SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:SOLB - BE0003470755 - Common Stock
28.22 EUR
+0.72 (+2.62%)
SOLB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 74 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
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.
Each year in the past 5 years SOLB had a positive operating cash flow.
1.2 Ratios
SOLB's Return On Assets of 2.43% is in line compared to the rest of the industry. SOLB outperforms 59.46% of its industry peers.
SOLB has a Return On Equity of 12.80%. This is in the better half of the industry: SOLB outperforms 71.62% of its industry peers.
SOLB has a better Return On Invested Capital (8.54%) than 74.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOLB is above the industry average of 6.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 12.8% | ||
| ROIC | 8.54% |
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
With a Profit Margin value of 3.14%, SOLB perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
In the last couple of years the Profit Margin of SOLB has grown nicely.
SOLB has a better Operating Margin (11.07%) than 74.32% of its industry peers.
In the last couple of years the Operating Margin of SOLB has grown nicely.
The Gross Margin of SOLB (21.24%) is worse than 67.57% of its industry peers.
SOLB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.07% | ||
| PM (TTM) | 3.14% | ||
| GM | 21.24% |
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
SOLB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SOLB has a worse debt to assets ratio.
2.2 Solvency
SOLB has an Altman-Z score of 1.70. This is a bad value and indicates that SOLB is not financially healthy and even has some risk of bankruptcy.
SOLB has a Altman-Z score of 1.70. This is in the lower half of the industry: SOLB underperforms 74.32% of its industry peers.
The Debt to FCF ratio of SOLB is 7.54, which is on the high side as it means it would take SOLB, 7.54 years of fcf income to pay off all of its debts.
SOLB's Debt to FCF ratio of 7.54 is fine compared to the rest of the industry. SOLB outperforms 63.51% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that SOLB has dependencies on debt financing.
SOLB has a worse Debt to Equity ratio (1.70) than 90.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.44
WACC5.93%
2.3 Liquidity
SOLB has a Current Ratio of 1.41. 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 1.41. This is in the lower half of the industry: SOLB underperforms 64.86% of its industry peers.
SOLB has a Quick Ratio of 1.04. 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 (1.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
SOLB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -93.11%.
Measured over the past years, SOLB shows a very strong growth in Earnings Per Share. The EPS has been growing by 153.65% on average per year.
Looking at the last year, SOLB shows a very negative growth in Revenue. The Revenue has decreased by -50.46% in the last year.
Measured over the past years, SOLB shows a very negative growth in Revenue. The Revenue has been decreasing by -14.50% on average per year.
EPS 1Y (TTM)-93.11%
EPS 3Y-37.03%
EPS 5Y153.65%
EPS Q2Q%-16.16%
Revenue 1Y (TTM)-50.46%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-9.69%
3.2 Future
The Earnings Per Share is expected to decrease by -2.30% on average over the next years.
SOLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.16% yearly.
EPS Next Y-20.34%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EPS Next 5Y-2.3%
Revenue Next Year-5.28%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.01%
Revenue Next 5Y0.16%
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 7.73, the valuation of SOLB can be described as very cheap.
Based on the Price/Earnings ratio, SOLB is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SOLB to the average of the S&P500 Index (26.11), we can say SOLB is valued rather cheaply.
SOLB is valuated cheaply with a Price/Forward Earnings ratio of 7.94.
Based on the Price/Forward Earnings ratio, SOLB is valued cheaper than 98.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLB is valued cheaper than 85.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SOLB is valued cheaply inside the industry as 95.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
The decent profitability rating of SOLB 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
With a Yearly Dividend Yield of 6.11%, SOLB is a good candidate for dividend investing.
SOLB's Dividend Yield is rather good when compared to the industry average which is at 3.13. SOLB pays more dividend than 93.24% of the companies in the same industry.
SOLB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
5.2 History
The dividend of SOLB decreases each year by -9.89%.
Dividend Growth(5Y)-9.89%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
164.94% of the earnings are spent on dividend by SOLB. This is not a 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.
DP164.94%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EBR:SOLB (12/1/2025, 5:29:49 PM)
28.22
+0.72 (+2.62%)
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 Cap2.99B
Revenue(TTM)4.91B
Net Income(TTM)154.00M
Analysts68.7
Price Target28.76 (1.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
Yearly Dividend2.45
Dividend Growth(5Y)-9.89%
DP164.94%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.12%
Min EPS beat(2)9%
Max EPS beat(2)31.25%
EPS beat(4)3
Avg EPS beat(4)12.33%
Min EPS beat(4)-1.96%
Max EPS beat(4)31.25%
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)-1.52%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-2.19%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)-0.57%
Revenue beat(8)2
Avg Revenue beat(8)-0.66%
Revenue beat(12)5
Avg Revenue beat(12)2.07%
Revenue beat(16)9
Avg Revenue beat(16)7.99%
PT rev (1m)-4.41%
PT rev (3m)-7.14%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-22.54%
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 7.94 | ||
| P/S | 0.61 | ||
| P/FCF | 10.2 | ||
| P/OCF | 5.01 | ||
| P/B | 2.48 | ||
| P/tB | 13.22 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)3.65
EY12.93%
EPS(NY)3.56
Fwd EY12.6%
FCF(TTM)2.77
FCFY9.81%
OCF(TTM)5.63
OCFY19.95%
SpS46.33
BVpS11.36
TBVpS2.13
PEG (NY)N/A
PEG (5Y)0.05
Graham Number30.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 12.8% | ||
| ROCE | 11.39% | ||
| ROIC | 8.54% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 10.74% | ||
| OM | 11.07% | ||
| PM (TTM) | 3.14% | ||
| GM | 21.24% | ||
| FCFM | 5.97% |
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-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 7.54 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 83.47% | ||
| Cap/Sales | 6.18% | ||
| Interest Coverage | 7.76 | ||
| Cash Conversion | 65.78% | ||
| Profit Quality | 190.26% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.7 |
F-Score5
WACC5.93%
ROIC/WACC1.44
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)-93.11%
EPS 3Y-37.03%
EPS 5Y153.65%
EPS Q2Q%-16.16%
EPS Next Y-20.34%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EPS Next 5Y-2.3%
Revenue 1Y (TTM)-50.46%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-9.69%
Revenue Next Year-5.28%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.01%
Revenue Next 5Y0.16%
EBIT growth 1Y-58.33%
EBIT growth 3Y-19.61%
EBIT growth 5Y-11.06%
EBIT Next Year25.32%
EBIT Next 3Y11.93%
EBIT Next 5Y6.12%
FCF growth 1Y-75.88%
FCF growth 3Y-27.42%
FCF growth 5Y-19.2%
OCF growth 1Y-74.87%
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 164.94%.