SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
EBR:SOLB - Euronext Brussels - BE0003470755 - Common Stock - Currency: EUR
SOLB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Chemicals industry. SOLB has an excellent profitability rating, but there are concerns on its financial health. SOLB is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SOLB was profitable.
In the past year SOLB had a positive cash flow from operations.
SOLB had positive earnings in 4 of the past 5 years.
SOLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.35%, SOLB is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
The Return On Equity of SOLB (16.73%) is better than 88.71% of its industry peers.
SOLB's Return On Invested Capital of 9.41% is amongst the best of the industry. SOLB outperforms 82.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOLB is significantly above the industry average of 6.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 16.73% | ||
| ROIC | 9.41% |
ROA(3y)13.55%
ROA(5y)7.71%
ROE(3y)64.09%
ROE(5y)37.45%
ROIC(3y)11.19%
ROIC(5y)8.96%
1.3 Margins
SOLB has a Profit Margin of 4.37%. This is in the better half of the industry: SOLB outperforms 66.13% of its industry peers.
In the last couple of years the Profit Margin of SOLB has grown nicely.
Looking at the Operating Margin, with a value of 11.75%, SOLB is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
In the last couple of years the Operating Margin of SOLB has grown nicely.
SOLB has a Gross Margin of 22.37%. This is in the lower half of the industry: SOLB underperforms 61.29% of its industry peers.
SOLB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.75% | ||
| PM (TTM) | 4.37% | ||
| GM | 22.37% |
OM growth 3Y5%
OM growth 5Y4.03%
PM growth 3Y-17.12%
PM growth 5Y176.86%
GM growth 3Y-4.43%
GM growth 5Y-3.41%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SOLB is creating value.
The number of shares outstanding for SOLB has been reduced compared to 1 year ago.
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
An Altman-Z score of 1.92 indicates that SOLB is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOLB's Altman-Z score of 1.92 is in line compared to the rest of the industry. SOLB outperforms 45.16% of its industry peers.
SOLB has a debt to FCF ratio of 6.48. This is a slightly negative value and a sign of low solvency as SOLB would need 6.48 years to pay back of all of its debts.
SOLB has a better Debt to FCF ratio (6.48) than 66.13% of its industry peers.
SOLB has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.48, SOLB is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.54
WACC6.13%
2.3 Liquidity
A Current Ratio of 1.30 indicates that SOLB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, SOLB is doing worse than 70.97% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that SOLB may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, SOLB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
SOLB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.78%.
The Earnings Per Share has been growing slightly by 4.50% on average over the past years.
SOLB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -68.16%.
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%220%
Revenue 1Y (TTM)-68.16%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%0.27%
3.2 Future
SOLB is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -17.72% yearly.
Based on estimates for the next years, SOLB will show a decrease in Revenue. The Revenue will decrease by -0.30% on average per year.
EPS Next Y-66.18%
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
EPS Next 5Y-17.72%
Revenue Next Year-8.62%
Revenue Next 2Y-2.5%
Revenue Next 3Y-0.83%
Revenue Next 5Y-0.3%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 2.76, the valuation of SOLB can be described as very cheap.
100.00% of the companies in the same industry are more expensive than SOLB, based on the Price/Earnings ratio.
SOLB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
With a Price/Forward Earnings ratio of 8.21, the valuation of SOLB can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SOLB is valued cheaply inside the industry as 95.16% of the companies are valued more expensively.
SOLB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.76 | ||
| Fwd PE | 8.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLB is valued cheaply inside the industry as 88.71% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 82.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.71 | ||
| EV/EBITDA | 5.32 |
4.3 Compensation for Growth
The decent profitability rating of SOLB may justify a higher PE ratio.
A cheap valuation may be justified as SOLB's earnings are expected to decrease with -28.81% in the coming years.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.22%, SOLB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.07, SOLB pays a better dividend. On top of this SOLB pays more dividend than 90.32% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, SOLB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
5.2 History
The dividend of SOLB decreases each year by -9.94%.
Dividend Growth(5Y)-9.94%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
114.29% of the earnings are spent on dividend by SOLB. This is not a sustainable payout ratio.
SOLB's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP114.29%
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
EBR:SOLB (4/30/2025, 7:00:00 PM)
33.38
-0.34 (-1.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners30.08%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.53B
Analysts68.33
Price Target34.49 (3.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
Yearly Dividend2.44
Dividend Growth(5Y)-9.94%
DP114.29%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.45%
Min EPS beat(2)-1.96%
Max EPS beat(2)22.86%
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)0
Avg Revenue beat(2)-2.11%
Min Revenue beat(2)-3.26%
Max Revenue beat(2)-0.96%
Revenue beat(4)1
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)6.48%
Revenue beat(8)4
Avg Revenue beat(8)1.68%
Revenue beat(12)8
Avg Revenue beat(12)9.4%
Revenue beat(16)12
Avg Revenue beat(16)10.78%
PT rev (1m)-0.73%
PT rev (3m)-1.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.06%
EPS NY rev (1m)-2.53%
EPS NY rev (3m)-3.72%
Revenue NQ rev (1m)-2.4%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.76 | ||
| Fwd PE | 8.21 | ||
| P/S | 0.69 | ||
| P/FCF | 10.71 | ||
| P/OCF | 5.75 | ||
| P/B | 2.64 | ||
| P/tB | 10.39 | ||
| EV/EBITDA | 5.32 |
EPS(TTM)12.09
EY36.22%
EPS(NY)4.07
Fwd EY12.18%
FCF(TTM)3.12
FCFY9.34%
OCF(TTM)5.81
OCFY17.4%
SpS48.46
BVpS12.65
TBVpS3.21
PEG (NY)N/A
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 16.73% | ||
| ROCE | 12.55% | ||
| ROIC | 9.41% | ||
| ROICexc | 10.6% | ||
| ROICexgc | 13.84% | ||
| OM | 11.75% | ||
| PM (TTM) | 4.37% | ||
| GM | 22.37% | ||
| FCFM | 6.43% |
ROA(3y)13.55%
ROA(5y)7.71%
ROE(3y)64.09%
ROE(5y)37.45%
ROIC(3y)11.19%
ROIC(5y)8.96%
ROICexc(3y)12.43%
ROICexc(5y)9.87%
ROICexgc(3y)17.2%
ROICexgc(5y)14.4%
ROCE(3y)14.91%
ROCE(5y)11.94%
ROICexcg growth 3Y8.77%
ROICexcg growth 5Y9.63%
ROICexc growth 3Y18.23%
ROICexc growth 5Y16.44%
OM growth 3Y5%
OM growth 5Y4.03%
PM growth 3Y-17.12%
PM growth 5Y176.86%
GM growth 3Y-4.43%
GM growth 5Y-3.41%
F-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 6.48 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 78.73% | ||
| Cap/Sales | 5.55% | ||
| Interest Coverage | 10.58 | ||
| Cash Conversion | 63.73% | ||
| Profit Quality | 147.32% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 1.92 |
F-Score5
WACC6.13%
ROIC/WACC1.54
Cap/Depr(3y)94.75%
Cap/Depr(5y)76.26%
Cap/Sales(3y)9.62%
Cap/Sales(5y)7.99%
Profit Quality(3y)83.5%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y4.5%
EPS Q2Q%220%
EPS Next Y-66.18%
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
EPS Next 5Y-17.72%
Revenue 1Y (TTM)-68.16%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%0.27%
Revenue Next Year-8.62%
Revenue Next 2Y-2.5%
Revenue Next 3Y-0.83%
Revenue Next 5Y-0.3%
EBIT growth 1Y-75.05%
EBIT growth 3Y-19.61%
EBIT growth 5Y-11.06%
EBIT Next Year44.9%
EBIT Next 3Y16.68%
EBIT Next 5Y9.64%
FCF growth 1Y-61.04%
FCF growth 3Y-27.42%
FCF growth 5Y-19.2%
OCF growth 1Y-67.82%
OCF growth 3Y-25.69%
OCF growth 5Y-19.46%