SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
Europe - EBR:SOLB - BE0003470755 - Common Stock
28 EUR
+0.08 (+0.29%)
Taking everything into account, SOLB scores 5 out of 10 in our fundamental rating. SOLB was compared to 66 industry peers in the Chemicals industry. There are concerns on the financial health of SOLB while its profitability can be described as average. SOLB is cheap, but on the other hand it scores bad on growth.
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.
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.
SOLB's Return On Equity of 12.19% is fine compared to the rest of the industry. SOLB outperforms 74.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.43%, SOLB is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SOLB is above the industry average of 7.02%.
| 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
Looking at the Profit Margin, with a value of 2.81%, SOLB is in line with its industry, outperforming 56.06% of the companies in the same industry.
In the last couple of years the Profit Margin of SOLB has grown nicely.
With a decent Operating Margin value of 10.64%, SOLB is doing good in the industry, outperforming 74.24% of the companies in the same industry.
In the last couple of years the Operating Margin of SOLB has grown nicely.
With a Gross Margin value of 21.23%, SOLB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
SOLB's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, SOLB has less shares outstanding
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's Altman-Z score of 1.87 is on the low side compared to the rest of the industry. SOLB is outperformed by 65.15% 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 62.12% of its industry peers.
A Debt/Equity ratio of 1.80 is on the high side and indicates that SOLB has dependencies on debt financing.
SOLB has a Debt to Equity ratio of 1.80. This is amonst the worse of the industry: SOLB underperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.39
WACC6.05%
2.3 Liquidity
A Current Ratio of 1.33 indicates that SOLB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.33, SOLB is not doing good in the industry: 74.24% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.96, SOLB perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
| 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.
Looking at the last year, SOLB shows a very negative growth in Revenue. The Revenue has decreased by -57.61% in the last year.
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
Based on estimates for the next years, SOLB will show a small growth in Earnings Per Share. The EPS will grow by 1.50% on average per year.
Based on estimates for the next years, SOLB will show a small growth in Revenue. The Revenue will grow by 0.88% on average per year.
EPS Next Y-18.61%
EPS Next 2Y-7.65%
EPS Next 3Y-1.07%
EPS Next 5Y1.5%
Revenue Next Year-5.28%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.01%
Revenue Next 5Y0.88%
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.
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 7.35, the valuation of SOLB can be described as very cheap.
95.45% of the companies in the same industry are more expensive than SOLB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SOLB to the average of the S&P500 Index (27.42), we can say SOLB is valued rather cheaply.
SOLB is valuated reasonably with a Price/Forward Earnings ratio of 8.03.
SOLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOLB is cheaper than 95.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 87.88% of the companies listed in the same industry.
86.36% 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 | 12.2 | ||
| EV/EBITDA | 5.52 |
4.3 Compensation for Growth
SOLB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-7.65%
EPS Next 3Y-1.07%
5. Dividend
5.1 Amount
SOLB has a Yearly Dividend Yield of 6.04%, which is a nice return.
Compared to an average industry Dividend Yield of 3.14, SOLB pays a better dividend. On top of this SOLB pays more dividend than 90.91% of the companies listed 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 | 6.04% |
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-7.65%
EPS Next 3Y-1.07%
EBR:SOLB (10/20/2025, 5:29:53 PM)
28
+0.08 (+0.29%)
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 Cap2.96B
Analysts67.83
Price Target30.09 (7.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
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)-2.85%
PT rev (3m)-8.1%
EPS NQ rev (1m)-8.82%
EPS NQ rev (3m)-34.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.17%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-6.5%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-6.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 8.03 | ||
| P/S | 0.6 | ||
| P/FCF | 12.2 | ||
| P/OCF | 5.38 | ||
| P/B | 2.6 | ||
| P/tB | 18.08 | ||
| EV/EBITDA | 5.52 |
EPS(TTM)3.81
EY13.61%
EPS(NY)3.49
Fwd EY12.45%
FCF(TTM)2.3
FCFY8.2%
OCF(TTM)5.2
OCFY18.59%
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
WACC6.05%
ROIC/WACC1.39
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-7.65%
EPS Next 3Y-1.07%
EPS Next 5Y1.5%
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 5Y0.88%
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 5Y8.81%
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%