SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:SOLB - BE0003470755 - Common Stock
26.94 EUR
+0.58 (+2.2%)
Overall SOLB gets a fundamental rating of 5 out of 10. We evaluated SOLB against 72 industry peers in the Chemicals industry. SOLB has a medium profitability rating, but doesn't score so well on its financial health evaluation. SOLB is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
SOLB had positive earnings in the past year.
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 Return On Assets of 2.43%. This is comparable to the rest of the industry: SOLB outperforms 58.33% 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 70.83% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.54%, SOLB is doing good in the industry, outperforming 73.61% of the companies in the same industry.
SOLB had an Average Return On Invested Capital over the past 3 years of 11.19%. This is above the industry average of 7.08%.
| 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's Profit Margin of 3.14% is in line compared to the rest of the industry. SOLB outperforms 58.33% 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 72.22% 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 70.83% 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
SOLB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SOLB has less shares outstanding
The number of shares outstanding for SOLB has been increased compared to 5 years ago.
The debt/assets ratio for SOLB is higher compared to a year ago.
2.2 Solvency
SOLB has an Altman-Z score of 1.68. This is a bad value and indicates that SOLB is not financially healthy and even has some risk of bankruptcy.
SOLB's Altman-Z score of 1.68 is on the low side compared to the rest of the industry. SOLB is outperformed by 76.39% of its industry peers.
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.
SOLB has a Debt to FCF ratio of 7.54. This is in the better half of the industry: SOLB outperforms 61.11% of its industry peers.
SOLB has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.70, SOLB is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.45
WACC5.88%
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.
SOLB has a Current ratio of 1.41. This is in the lower half of the industry: SOLB underperforms 66.67% of its industry peers.
A Quick Ratio of 1.04 indicates that SOLB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, SOLB is in line with its industry, outperforming 43.06% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 153.65% on average over the past years. This is a very strong growth
SOLB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -50.46%.
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
Based on estimates for the next years, SOLB will show a decrease in Earnings Per Share. The EPS will decrease by -2.30% on average per year.
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
Based on the Price/Earnings ratio of 7.38, the valuation of SOLB can be described as very cheap.
97.22% of the companies in the same industry are more expensive than SOLB, based on the Price/Earnings ratio.
SOLB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.59.
Based on the Price/Forward Earnings ratio of 8.47, the valuation of SOLB can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 98.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 8.47 |
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 87.50% of the companies listed in the same industry.
SOLB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SOLB is cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.74 | ||
| EV/EBITDA | 5.52 |
4.3 Compensation for Growth
The decent profitability rating of SOLB may justify a higher PE ratio.
SOLB's earnings are expected to decrease with -4.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-11.82%
EPS Next 3Y-4.04%
5. Dividend
5.1 Amount
SOLB has a Yearly Dividend Yield of 6.16%, which is a nice return.
Compared to an average industry Dividend Yield of 3.19, SOLB pays a better dividend. On top of this SOLB pays more dividend than 93.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, SOLB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
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.
The Dividend Rate of SOLB has been decling, while earnings will also be 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 (12/11/2025, 5:21:48 PM)
26.94
+0.58 (+2.2%)
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 Cap2.85B
Revenue(TTM)4.91B
Net Income(TTM)154.00M
Analysts53.6
Price Target28.22 (4.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.16% |
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)-16.67%
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)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 8.47 | ||
| P/S | 0.58 | ||
| P/FCF | 9.74 | ||
| P/OCF | 4.79 | ||
| P/B | 2.37 | ||
| P/tB | 12.62 | ||
| EV/EBITDA | 5.52 |
EPS(TTM)3.65
EY13.55%
EPS(NY)3.18
Fwd EY11.8%
FCF(TTM)2.77
FCFY10.27%
OCF(TTM)5.63
OCFY20.89%
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 | 1.68 |
F-Score5
WACC5.88%
ROIC/WACC1.45
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%.