SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
Europe - EBR:SOLB - BE0003470755 - Common Stock
27.52 EUR
-0.32 (-1.15%)
Overall SOLB gets a fundamental rating of 5 out of 10. We evaluated SOLB against 67 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
In the past year SOLB was profitable.
SOLB had a positive operating cash flow in the past year.
Of the past 5 years SOLB 4 years were profitable.
SOLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOLB has a Return On Assets (2.21%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 12.19%, SOLB is doing good in the industry, outperforming 73.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.43%, SOLB is in the better half of the industry, outperforming 73.13% 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 7.01%.
| 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 of 2.81%. This is comparable to the rest of the industry: SOLB outperforms 58.21% of its industry peers.
In the last couple of years the Profit Margin of SOLB has grown nicely.
SOLB has a better Operating Margin (10.64%) than 74.63% of its industry peers.
In the last couple of years the Operating Margin of SOLB has grown nicely.
SOLB has a worse Gross Margin (21.23%) than 65.67% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SOLB 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.
The debt/assets ratio for SOLB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.87 indicates that SOLB is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOLB has a Altman-Z score of 1.87. This is in the lower half of the industry: SOLB underperforms 67.16% of its industry peers.
The Debt to FCF ratio of SOLB is 9.16, which is on the high side as it means it would take SOLB, 9.16 years of fcf income to pay off all of its debts.
SOLB has a better Debt to FCF ratio (9.16) than 65.67% 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.
Looking at the Debt to Equity ratio, with a value of 1.80, SOLB is doing worse than 89.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.41
WACC5.98%
2.3 Liquidity
A Current Ratio of 1.33 indicates that SOLB should not have too much problems paying its short term obligations.
SOLB's Current ratio of 1.33 is on the low side compared to the rest of the industry. SOLB is outperformed by 73.13% 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.
SOLB has a Quick ratio of 0.96. This is comparable to the rest of the industry: SOLB outperforms 40.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
SOLB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -94.29%.
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.
SOLB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -57.61%.
The Revenue for SOLB have been decreasing by -14.50% on average. This is quite bad
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
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
Based on the Price/Earnings ratio of 7.22, the valuation of SOLB can be described as very cheap.
Based on the Price/Earnings ratio, SOLB is valued cheaper than 97.01% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. SOLB is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.74, the valuation of SOLB can be described as very cheap.
98.51% of the companies in the same industry are more expensive than SOLB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SOLB to the average of the S&P500 Index (34.59), we can say SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
SOLB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SOLB is cheaper than 85.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SOLB is valued cheaper than 88.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.99 | ||
| EV/EBITDA | 5.51 |
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
SOLB has a Yearly Dividend Yield of 6.64%, which is a nice return.
Compared to an average industry Dividend Yield of 3.26, SOLB pays a better dividend. On top of this SOLB pays more dividend than 92.54% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
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
182.73% of the earnings are spent on dividend by SOLB. This is not a sustainable payout ratio.
DP182.73%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EBR:SOLB (11/14/2025, 7:00:00 PM)
27.52
-0.32 (-1.15%)
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)4.96B
Net Income(TTM)139.00M
Analysts68.7
Price Target29.89 (8.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
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)-0.68%
PT rev (3m)-7.28%
EPS NQ rev (1m)-8.82%
EPS NQ rev (3m)-21.52%
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-19.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.59 | ||
| P/FCF | 11.99 | ||
| P/OCF | 5.29 | ||
| P/B | 2.56 | ||
| P/tB | 17.77 | ||
| EV/EBITDA | 5.51 |
EPS(TTM)3.81
EY13.84%
EPS(NY)3.56
Fwd EY12.92%
FCF(TTM)2.3
FCFY8.34%
OCF(TTM)5.2
OCFY18.91%
SpS46.8
BVpS10.77
TBVpS1.55
PEG (NY)N/A
PEG (5Y)0.05
Graham Number30.38
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%
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-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
WACC5.98%
ROIC/WACC1.41
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-20.34%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EPS Next 5Y1.88%
Revenue 1Y (TTM)-57.61%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-7.71%
Revenue Next Year-5.28%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.01%
Revenue Next 5Y1.27%
EBIT growth 1Y-67.31%
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-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%
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 182.73%.