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. While SOLB has a great profitability rating, there are quite some concerns on its financial health. SOLB has a bad growth rate and is valued cheaply. SOLB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SOLB had positive earnings in the past year.
In the past year SOLB had a positive cash flow from operations.
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
SOLB has a Return On Assets of 33.59%. This is amongst the best in the industry. SOLB outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 173.38%, SOLB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of SOLB (20.32%) is better than 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 6.48%.
The last Return On Invested Capital (20.32%) for SOLB is above the 3 year average (9.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.59% | ||
| ROE | 173.38% | ||
| ROIC | 20.32% |
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 22.17%. This is amongst the best in the industry. SOLB outperforms 96.55% 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 13.16%, SOLB belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
SOLB's Operating Margin has improved in the last couple of years.
The Gross Margin of SOLB (22.80%) is worse than 63.79% of its industry peers.
SOLB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.16% | ||
| PM (TTM) | 22.17% | ||
| GM | 22.8% |
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.
The number of shares outstanding for SOLB has been increased compared to 1 year ago.
Compared to 5 years ago, SOLB has more shares outstanding
SOLB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.03 indicates that SOLB is not in any danger for bankruptcy at the moment.
The Altman-Z score of SOLB (3.03) is better than 77.59% of its industry peers.
The Debt to FCF ratio of SOLB is 15.22, which is on the high side as it means it would take SOLB, 15.22 years of fcf income to pay off all of its debts.
SOLB has a Debt to FCF ratio (15.22) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that SOLB has dependencies on debt financing.
SOLB has a worse Debt to Equity ratio (1.57) than 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 15.22 | ||
| Altman-Z | 3.03 |
ROIC/WACC3.96
WACC5.13%
2.3 Liquidity
A Current Ratio of 1.37 indicates that SOLB should not have too much problems paying its short term obligations.
SOLB's Current ratio of 1.37 is on the low side compared to the rest of the industry. SOLB is outperformed by 79.31% of its industry peers.
SOLB has a Quick Ratio of 1.02. This is a normal value and indicates that SOLB is financially healthy and should not expect problems in meeting its short term obligations.
SOLB's Quick ratio of 1.02 is on the low side compared to the rest of the industry. SOLB is outperformed by 63.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 |
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.
The Revenue for SOLB has decreased by -29.28% in the past year. This is quite bad
Measured over the past years, SOLB shows a very negative growth in Revenue. The Revenue has been decreasing by -11.82% on average per year.
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y4.5%
EPS Q2Q%-69.72%
Revenue 1Y (TTM)-29.28%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%-57.92%
3.2 Future
The Earnings Per Share is expected to decrease by -17.45% on average over the next years. This is quite bad
SOLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.85% yearly.
EPS Next Y-67.52%
EPS Next 2Y-40.89%
EPS Next 3Y-27.21%
EPS Next 5Y-17.45%
Revenue Next Year-6.11%
Revenue Next 2Y-1.78%
Revenue Next 3Y-0.1%
Revenue Next 5Y0.85%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 2.44, the valuation of SOLB can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 100.00% of the companies listed in the same industry.
SOLB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.19.
Based on the Price/Forward Earnings ratio of 6.98, the valuation of SOLB can be described as very cheap.
SOLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOLB is cheaper than 98.28% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SOLB to the average of the S&P500 Index (24.37), we can say SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.44 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLB is valued cheaply inside the industry as 98.28% of the companies are valued more expensively.
SOLB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOLB is cheaper than 67.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.82 | ||
| EV/EBITDA | 2.56 |
4.3 Compensation for Growth
The excellent 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 -27.21% in the coming years.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-40.89%
EPS Next 3Y-27.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.57%, SOLB is a good candidate for dividend investing.
The stock price of SOLB dropped by -22.30% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
SOLB's Dividend Yield is rather good when compared to the industry average which is at 4.06. SOLB pays more dividend than 84.48% of the companies in the same industry.
SOLB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.57% |
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
11.21% of the earnings are spent on dividend by SOLB. This is a low number and 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.
DP11.21%
EPS Next 2Y-40.89%
EPS Next 3Y-27.21%
SOLVAY SA
EBR:SOLB (1/23/2025, 5:35:15 PM)
29.47
-0.49 (-1.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners29.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.12B
Analysts68.33
Price Target35.06 (18.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.57% |
Yearly Dividend3.95
Dividend Growth(5Y)-0.17%
DP11.21%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.93%
Min EPS beat(2)2.99%
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)-3.13%
Min Revenue beat(2)-3.26%
Max Revenue beat(2)-3.01%
Revenue beat(4)2
Avg Revenue beat(4)0.87%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)6.48%
Revenue beat(8)5
Avg Revenue beat(8)4.2%
Revenue beat(12)9
Avg Revenue beat(12)11.38%
Revenue beat(16)13
Avg Revenue beat(16)11.53%
PT rev (1m)3.25%
PT rev (3m)8.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.44 | ||
| Fwd PE | 6.98 | ||
| P/S | 0.32 | ||
| P/FCF | 21.82 | ||
| P/OCF | 5.05 | ||
| P/B | 2.46 | ||
| P/tB | 11.56 | ||
| EV/EBITDA | 2.56 |
EPS(TTM)12.09
EY41.02%
EPS(NY)4.22
Fwd EY14.33%
FCF(TTM)1.35
FCFY4.58%
OCF(TTM)5.84
OCFY19.81%
SpS93.51
BVpS11.96
TBVpS2.55
PEG (NY)N/A
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.59% | ||
| ROE | 173.38% | ||
| ROCE | 27.09% | ||
| ROIC | 20.32% | ||
| ROICexc | 22.97% | ||
| ROICexgc | 30% | ||
| OM | 13.16% | ||
| PM (TTM) | 22.17% | ||
| GM | 22.8% | ||
| FCFM | 1.44% |
ROA(3y)13.89%
ROA(5y)7.05%
ROE(3y)61.87%
ROE(5y)34.13%
ROIC(3y)9.92%
ROIC(5y)7.92%
ROICexc(3y)10.89%
ROICexc(5y)8.62%
ROICexgc(3y)16.07%
ROICexgc(5y)13.27%
ROCE(3y)13.23%
ROCE(5y)10.56%
ROICexcg growth 3Y31.28%
ROICexcg growth 5Y13.19%
ROICexc growth 3Y44.07%
ROICexc growth 5Y22.18%
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%
F-Score6
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 15.22 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 83.77% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 217.17 | ||
| Cash Conversion | 33.05% | ||
| Profit Quality | 6.51% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 3.03 |
F-Score6
WACC5.13%
ROIC/WACC3.96
Cap/Depr(3y)93.48%
Cap/Depr(5y)69.51%
Cap/Sales(3y)9.63%
Cap/Sales(5y)8.4%
Profit Quality(3y)67.12%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y4.5%
EPS Q2Q%-69.72%
EPS Next Y-67.52%
EPS Next 2Y-40.89%
EPS Next 3Y-27.21%
EPS Next 5Y-17.45%
Revenue 1Y (TTM)-29.28%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%-57.92%
Revenue Next Year-6.11%
Revenue Next 2Y-1.78%
Revenue Next 3Y-0.1%
Revenue Next 5Y0.85%
EBIT growth 1Y-35.4%
EBIT growth 3Y-0.82%
EBIT growth 5Y-7.42%
EBIT Next Year5.23%
EBIT Next 3Y4.59%
EBIT Next 5Y3.02%
FCF growth 1Y-85.67%
FCF growth 3Y6.21%
FCF growth 5Y-0.92%
OCF growth 1Y-65.18%
OCF growth 3Y15.45%
OCF growth 5Y2.13%