SOLVAY SA (SOLB.BR)
BE0003470755 - Common Stock
Overall SOLB gets a fundamental rating of 6 out of 10. We evaluated SOLB against 63 industry peers in the Chemicals industry. SOLB has an excellent profitability rating, but there are some minor concerns on its financial health. SOLB is cheap, but on the other hand it scores bad on growth. These ratings could make SOLB a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year SOLB was profitable.
SOLB had a positive operating cash flow in the past year.
Of the past 5 years SOLB 4 years were profitable.
Each year in the past 5 years SOLB had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 35.85%, SOLB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 175.04%, SOLB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SOLB has a Return On Invested Capital of 30.44%. This is amongst the best in the industry. SOLB outperforms 100.00% of its industry peers.
SOLB had an Average Return On Invested Capital over the past 3 years of 9.92%. This is above the industry average of 7.81%.
The 3 year average ROIC (9.92%) for SOLB is below the current ROIC(30.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.85% | ||
| ROE | 175.04% | ||
| ROIC | 30.44% |
ROA(3y)13.89%
ROA(5y)7.05%
ROE(3y)61.87%
ROE(5y)34.13%
ROIC(3y)9.92%
ROIC(5y)7.92%
1.3 Margins
SOLB has a Profit Margin of 18.03%. This is amongst the best in the industry. SOLB outperforms 93.55% of its industry peers.
SOLB's Profit Margin has improved in the last couple of years.
SOLB has a Operating Margin of 14.43%. This is amongst the best in the industry. SOLB outperforms 85.48% of its industry peers.
In the last couple of years the Operating Margin of SOLB has grown nicely.
SOLB has a Gross Margin (25.98%) which is comparable to the rest of the industry.
SOLB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.43% | ||
| PM (TTM) | 18.03% | ||
| GM | 25.98% |
OM growth 3Y16.3%
OM growth 5Y4.99%
PM growth 3YN/A
PM growth 5Y37.42%
GM growth 3Y-3.85%
GM growth 5Y-3.11%
2. Health
2.1 Basic Checks
SOLB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SOLB has more shares outstanding
SOLB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SOLB is higher compared to a year ago.
2.2 Solvency
SOLB has an Altman-Z score of 3.78. This indicates that SOLB is financially healthy and has little risk of bankruptcy at the moment.
SOLB has a Altman-Z score of 3.78. This is amongst the best in the industry. SOLB outperforms 80.65% of its industry peers.
The Debt to FCF ratio of SOLB is 2.87, which is a good value as it means it would take SOLB, 2.87 years of fcf income to pay off all of its debts.
SOLB's Debt to FCF ratio of 2.87 is amongst the best of the industry. SOLB outperforms 85.48% of its industry peers.
SOLB has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
SOLB's Debt to Equity ratio of 1.40 is on the low side compared to the rest of the industry. SOLB is outperformed by 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 2.87 | ||
| Altman-Z | 3.78 |
ROIC/WACC5.64
WACC5.4%
2.3 Liquidity
A Current Ratio of 1.28 indicates that SOLB should not have too much problems paying its short term obligations.
The Current ratio of SOLB (1.28) is worse than 83.87% of its industry peers.
SOLB has a Quick Ratio of 1.28. This is a bad value and indicates that SOLB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SOLB (0.96) is worse than 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for SOLB have decreased strongly by -27.78% in the last year.
SOLB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.50% yearly.
SOLB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.64%.
SOLB shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.82% yearly.
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y4.5%
EPS Q2Q%-51.57%
Revenue 1Y (TTM)-13.64%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%-64.02%
3.2 Future
The Earnings Per Share is expected to decrease by -18.90% on average over the next years. This is quite bad
Based on estimates for the next years, SOLB will show a small growth in Revenue. The Revenue will grow by 0.37% on average per year.
EPS Next Y-67.77%
EPS Next 2Y-39.38%
EPS Next 3Y-25.74%
EPS Next 5Y-18.9%
Revenue Next Year-8.51%
Revenue Next 2Y-2.65%
Revenue Next 3Y-0.74%
Revenue Next 5Y0.37%
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
The Price/Earnings ratio is 2.75, which indicates a rather cheap valuation of SOLB.
Based on the Price/Earnings ratio, SOLB is valued cheaper than 100.00% of the companies in the same industry.
SOLB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
With a Price/Forward Earnings ratio of 7.49, the valuation of SOLB can be described as very cheap.
98.39% of the companies in the same industry are more expensive than SOLB, based on the Price/Forward Earnings ratio.
SOLB is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.75 | ||
| Fwd PE | 7.49 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than SOLB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SOLB is valued cheaper than 95.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.34 | ||
| EV/EBITDA | 1.86 |
4.3 Compensation for Growth
The excellent profitability rating of SOLB may justify a higher PE ratio.
SOLB's earnings are expected to decrease with -25.74% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-39.38%
EPS Next 3Y-25.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.98%, SOLB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.67, SOLB pays a better dividend. On top of this SOLB pays more dividend than 87.10% of the companies listed in the same industry.
SOLB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of SOLB decreases each year by -0.17%.
Dividend Growth(5Y)-0.17%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
SOLB pays out 16.91% of its income as dividend. This is 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.
DP16.91%
EPS Next 2Y-39.38%
EPS Next 3Y-25.74%
SOLVAY SA
EBR:SOLB (7/26/2024, 7:00:00 PM)
33.26
-0.16 (-0.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.75 | ||
| Fwd PE | 7.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.85% | ||
| ROE | 175.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.43% | ||
| PM (TTM) | 18.03% | ||
| GM | 25.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y
EPS Q2Q%
EPS Next Y-67.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.64%
Revenue growth 3Y-14.72%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y