SOL SPA (SOL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:SOL - IT0001206769 - Common Stock
49.85 EUR
-0.15 (-0.3%)
We assign a fundamental rating of 6 out of 10 to SOL. SOL was compared to 74 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
SOL had positive earnings in the past year.
In the past year SOL had a positive cash flow from operations.
Each year in the past 5 years SOL has been profitable.
SOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SOL (6.90%) is better than 78.38% of its industry peers.
The Return On Equity of SOL (14.75%) is better than 83.78% of its industry peers.
SOL's Return On Invested Capital of 9.43% is fine compared to the rest of the industry. SOL outperforms 77.03% of its industry peers.
SOL had an Average Return On Invested Capital over the past 3 years of 9.86%. This is above the industry average of 6.48%.
| 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
SOL has a better Profit Margin (9.17%) than 75.68% of its industry peers.
SOL's Profit Margin has improved in the last couple of years.
The Operating Margin of SOL (14.58%) is better than 79.73% of its industry peers.
SOL's Operating Margin has improved in the last couple of years.
The Gross Margin of SOL (74.36%) is better than 98.65% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SOL is still 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.
Compared to 1 year ago, SOL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.24 indicates that SOL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.24, SOL belongs to the best of the industry, outperforming 82.43% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that 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 66.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.24 |
ROIC/WACC1.16
WACC8.14%
2.3 Liquidity
A Current Ratio of 2.29 indicates that SOL has no problem at all paying its short term obligations.
SOL has a better Current ratio (2.29) than 74.32% of its industry peers.
A Quick Ratio of 2.04 indicates that SOL has no problem at all paying its short term obligations.
SOL's Quick ratio of 2.04 is amongst the best of the industry. SOL outperforms 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.79% 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
Looking at the last year, SOL shows a quite strong growth in Revenue. The Revenue has grown by 11.37% in the last year.
Measured over the past years, SOL shows a quite strong growth in Revenue. The Revenue has been growing by 12.23% on average per year.
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
Based on estimates for the next years, SOL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.84% on average per year.
SOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y9.79%
EPS Next 2Y9.92%
EPS Next 3Y8.84%
EPS Next 5YN/A
Revenue Next Year10.91%
Revenue Next 2Y8.99%
Revenue Next 3Y8.39%
Revenue Next 5Y5.14%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SOL is valuated quite expensively with a Price/Earnings ratio of 28.98.
The rest of the industry has a similar Price/Earnings ratio as SOL.
SOL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 24.24, SOL is valued on the expensive side.
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 62.16% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. SOL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 24.24 |
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 | 12.04 |
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)2.96
PEG (5Y)1.18
EPS Next 2Y9.92%
EPS Next 3Y8.84%
5. Dividend
5.1 Amount
SOL has a yearly dividend return of 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 3.15, SOL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, SOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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
SOL pays out 24.08% 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.
DP24.08%
EPS Next 2Y9.92%
EPS Next 3Y8.84%
BIT:SOL (11/28/2025, 7:00:00 PM)
49.85
-0.15 (-0.3%)
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 Cap4.52B
Revenue(TTM)1.70B
Net Income(TTM)156.30M
Analysts77.78
Price Target54.75 (9.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)2.79%
PT rev (3m)5.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 24.24 | ||
| P/S | 2.65 | ||
| P/FCF | N/A | ||
| P/OCF | 18.2 | ||
| P/B | 4.27 | ||
| P/tB | 6.09 | ||
| EV/EBITDA | 12.04 |
EPS(TTM)1.72
EY3.45%
EPS(NY)2.06
Fwd EY4.13%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)2.74
OCFY5.49%
SpS18.8
BVpS11.68
TBVpS8.18
PEG (NY)2.96
PEG (5Y)1.18
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 | 4.24 |
F-Score6
WACC8.14%
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)10.79%
EPS 3Y18.14%
EPS 5Y24.51%
EPS Q2Q%11.5%
EPS Next Y9.79%
EPS Next 2Y9.92%
EPS Next 3Y8.84%
EPS Next 5YN/A
Revenue 1Y (TTM)11.37%
Revenue growth 3Y13.11%
Revenue growth 5Y12.23%
Sales Q2Q%12.12%
Revenue Next Year10.91%
Revenue Next 2Y8.99%
Revenue Next 3Y8.39%
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%
SOL SPA / SOL.MI FAQ
What is the fundamental rating for SOL stock?
ChartMill assigns a fundamental rating of 6 / 10 to SOL.MI.
Can you provide the valuation status for SOL SPA?
ChartMill assigns a valuation rating of 2 / 10 to SOL SPA (SOL.MI). This can be considered as Overvalued.
What is the profitability of SOL stock?
SOL SPA (SOL.MI) has a profitability rating of 8 / 10.
What is the earnings growth outlook for SOL SPA?
The Earnings per Share (EPS) of SOL SPA (SOL.MI) is expected to grow by 9.79% in the next year.
Is the dividend of SOL SPA sustainable?
The dividend rating of SOL SPA (SOL.MI) is 3 / 10 and the dividend payout ratio is 24.08%.