SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
EBR:SOLB - Euronext Brussels - BE0003470755 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to SOLB. SOLB was compared to 61 industry peers in the Chemicals industry. SOLB scores excellent on profitability, 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
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
The Return On Assets of SOLB (33.59%) is better than 100.00% of its industry peers.
SOLB's Return On Equity of 173.38% is amongst the best of the industry. SOLB outperforms 100.00% of its industry peers.
SOLB has a Return On Invested Capital of 20.32%. 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 6.81%.
The last Return On Invested Capital (20.32%) for SOLB is above the 3 year average (9.92%), which is a sign of increasing profitability.
| 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 96.72% of the companies in the same industry.
In the last couple of years the Profit Margin of SOLB has grown nicely.
SOLB has a Operating Margin of 13.16%. This is in the better half of the industry: SOLB outperforms 78.69% of its industry peers.
In the last couple of years the Operating Margin of SOLB has grown nicely.
Looking at the Gross Margin, with a value of 22.80%, SOLB is doing worse than 60.66% of the companies in the same industry.
SOLB's Gross Margin has declined in the last couple of years.
| 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
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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SOLB has more shares outstanding
The debt/assets ratio for SOLB is higher compared to a year ago.
2.2 Solvency
SOLB has an Altman-Z score of 3.07. This indicates that SOLB is financially healthy and has little risk of bankruptcy at the moment.
SOLB has a better Altman-Z score (3.07) than 72.13% of its industry peers.
SOLB has a debt to FCF ratio of 15.22. This is a negative value and a sign of low solvency as SOLB would need 15.22 years to pay back of all of its debts.
SOLB has a Debt to FCF ratio (15.22) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that SOLB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.57, SOLB is doing worse than 83.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 15.22 | ||
| Altman-Z | 3.07 |
ROIC/WACC3.57
WACC5.69%
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 68.85% of its industry peers.
A Quick Ratio of 1.02 indicates that SOLB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, SOLB is in line with its industry, outperforming 50.82% of the companies in the same industry.
| 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%.
Measured over the past 5 years, SOLB shows a small growth in Earnings Per Share. The EPS has been growing by 4.50% on average per year.
The Revenue for SOLB has decreased by -62.52% in the past year. This is quite bad
The Revenue for SOLB have been decreasing by -11.82% on average. This is quite bad
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y4.5%
EPS Q2Q%220%
Revenue 1Y (TTM)-62.52%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%0.27%
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 -17.72% on average per year.
The Revenue is expected to decrease by -0.30% on average over the next years.
EPS Next Y-66.18%
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
EPS Next 5Y-17.72%
Revenue Next Year-8.6%
Revenue Next 2Y-2.3%
Revenue Next 3Y-0.39%
Revenue Next 5Y-0.3%
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 2.73, the valuation of SOLB can be described as very cheap.
100.00% of the companies in the same industry are more expensive than SOLB, based on the Price/Earnings ratio.
SOLB is valuated cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.11, which indicates a very decent valuation of SOLB.
Based on the Price/Forward Earnings ratio, SOLB is valued cheaply inside the industry as 95.08% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.73 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
98.36% of the companies in the same industry are more expensive than SOLB, based on the Enterprise Value to EBITDA ratio.
SOLB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOLB is cheaper than 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.4 | ||
| EV/EBITDA | 2.71 |
4.3 Compensation for Growth
SOLB has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SOLB's earnings are expected to decrease with -28.81% in the coming years.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.42%, SOLB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.25, SOLB pays a better dividend. On top of this SOLB pays more dividend than 90.16% 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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.
The Dividend Rate of SOLB has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP11.21%
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
EBR:SOLB (4/25/2025, 5:29:54 PM)
32.96
+0.38 (+1.17%)
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 Cap3.49B
Analysts68.33
Price Target34.81 (5.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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)0.18%
PT rev (3m)-0.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.07%
EPS NY rev (1m)6.37%
EPS NY rev (3m)4.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.73 | ||
| Fwd PE | 8.11 | ||
| P/S | 0.35 | ||
| P/FCF | 24.4 | ||
| P/OCF | 5.65 | ||
| P/B | 2.76 | ||
| P/tB | 12.93 | ||
| EV/EBITDA | 2.71 |
EPS(TTM)12.09
EY36.68%
EPS(NY)4.07
Fwd EY12.34%
FCF(TTM)1.35
FCFY4.1%
OCF(TTM)5.84
OCFY17.71%
SpS93.51
BVpS11.96
TBVpS2.55
PEG (NY)N/A
PEG (5Y)0.61
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 | 3.07 |
F-Score6
WACC5.69%
ROIC/WACC3.57
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%220%
EPS Next Y-66.18%
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
EPS Next 5Y-17.72%
Revenue 1Y (TTM)-62.52%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%0.27%
Revenue Next Year-8.6%
Revenue Next 2Y-2.3%
Revenue Next 3Y-0.39%
Revenue Next 5Y-0.3%
EBIT growth 1Y-35.4%
EBIT growth 3Y-0.82%
EBIT growth 5Y-7.42%
EBIT Next Year6.54%
EBIT Next 3Y3.72%
EBIT Next 5Y4.09%
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%