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 61 industry peers in the Chemicals industry. SOLB has an excellent profitability rating, but there are some minor concerns on its financial health. SOLB has a bad growth rate and is valued cheaply. 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.
SOLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOLB has a Return On Assets of 33.59%. This is amongst the best in the industry. SOLB outperforms 100.00% of its industry peers.
The Return On Equity of SOLB (173.38%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 20.32%, SOLB belongs to the best of the industry, outperforming 100.00% 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 6.72%.
The 3 year average ROIC (9.92%) for SOLB is below the current ROIC(20.32%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 22.17%, SOLB belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
SOLB's Profit Margin has improved in the last couple of years.
SOLB has a Operating Margin of 13.16%. This is amongst the best in the industry. SOLB outperforms 82.54% of its industry peers.
SOLB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 22.80%, SOLB is doing worse than 61.90% of the companies in the same industry.
In the last couple of years the Gross Margin of SOLB has declined.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SOLB is creating value.
SOLB has more shares outstanding than it did 1 year ago.
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 3.09. This indicates that SOLB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SOLB (3.09) is better than 74.60% of its industry peers.
The Debt to FCF ratio of SOLB is 15.22, which is on the high side as it means it would take SOLB, 15.22 years of fcf income to pay off all of its debts.
SOLB has a Debt to FCF ratio (15.22) which is in line with its industry peers.
A Debt/Equity ratio of 1.57 is on the high side and indicates that SOLB has dependencies on debt financing.
The Debt to Equity ratio of SOLB (1.57) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 15.22 | ||
| Altman-Z | 3.09 |
ROIC/WACC3.65
WACC5.56%
2.3 Liquidity
A Current Ratio of 1.37 indicates that SOLB should not have too much problems paying its short term obligations.
SOLB has a Current ratio of 1.37. This is in the lower half of the industry: SOLB underperforms 69.84% of its industry peers.
SOLB has a Quick Ratio of 1.02. 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 1.02. This is comparable to the rest of the industry: SOLB outperforms 46.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
SOLB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.78%.
SOLB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.50% yearly.
SOLB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.28%.
Measured over the past years, SOLB shows a very negative growth in Revenue. The Revenue has been decreasing by -11.82% on average per year.
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
The Earnings Per Share is expected to decrease by -16.91% on average over the next years. This is quite bad
The Revenue is expected to decrease by -0.06% on average over the next years.
EPS Next Y-68.21%
EPS Next 2Y-42.23%
EPS Next 3Y-28.27%
EPS Next 5Y-16.91%
Revenue Next Year-8.6%
Revenue Next 2Y-2.3%
Revenue Next 3Y-0.39%
Revenue Next 5Y-0.06%
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
Based on the Price/Earnings ratio of 2.89, 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 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. SOLB is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.64 indicates a reasonable valuation of SOLB.
93.65% 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 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.89 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
SOLB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SOLB is cheaper than 98.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOLB indicates a somewhat cheap valuation: SOLB is cheaper than 63.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.83 | ||
| EV/EBITDA | 2.84 |
4.3 Compensation for Growth
The excellent profitability rating of SOLB may justify a higher PE ratio.
SOLB's earnings are expected to decrease with -28.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-42.23%
EPS Next 3Y-28.27%
5. Dividend
5.1 Amount
SOLB has a Yearly Dividend Yield of 5.20%, which is a nice return.
Compared to an average industry Dividend Yield of 2.89, SOLB pays a better dividend. On top of this SOLB pays more dividend than 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, SOLB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
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.
SOLB's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP11.21%
EPS Next 2Y-42.23%
EPS Next 3Y-28.27%
EBR:SOLB (3/7/2025, 7:00:00 PM)
34.88
+2.16 (+6.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners30.08%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.69B
Analysts68.33
Price Target34.74 (-0.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
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%
PT rev (3m)2.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.07%
EPS NY rev (1m)-3.66%
EPS NY rev (3m)-2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-2.66%
Revenue NY rev (3m)-1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.89 | ||
| Fwd PE | 8.64 | ||
| P/S | 0.37 | ||
| P/FCF | 25.83 | ||
| P/OCF | 5.98 | ||
| P/B | 2.92 | ||
| P/tB | 13.68 | ||
| EV/EBITDA | 2.84 |
EPS(TTM)12.09
EY34.66%
EPS(NY)4.04
Fwd EY11.57%
FCF(TTM)1.35
FCFY3.87%
OCF(TTM)5.84
OCFY16.73%
SpS93.51
BVpS11.96
TBVpS2.55
PEG (NY)N/A
PEG (5Y)0.64
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 | 3.09 |
F-Score6
WACC5.56%
ROIC/WACC3.65
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-68.21%
EPS Next 2Y-42.23%
EPS Next 3Y-28.27%
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-8.6%
Revenue Next 2Y-2.3%
Revenue Next 3Y-0.39%
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%