SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
Europe - EBR:SOLB - BE0003470755 - Common Stock
27.46 EUR
-0.04 (-0.15%)
We assign a fundamental rating of 5 out of 10 to SOLB. SOLB was compared to 66 industry peers in the Chemicals industry. SOLB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
SOLB's Return On Assets of 2.21% is fine compared to the rest of the industry. SOLB outperforms 62.12% of its industry peers.
With a decent Return On Equity value of 12.19%, SOLB is doing good in the industry, outperforming 77.27% of the companies in the same industry.
The Return On Invested Capital of SOLB (8.43%) is better than 74.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOLB is above the industry average of 6.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 12.19% | ||
| ROIC | 8.43% |
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 (2.81%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SOLB has grown nicely.
SOLB has a Operating Margin of 10.64%. This is in the better half of the industry: SOLB outperforms 75.76% of its industry peers.
In the last couple of years the Operating Margin of SOLB has grown nicely.
The Gross Margin of SOLB (21.23%) is worse than 68.18% of its industry peers.
In the last couple of years the Gross Margin of SOLB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.64% | ||
| PM (TTM) | 2.81% | ||
| GM | 21.23% |
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.
SOLB has less shares outstanding than it did 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 1.87. This is not the best score and indicates that SOLB is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of SOLB (1.87) is worse than 63.64% of its industry peers.
SOLB has a debt to FCF ratio of 9.16. This is a negative value and a sign of low solvency as SOLB would need 9.16 years to pay back of all of its debts.
SOLB has a Debt to FCF ratio of 9.16. This is in the better half of the industry: SOLB outperforms 63.64% of its industry peers.
SOLB has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOLB (1.80) is worse than 89.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.38
WACC6.11%
2.3 Liquidity
SOLB has a Current Ratio of 1.33. 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 1.33. This is in the lower half of the industry: SOLB underperforms 74.24% of its industry peers.
SOLB has a Quick Ratio of 1.33. This is a bad value and indicates that SOLB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, SOLB is in line with its industry, outperforming 42.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for SOLB have decreased strongly by -94.29% in the last year.
The Earnings Per Share has been growing by 153.72% 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 -57.61%.
SOLB shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -14.50% yearly.
EPS 1Y (TTM)-94.29%
EPS 3Y-37%
EPS 5Y153.72%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-57.61%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-7.71%
3.2 Future
The Earnings Per Share is expected to grow by 1.97% on average over the next years.
SOLB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.02% yearly.
EPS Next Y-18.61%
EPS Next 2Y-7.07%
EPS Next 3Y-0.64%
EPS Next 5Y1.97%
Revenue Next Year-4.69%
Revenue Next 2Y-1%
Revenue Next 3Y0.33%
Revenue Next 5Y-0.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 7.21 indicates a rather cheap valuation of SOLB.
SOLB's Price/Earnings ratio is rather cheap when compared to the industry. SOLB is cheaper than 98.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of SOLB to the average of the S&P500 Index (27.27), we can say SOLB is valued rather cheaply.
A Price/Forward Earnings ratio of 7.78 indicates a rather cheap valuation of SOLB.
98.48% of the companies in the same industry are more expensive than SOLB, based on the Price/Forward Earnings ratio.
SOLB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
87.88% of the companies in the same industry are more expensive than SOLB, based on the Enterprise Value to EBITDA ratio.
89.39% of the companies in the same industry are more expensive than SOLB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.96 | ||
| EV/EBITDA | 5.47 |
4.3 Compensation for Growth
The decent profitability rating of SOLB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-7.07%
EPS Next 3Y-0.64%
5. Dividend
5.1 Amount
SOLB has a Yearly Dividend Yield of 6.19%, which is a nice return.
Compared to an average industry Dividend Yield of 3.04, SOLB pays a better dividend. On top of this SOLB pays more dividend than 95.45% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
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
SOLB pays out 182.73% of its income as dividend. This is not a sustainable payout ratio.
DP182.73%
EPS Next 2Y-7.07%
EPS Next 3Y-0.64%
EBR:SOLB (9/16/2025, 5:29:56 PM)
27.46
-0.04 (-0.15%)
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 Cap2.91B
Analysts68.7
Price Target30.97 (12.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
Yearly Dividend2.44
Dividend Growth(5Y)-9.94%
DP182.73%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.02%
Min EPS beat(2)9%
Max EPS beat(2)11.03%
EPS beat(4)3
Avg EPS beat(4)10.23%
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)-3.62%
Min Revenue beat(2)-4.75%
Max Revenue beat(2)-2.48%
Revenue beat(4)0
Avg Revenue beat(4)-2.86%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)-0.96%
Revenue beat(8)2
Avg Revenue beat(8)-1.68%
Revenue beat(12)6
Avg Revenue beat(12)4.24%
Revenue beat(16)10
Avg Revenue beat(16)9.1%
PT rev (1m)-3.9%
PT rev (3m)-7.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.05%
EPS NY rev (1m)-18.17%
EPS NY rev (3m)-18.17%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-5.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 7.78 | ||
| P/S | 0.59 | ||
| P/FCF | 11.96 | ||
| P/OCF | 5.28 | ||
| P/B | 2.55 | ||
| P/tB | 17.73 | ||
| EV/EBITDA | 5.47 |
EPS(TTM)3.81
EY13.87%
EPS(NY)3.53
Fwd EY12.86%
FCF(TTM)2.3
FCFY8.36%
OCF(TTM)5.2
OCFY18.95%
SpS46.8
BVpS10.77
TBVpS1.55
PEG (NY)N/A
PEG (5Y)0.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 12.19% | ||
| ROCE | 11.24% | ||
| ROIC | 8.43% | ||
| ROICexc | 9.07% | ||
| ROICexgc | 11.69% | ||
| OM | 10.64% | ||
| PM (TTM) | 2.81% | ||
| GM | 21.23% | ||
| FCFM | 4.9% |
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-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.16 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 87.75% | ||
| Cap/Sales | 6.22% | ||
| Interest Coverage | 7.75 | ||
| Cash Conversion | 62.76% | ||
| Profit Quality | 174.82% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.87 |
F-Score4
WACC6.11%
ROIC/WACC1.38
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)-94.29%
EPS 3Y-37%
EPS 5Y153.72%
EPS Q2Q%-11.54%
EPS Next Y-18.61%
EPS Next 2Y-7.07%
EPS Next 3Y-0.64%
EPS Next 5Y1.97%
Revenue 1Y (TTM)-57.61%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-7.71%
Revenue Next Year-4.69%
Revenue Next 2Y-1%
Revenue Next 3Y0.33%
Revenue Next 5Y-0.02%
EBIT growth 1Y-67.31%
EBIT growth 3Y-19.61%
EBIT growth 5Y-11.06%
EBIT Next Year39.83%
EBIT Next 3Y15.32%
EBIT Next 5Y8.97%
FCF growth 1Y-79.37%
FCF growth 3Y-27.42%
FCF growth 5Y-19.2%
OCF growth 1Y-75.53%
OCF growth 3Y-25.69%
OCF growth 5Y-19.46%