SOLVAY SA (SOLB.BR)
BE0003470755 - Common Stock
SOLB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Chemicals industry. SOLB scores excellent on profitability, but there are some minor concerns on its financial health. SOLB is cheap, but on the other hand it scores bad on growth. SOLB also has an excellent dividend rating.
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.
SOLB had positive earnings in 4 of the past 5 years.
In the past 5 years SOLB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SOLB (36.12%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 176.05%, SOLB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SOLB has a Return On Invested Capital of 24.77%. This is amongst the best in the industry. SOLB outperforms 100.00% of its industry peers.
SOLB had an Average Return On Invested Capital over the past 3 years of 9.92%. This is above the industry average of 7.48%.
The 3 year average ROIC (9.92%) for SOLB is below the current ROIC(24.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 36.12% | ||
| ROE | 176.05% | ||
| ROIC | 24.77% |
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
SOLB's Profit Margin of 20.44% is amongst the best of the industry. SOLB outperforms 96.83% of its industry peers.
SOLB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.79%, SOLB belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
In the last couple of years the Operating Margin of SOLB has grown nicely.
Looking at the Gross Margin, with a value of 24.67%, SOLB is doing worse than 65.08% 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 | 13.79% | ||
| PM (TTM) | 20.44% | ||
| GM | 24.67% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
An Altman-Z score of 3.44 indicates that SOLB is not in any danger for bankruptcy at the moment.
SOLB's Altman-Z score of 3.44 is fine compared to the rest of the industry. SOLB outperforms 77.78% of its industry peers.
The Debt to FCF ratio of SOLB is 5.36, which is a neutral value as it means it would take SOLB, 5.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SOLB (5.36) is better than 68.25% of its industry peers.
SOLB has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.48, SOLB is not doing good in the industry: 92.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 5.36 | ||
| Altman-Z | 3.44 |
ROIC/WACC5.11
WACC4.85%
2.3 Liquidity
SOLB has a Current Ratio of 1.37. 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 1.37. This is in the lower half of the industry: SOLB underperforms 79.37% of its industry peers.
A Quick Ratio of 1.03 indicates that SOLB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, SOLB is in line with its industry, outperforming 41.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.03 |
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.
Looking at the last year, SOLB shows a very negative growth in Revenue. The Revenue has decreased by -62.52% in the last year.
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)-62.52%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%-57.92%
3.2 Future
Based on estimates for the next years, SOLB will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.86% on average per year.
SOLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.35% yearly.
EPS Next Y-67.52%
EPS Next 2Y-40.89%
EPS Next 3Y-27.21%
EPS Next 5Y-17.86%
Revenue Next Year-7.32%
Revenue Next 2Y-2.19%
Revenue Next 3Y-0.4%
Revenue Next 5Y0.35%
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
With a Price/Earnings ratio of 2.54, the valuation of SOLB can be described as very cheap.
Based on the Price/Earnings ratio, SOLB is valued cheaper than 100.00% of the companies in the same industry.
SOLB is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.27, the valuation of SOLB can be described as very cheap.
Based on the Price/Forward Earnings ratio, SOLB is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.99. SOLB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.54 | ||
| Fwd PE | 7.27 |
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.
82.54% 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 | 8.04 | ||
| EV/EBITDA | 2.12 |
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 -27.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-40.89%
EPS Next 3Y-27.21%
5. Dividend
5.1 Amount
SOLB has a Yearly Dividend Yield of 5.52%, which is a nice return.
SOLB's Dividend Yield is rather good when compared to the industry average which is at 4.03. SOLB pays more dividend than 84.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SOLB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
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
10.30% of the earnings are spent on dividend by SOLB. This is a low number and 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.
DP10.3%
EPS Next 2Y-40.89%
EPS Next 3Y-27.21%
SOLVAY SA
EBR:SOLB (12/24/2024, 7:00:00 PM)
30.69
+0.2 (+0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners29.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.25B
Analysts68.33
Price Target33.96 (10.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
Dividend Growth(5Y)-0.17%
DP10.3%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)1
Avg Revenue beat(2)1.74%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)6.48%
Revenue beat(4)2
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-8.71%
Max Revenue beat(4)6.48%
Revenue beat(8)6
Avg Revenue beat(8)7.8%
Revenue beat(12)10
Avg Revenue beat(12)13.09%
Revenue beat(16)14
Avg Revenue beat(16)11.82%
PT rev (1m)4.04%
PT rev (3m)6.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.47%
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.54 | ||
| Fwd PE | 7.27 | ||
| P/S | 0.28 | ||
| P/FCF | 8.04 | ||
| P/OCF | 2.95 | ||
| P/B | 2.39 | ||
| P/tB | 9.21 | ||
| EV/EBITDA | 2.12 |
EPS(TTM)12.09
EY39.39%
EPS(NY)4.22
Fwd EY13.76%
FCF(TTM)3.82
FCFY12.43%
OCF(TTM)10.41
OCFY33.91%
SpS110.39
BVpS12.82
TBVpS3.33
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 36.12% | ||
| ROE | 176.05% | ||
| ROCE | 33.03% | ||
| ROIC | 24.77% | ||
| ROICexc | 27.47% | ||
| ROICexgc | 35.59% | ||
| OM | 13.79% | ||
| PM (TTM) | 20.44% | ||
| GM | 24.67% | ||
| FCFM | 3.46% |
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-Score4
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 5.36 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 97.9% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 161.2 | ||
| Cash Conversion | 47.4% | ||
| Profit Quality | 16.91% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 3.44 |
F-Score4
WACC4.85%
ROIC/WACC5.11
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-67.52%
EPS Next 2Y-40.89%
EPS Next 3Y-27.21%
EPS Next 5Y-17.86%
Revenue 1Y (TTM)-62.52%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%-57.92%
Revenue Next Year-7.32%
Revenue Next 2Y-2.19%
Revenue Next 3Y-0.4%
Revenue Next 5Y0.35%
EBIT growth 1Y-27.09%
EBIT growth 3Y-0.82%
EBIT growth 5Y-7.42%
EBIT Next Year5.23%
EBIT Next 3Y4.59%
EBIT Next 5Y2.51%
FCF growth 1Y-59.64%
FCF growth 3Y6.21%
FCF growth 5Y-0.92%
OCF growth 1Y-36.04%
OCF growth 3Y15.45%
OCF growth 5Y2.13%