SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
EBR:SOLB - Euronext Brussels - BE0003470755 - Common Stock - Currency: EUR
SOLB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 67 industry peers in the Chemicals industry. SOLB has an excellent profitability rating, but 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's Return On Assets of 3.10% is fine compared to the rest of the industry. SOLB outperforms 61.19% of its industry peers.
SOLB has a Return On Equity of 14.50%. This is amongst the best in the industry. SOLB outperforms 82.09% of its industry peers.
With an excellent Return On Invested Capital value of 9.39%, SOLB belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SOLB is above the industry average of 6.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 14.5% | ||
| ROIC | 9.39% |
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 (3.88%) is better than 62.69% of its industry peers.
SOLB's Profit Margin has improved in the last couple of years.
The Operating Margin of SOLB (11.43%) is better than 76.12% of its industry peers.
In the last couple of years the Operating Margin of SOLB has grown nicely.
The Gross Margin of SOLB (21.85%) is worse than 64.18% of its industry peers.
SOLB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.43% | ||
| PM (TTM) | 3.88% | ||
| GM | 21.85% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SOLB is creating value.
SOLB has less shares outstanding than it did 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 1.81, we must say that SOLB is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.81, SOLB is not doing good in the industry: 61.19% of the companies in the same industry are doing better.
The Debt to FCF ratio of SOLB is 7.45, which is on the high side as it means it would take SOLB, 7.45 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SOLB (7.45) is better than 67.16% of its industry peers.
SOLB has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
SOLB has a worse Debt to Equity ratio (1.54) than 86.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.6
WACC5.87%
2.3 Liquidity
SOLB has a Current Ratio of 1.38. This is a normal value and indicates that SOLB is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.38, SOLB is not doing good in the industry: 70.15% of the companies in the same industry are doing better.
A Quick Ratio of 1.01 indicates that SOLB should not have too much problems paying its short term obligations.
SOLB has a Quick ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for SOLB have decreased strongly by -92.24% 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 153.72% on average per year.
The Revenue for SOLB has decreased by -63.24% 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)-92.24%
EPS 3Y-37%
EPS 5Y153.72%
EPS Q2Q%-24.58%
Revenue 1Y (TTM)-63.24%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-13.56%
3.2 Future
The Earnings Per Share is expected to grow by 1.64% on average over the next years.
The Revenue is expected to grow by 0.49% on average over the next years.
EPS Next Y-0.54%
EPS Next 2Y3.28%
EPS Next 3Y5.25%
EPS Next 5Y1.64%
Revenue Next Year1.3%
Revenue Next 2Y3.09%
Revenue Next 3Y3.58%
Revenue Next 5Y0.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 7.37, the valuation of SOLB can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 97.01% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, SOLB is valued rather cheaply.
A Price/Forward Earnings ratio of 6.64 indicates a rather cheap valuation of SOLB.
97.01% of the companies in the same industry are more expensive than SOLB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.37 | ||
| Fwd PE | 6.64 |
4.2 Price Multiples
89.55% of the companies in the same industry are more expensive than SOLB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SOLB is valued cheaply inside the industry as 91.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.3 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
SOLB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y3.28%
EPS Next 3Y5.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.64%, SOLB is a good candidate for dividend investing.
SOLB's Dividend Yield is rather good when compared to the industry average which is at 2.99. SOLB pays more dividend than 91.04% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, SOLB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
5.2 History
The dividend of SOLB decreases each year by -9.94%.
Dividend Growth(5Y)-9.94%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
94.92% of the earnings are spent on dividend by SOLB. This is not a sustainable payout ratio.
DP94.92%
EPS Next 2Y3.28%
EPS Next 3Y5.25%
EBR:SOLB (7/15/2025, 7:00:00 PM)
28.98
-0.46 (-1.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners26.72%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.07B
Analysts69.57
Price Target33.35 (15.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
Yearly Dividend2.44
Dividend Growth(5Y)-9.94%
DP94.92%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.54%
Min EPS beat(2)-1.96%
Max EPS beat(2)11.03%
EPS beat(4)3
Avg EPS beat(4)8.73%
Min EPS beat(4)-1.96%
Max EPS beat(4)22.86%
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)-2.86%
Min Revenue beat(2)-4.75%
Max Revenue beat(2)-0.96%
Revenue beat(4)0
Avg Revenue beat(4)-3%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)-0.96%
Revenue beat(8)3
Avg Revenue beat(8)-0.18%
Revenue beat(12)7
Avg Revenue beat(12)6.6%
Revenue beat(16)11
Avg Revenue beat(16)9.84%
PT rev (1m)-0.82%
PT rev (3m)-4.18%
EPS NQ rev (1m)3.1%
EPS NQ rev (3m)-11.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.53%
Revenue NQ rev (1m)-4.61%
Revenue NQ rev (3m)-7.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.37 | ||
| Fwd PE | 6.64 | ||
| P/S | 0.6 | ||
| P/FCF | 10.3 | ||
| P/OCF | 5.2 | ||
| P/B | 2.26 | ||
| P/tB | 8.34 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)3.93
EY13.56%
EPS(NY)4.36
Fwd EY15.05%
FCF(TTM)2.81
FCFY9.71%
OCF(TTM)5.57
OCFY19.23%
SpS47.94
BVpS12.84
TBVpS3.48
PEG (NY)N/A
PEG (5Y)0.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 14.5% | ||
| ROCE | 12.52% | ||
| ROIC | 9.39% | ||
| ROICexc | 10.4% | ||
| ROICexgc | 13.63% | ||
| OM | 11.43% | ||
| PM (TTM) | 3.88% | ||
| GM | 21.85% | ||
| FCFM | 5.87% |
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%
ROICexcg growth 3Y8.77%
ROICexcg 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 7.45 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 82.25% | ||
| Cap/Sales | 5.75% | ||
| Interest Coverage | 12.34 | ||
| Cash Conversion | 63.1% | ||
| Profit Quality | 151.27% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.81 |
F-Score5
WACC5.87%
ROIC/WACC1.6
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)-92.24%
EPS 3Y-37%
EPS 5Y153.72%
EPS Q2Q%-24.58%
EPS Next Y-0.54%
EPS Next 2Y3.28%
EPS Next 3Y5.25%
EPS Next 5Y1.64%
Revenue 1Y (TTM)-63.24%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-13.56%
Revenue Next Year1.3%
Revenue Next 2Y3.09%
Revenue Next 3Y3.58%
Revenue Next 5Y0.49%
EBIT growth 1Y-70.9%
EBIT growth 3Y-19.61%
EBIT growth 5Y-11.06%
EBIT Next Year39.83%
EBIT Next 3Y15.32%
EBIT Next 5Y8.76%
FCF growth 1Y-69.5%
FCF growth 3Y-27.42%
FCF growth 5Y-19.2%
OCF growth 1Y-69.67%
OCF growth 3Y-25.69%
OCF growth 5Y-19.46%