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 69 industry peers in the Chemicals industry. While SOL has a great profitability rating, there are some minor concerns on its financial health. SOL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SOL had positive earnings in the past year.
In the past year SOL had a positive cash flow from operations.
In the past 5 years SOL has always been profitable.
In the past 5 years SOL always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.91%, SOL belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
SOL has a better Return On Equity (14.37%) than 79.41% of its industry peers.
SOL has a Return On Invested Capital of 9.55%. This is amongst the best in the industry. SOL outperforms 83.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOL is above the industry average of 6.84%.
| 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
SOL's Profit Margin of 9.17% is fine compared to the rest of the industry. SOL outperforms 77.94% of its industry peers.
In the last couple of years the Profit Margin of SOL has grown nicely.
With an excellent Operating Margin value of 14.67%, SOL belongs to the best of the industry, outperforming 83.82% of the companies in the same industry.
In the last couple of years the Operating Margin of SOL has grown nicely.
With an excellent Gross Margin value of 74.97%, SOL belongs to the best of the industry, outperforming 98.53% 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
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.
SOL has about the same amout of shares outstanding than it did 5 years ago.
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.
Looking at the Altman-Z score, with a value of 4.36, SOL belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
SOL has a debt to FCF ratio of 14.66. This is a negative value and a sign of low solvency as SOL would need 14.66 years to pay back of 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 54.41% of its industry peers.
SOL has a Debt/Equity ratio of 0.64. This is a neutral value indicating SOL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, SOL is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 14.66 | ||
| Altman-Z | 4.36 |
ROIC/WACC1.16
WACC8.2%
2.3 Liquidity
A Current Ratio of 2.18 indicates that SOL has no problem at all paying its short term obligations.
SOL has a Current ratio of 2.18. This is in the better half of the industry: SOL outperforms 67.65% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.92, SOL belongs to the top of the industry, outperforming 83.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.31% over the past year.
The Earnings Per Share has been growing by 24.51% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, SOL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.55% on average per year.
The Revenue is expected to grow by 5.14% on average over the next years.
EPS Next Y10.98%
EPS Next 2Y9.63%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue Next Year9.8%
Revenue Next 2Y8.34%
Revenue Next 3Y7.81%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.60, which means the current valuation is very expensive for SOL.
SOL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.51. SOL is around the same levels.
A Price/Forward Earnings ratio of 25.55 indicates a quite expensive valuation of SOL.
SOL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SOL is more expensive than 60.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.09, SOL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.6 | ||
| Fwd PE | 25.55 |
4.2 Price Multiples
SOL's Enterprise Value to EBITDA ratio is in line with the industry average.
SOL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92.26 | ||
| EV/EBITDA | 12.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SOL may justify a higher PE ratio.
PEG (NY)2.7
PEG (5Y)1.21
EPS Next 2Y9.63%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, SOL is not a good candidate for dividend investing.
SOL's Dividend Yield is slightly below the industry average, which is at 3.05.
With a Dividend Yield of 0.80, SOL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
25.58% 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.
DP25.58%
EPS Next 2Y9.63%
EPS Next 3Y8.55%
BIT:SOL (8/8/2025, 5:35:30 PM)
48.25
-0.2 (-0.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners19.42%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.38B
Analysts82.86
Price Target51.68 (7.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)6.67%
PT rev (3m)16.48%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.6 | ||
| Fwd PE | 25.55 | ||
| P/S | 2.72 | ||
| P/FCF | 92.26 | ||
| P/OCF | 14.71 | ||
| P/B | 4.26 | ||
| P/tB | 6.14 | ||
| EV/EBITDA | 12.64 |
EPS(TTM)1.63
EY3.38%
EPS(NY)1.89
Fwd EY3.91%
FCF(TTM)0.52
FCFY1.08%
OCF(TTM)3.28
OCFY6.8%
SpS17.76
BVpS11.33
TBVpS7.86
PEG (NY)2.7
PEG (5Y)1.21
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 | 4.36 |
F-Score5
WACC8.2%
ROIC/WACC1.16
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 Year9.8%
Revenue Next 2Y8.34%
Revenue Next 3Y7.81%
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%