SOL SPA (SOL.MI) Stock Fundamental Analysis
Europe - BIT:SOL - IT0001206769 - Common Stock
52.3 EUR
-0.1 (-0.19%)
Taking everything into account, SOL scores 6 out of 10 in our fundamental rating. SOL was compared to 66 industry peers in the Chemicals industry. While SOL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, SOL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SOL had positive earnings in the past year.
SOL had a positive operating cash flow in the past year.
SOL had positive earnings in each of the past 5 years.
Each year in the past 5 years SOL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SOL (6.90%) is better than 80.30% of its industry peers.
Looking at the Return On Equity, with a value of 14.75%, SOL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.43%, SOL belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SOL is above the industry average of 7.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 14.75% | ||
| ROIC | 9.43% |
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
With a decent Profit Margin value of 9.17%, SOL is doing good in the industry, outperforming 78.79% of the companies in the same industry.
SOL's Profit Margin has improved in the last couple of years.
SOL has a better Operating Margin (14.58%) than 81.82% of its industry peers.
In the last couple of years the Operating Margin of SOL has grown nicely.
SOL's Gross Margin of 74.36% is amongst the best of the industry. SOL outperforms 98.48% of its industry peers.
SOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.58% | ||
| PM (TTM) | 9.17% | ||
| GM | 74.36% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SOL is creating some value.
The number of shares outstanding for SOL remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SOL has about the same amount of shares outstanding.
SOL has a better debt/assets ratio than last year.
2.2 Solvency
SOL has an Altman-Z score of 4.36. This indicates that SOL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.36, SOL belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
SOL has a Debt/Equity ratio of 0.70. This is a neutral value indicating SOL is somewhat dependend on debt financing.
SOL has a Debt to Equity ratio of 0.70. This is in the lower half of the industry: SOL underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.36 |
ROIC/WACC1.14
WACC8.24%
2.3 Liquidity
SOL has a Current Ratio of 2.29. 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 2.29, SOL is in the better half of the industry, outperforming 71.21% of the companies in the same industry.
SOL has a Quick Ratio of 2.04. This indicates that SOL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SOL (2.04) is better than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
SOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.79%, which is quite good.
The Earnings Per Share has been growing by 24.51% on average over the past years. This is a very strong growth
SOL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.37%.
The Revenue has been growing by 12.23% on average over the past years. This is quite good.
EPS 1Y (TTM)10.79%
EPS 3Y18.14%
EPS 5Y24.51%
EPS Q2Q%11.5%
Revenue 1Y (TTM)11.37%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%12.12%
3.2 Future
SOL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.80% yearly.
SOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y12.17%
EPS Next 2Y10.03%
EPS Next 3Y8.8%
EPS Next 5YN/A
Revenue Next Year11.34%
Revenue Next 2Y9.25%
Revenue Next 3Y8.73%
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
SOL is valuated quite expensively with a Price/Earnings ratio of 30.41.
Compared to the rest of the industry, the Price/Earnings ratio of SOL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.57, SOL is valued at the same level.
The Price/Forward Earnings ratio is 25.38, which means the current valuation is very expensive for SOL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOL indicates a slightly more expensive valuation: SOL is more expensive than 63.64% of the companies listed in the same industry.
SOL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.41 | ||
| Fwd PE | 25.38 |
4.2 Price Multiples
SOL's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.6 |
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.
SOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)1.24
EPS Next 2Y10.03%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
SOL has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 3.14, SOL is paying slightly less dividend.
With a Dividend Yield of 0.76, SOL pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of SOL is nicely growing with an annual growth rate of 16.74%!
Dividend Growth(5Y)16.74%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
24.08% of the earnings are spent on dividend by SOL. This is a low number and sustainable payout ratio.
The dividend of SOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.08%
EPS Next 2Y10.03%
EPS Next 3Y8.8%
BIT:SOL (10/23/2025, 1:40:11 PM)
52.3
-0.1 (-0.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners21.03%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.74B
Revenue(TTM)1.70B
Net Income(TTM)156.30M
Analysts80
Price Target53.27 (1.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.42
Dividend Growth(5Y)16.74%
DP24.08%
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)0%
PT rev (3m)5.51%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.07%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-15.84%
Revenue NY rev (3m)3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.41 | ||
| Fwd PE | 25.38 | ||
| P/S | 2.78 | ||
| P/FCF | N/A | ||
| P/OCF | 19.1 | ||
| P/B | 4.48 | ||
| P/tB | 6.39 | ||
| EV/EBITDA | 12.6 |
EPS(TTM)1.72
EY3.29%
EPS(NY)2.06
Fwd EY3.94%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)2.74
OCFY5.24%
SpS18.8
BVpS11.68
TBVpS8.18
PEG (NY)2.5
PEG (5Y)1.24
Graham Number21.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 14.75% | ||
| ROCE | 13.56% | ||
| ROIC | 9.43% | ||
| ROICexc | 10.96% | ||
| ROICexgc | 13.59% | ||
| OM | 14.58% | ||
| PM (TTM) | 9.17% | ||
| GM | 74.36% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y7.2%
ROICexgc 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-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 156.86% | ||
| Cap/Sales | 14.98% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 60.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 4.36 |
F-Score6
WACC8.24%
ROIC/WACC1.14
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)10.79%
EPS 3Y18.14%
EPS 5Y24.51%
EPS Q2Q%11.5%
EPS Next Y12.17%
EPS Next 2Y10.03%
EPS Next 3Y8.8%
EPS Next 5YN/A
Revenue 1Y (TTM)11.37%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%12.12%
Revenue Next Year11.34%
Revenue Next 2Y9.25%
Revenue Next 3Y8.73%
Revenue Next 5Y5.14%
EBIT growth 1Y7.54%
EBIT growth 3Y20.6%
EBIT growth 5Y19.23%
EBIT Next Year42.88%
EBIT Next 3Y17.9%
EBIT Next 5YN/A
FCF growth 1Y-108.3%
FCF growth 3Y1.91%
FCF growth 5Y18.79%
OCF growth 1Y-11.74%
OCF growth 3Y15.6%
OCF growth 5Y9.8%