11.06%
EBIT Next Year25.32%
EBIT Next 3Y11.93%
EBIT Next 5Y9.24%
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 -20.34% 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%.