SOL SPA (SOL.MI) Stock Fundamental Analysis
BIT:SOL - Euronext Milan - IT0001206769 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to SOL. SOL was compared to 66 industry peers in the Chemicals industry. SOL scores excellent on profitability, but there are some minor concerns on its financial health. SOL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SOL was profitable.
SOL had a positive operating cash flow in the past year.
SOL had positive earnings in each of the past 5 years.
SOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SOL (6.91%) is better than 83.33% of its industry peers.
SOL has a Return On Equity of 14.37%. This is amongst the best in the industry. SOL outperforms 83.33% of its industry peers.
With an excellent Return On Invested Capital value of 9.55%, SOL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
SOL had an Average Return On Invested Capital over the past 3 years of 9.86%. This is above the industry average of 6.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.91% | ||
| ROE | 14.37% | ||
| ROIC | 9.55% |
ROA(3y)7.4%
ROA(5y)7.14%
ROE(3y)15.45%
ROE(5y)15.08%
ROIC(3y)9.86%
ROIC(5y)9.24%
1.3 Margins
The Profit Margin of SOL (9.17%) is better than 81.82% of its industry peers.
SOL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.67%, SOL belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
SOL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 74.97%, SOL belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
In the last couple of years the Gross Margin of SOL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.67% | ||
| PM (TTM) | 9.17% | ||
| GM | 74.97% |
OM growth 3Y6.63%
OM growth 5Y6.24%
PM growth 3Y4.46%
PM growth 5Y10.95%
GM growth 3Y0.25%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
SOL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SOL has about the same amount of shares outstanding.
SOL has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for SOL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.19 indicates that SOL is not in any danger for bankruptcy at the moment.
SOL has a better Altman-Z score (4.19) than 84.85% of its industry peers.
The Debt to FCF ratio of SOL is 14.66, which is on the high side as it means it would take SOL, 14.66 years of fcf income to pay off all of its debts.
SOL's Debt to FCF ratio of 14.66 is in line compared to the rest of the industry. SOL outperforms 53.03% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that SOL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, SOL is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.66 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.12
WACC8.53%
2.3 Liquidity
SOL has a Current Ratio of 2.18. This indicates that SOL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.18, SOL is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
SOL has a Quick Ratio of 1.92. This is a normal value and indicates that SOL is financially healthy and should not expect problems in meeting its short term obligations.
SOL's Quick ratio of 1.92 is amongst the best of the industry. SOL outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
SOL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.31%.
Measured over the past years, SOL shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.51% on average per year.
The Revenue has grown by 8.29% in the past year. This is quite good.
The Revenue has been growing by 12.23% on average over the past years. This is quite good.
EPS 1Y (TTM)1.31%
EPS 3Y18.14%
EPS 5Y24.51%
EPS Q2Q%9.98%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%10.58%
3.2 Future
The Earnings Per Share is expected to grow by 8.55% on average over the next years. This is quite good.
SOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y10.98%
EPS Next 2Y9.63%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue Next Year7.64%
Revenue Next 2Y7.25%
Revenue Next 3Y7.12%
Revenue Next 5Y5.14%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.52 indicates a quite expensive valuation of SOL.
The rest of the industry has a similar Price/Earnings ratio as SOL.
Compared to an average S&P500 Price/Earnings ratio of 25.91, SOL is valued at the same level.
A Price/Forward Earnings ratio of 23.75 indicates a rather expensive valuation of SOL.
The rest of the industry has a similar Price/Forward Earnings ratio as SOL.
SOL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 23.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SOL.
The rest of the industry has a similar Price/Free Cash Flow ratio as SOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.76 | ||
| EV/EBITDA | 11.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SOL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SOL may justify a higher PE ratio.
PEG (NY)2.51
PEG (5Y)1.12
EPS Next 2Y9.63%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
SOL has a yearly dividend return of 0.89%, which is pretty low.
SOL's Dividend Yield is slightly below the industry average, which is at 3.12.
With a Dividend Yield of 0.89, SOL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
On average, the dividend of SOL grows each year by 16.74%, which is quite nice.
Dividend Growth(5Y)16.74%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SOL pays out 25.58% of its income as dividend. This is a sustainable payout ratio.
The dividend of SOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.58%
EPS Next 2Y9.63%
EPS Next 3Y8.55%
BIT:SOL (5/23/2025, 5:35:15 PM)
44.85
+0.35 (+0.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners21.09%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.07B
Analysts83.33
Price Target44.37 (-1.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.42
Dividend Growth(5Y)16.74%
DP25.58%
Div Incr Years0
Div Non Decr Years0
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.57%
PT rev (3m)3.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-27.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-29.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 23.75 | ||
| P/S | 2.53 | ||
| P/FCF | 85.76 | ||
| P/OCF | 13.67 | ||
| P/B | 3.96 | ||
| P/tB | 5.71 | ||
| EV/EBITDA | 11.86 |
EPS(TTM)1.63
EY3.63%
EPS(NY)1.89
Fwd EY4.21%
FCF(TTM)0.52
FCFY1.17%
OCF(TTM)3.28
OCFY7.31%
SpS17.76
BVpS11.33
TBVpS7.86
PEG (NY)2.51
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.91% | ||
| ROE | 14.37% | ||
| ROCE | 13.75% | ||
| ROIC | 9.55% | ||
| ROICexc | 9.66% | ||
| ROICexgc | 11.75% | ||
| OM | 14.67% | ||
| PM (TTM) | 9.17% | ||
| GM | 74.97% | ||
| FCFM | 2.95% |
ROA(3y)7.4%
ROA(5y)7.14%
ROE(3y)15.45%
ROE(5y)15.08%
ROIC(3y)9.86%
ROIC(5y)9.24%
ROICexc(3y)11.29%
ROICexc(5y)10.84%
ROICexgc(3y)14.14%
ROICexgc(5y)13.44%
ROCE(3y)14.19%
ROCE(5y)13.36%
ROICexcg growth 3Y7.2%
ROICexcg growth 5Y5.88%
ROICexc growth 3Y6.27%
ROICexc growth 5Y5.33%
OM growth 3Y6.63%
OM growth 5Y6.24%
PM growth 3Y4.46%
PM growth 5Y10.95%
GM growth 3Y0.25%
GM growth 5Y-0.73%
F-Score5
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.66 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 159.8% | ||
| Cap/Sales | 15.53% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 75.74% | ||
| Profit Quality | 32.12% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 4.19 |
F-Score5
WACC8.53%
ROIC/WACC1.12
Cap/Depr(3y)142.12%
Cap/Depr(5y)134.91%
Cap/Sales(3y)13.67%
Cap/Sales(5y)13.69%
Profit Quality(3y)37.87%
Profit Quality(5y)46.73%
High Growth Momentum
Growth
EPS 1Y (TTM)1.31%
EPS 3Y18.14%
EPS 5Y24.51%
EPS Q2Q%9.98%
EPS Next Y10.98%
EPS Next 2Y9.63%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue 1Y (TTM)8.29%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%10.58%
Revenue Next Year7.64%
Revenue Next 2Y7.25%
Revenue Next 3Y7.12%
Revenue Next 5Y5.14%
EBIT growth 1Y3.69%
EBIT growth 3Y20.6%
EBIT growth 5Y19.23%
EBIT Next Year39.24%
EBIT Next 3Y16.87%
EBIT Next 5YN/A
FCF growth 1Y-27.14%
FCF growth 3Y1.91%
FCF growth 5Y18.79%
OCF growth 1Y10.16%
OCF growth 3Y15.6%
OCF growth 5Y9.8%