SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
Europe - EBR:SOLB - BE0003470755 - Common Stock
27.52 EUR
-0.32 (-1.15%)
Overall SOLB gets a fundamental rating of 4 out of 10. We evaluated SOLB against 69 industry peers in the Chemicals industry. While SOLB is still in line with the averages on profitability rating, there are concerns on its financial health. SOLB has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years SOLB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.43%, SOLB is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
With a decent Return On Equity value of 12.80%, SOLB is doing good in the industry, outperforming 73.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.54%, SOLB is in the better half of the industry, outperforming 76.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SOLB is above the industry average of 6.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 12.8% | ||
| ROIC | 8.54% |
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
Looking at the Profit Margin, with a value of 3.14%, SOLB is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
SOLB's Profit Margin has improved in the last couple of years.
SOLB has a better Operating Margin (11.07%) than 76.12% of its industry peers.
SOLB's Operating Margin has improved in the last couple of years.
SOLB's Gross Margin of 21.24% is on the low side compared to the rest of the industry. SOLB is outperformed by 65.67% of its industry peers.
In the last couple of years the Gross Margin of SOLB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.07% | ||
| PM (TTM) | 3.14% | ||
| GM | 21.24% |
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
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 less shares outstanding
Compared to 5 years ago, SOLB has more shares outstanding
SOLB has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that SOLB is in the distress zone and has some risk of bankruptcy.
SOLB has a Altman-Z score of 1.70. This is in the lower half of the industry: SOLB underperforms 70.15% of its industry peers.
The Debt to FCF ratio of SOLB is 7.54, which is on the high side as it means it would take SOLB, 7.54 years of fcf income to pay off all of its debts.
SOLB has a Debt to FCF ratio of 7.54. This is in the better half of the industry: SOLB outperforms 68.66% of its industry peers.
SOLB has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
SOLB has a worse Debt to Equity ratio (1.70) than 91.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.43
WACC5.98%
2.3 Liquidity
A Current Ratio of 1.41 indicates that SOLB should not have too much problems paying its short term obligations.
SOLB has a Current ratio of 1.41. This is in the lower half of the industry: SOLB underperforms 67.16% of its industry peers.
A Quick Ratio of 1.04 indicates that SOLB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.04, SOLB perfoms like the industry average, outperforming 43.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for SOLB have decreased strongly by -93.11% in the last year.
Measured over the past years, SOLB shows a very strong growth in Earnings Per Share. The EPS has been growing by 153.65% on average per year.
Looking at the last year, SOLB shows a very negative growth in Revenue. The Revenue has decreased by -50.46% in the last year.
Measured over the past years, SOLB shows a very negative growth in Revenue. The Revenue has been decreasing by -14.50% on average per year.
EPS 1Y (TTM)-93.11%
EPS 3Y-37.03%
EPS 5Y153.65%
EPS Q2Q%77.78%
Revenue 1Y (TTM)-50.46%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%3.46%
3.2 Future
Based on estimates for the next years, SOLB will show a small growth in Earnings Per Share. The EPS will grow by 1.88% on average per year.
Based on estimates for the next years, SOLB will show a small growth in Revenue. The Revenue will grow by 1.27% on average per year.
EPS Next Y-20.34%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EPS Next 5Y1.88%
Revenue Next Year-5.28%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.01%
Revenue Next 5Y1.27%
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
SOLB is valuated rather expensively with a Price/Earnings ratio of 18.98.
67.16% 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 valuation a bit cheaper than the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 7.74, the valuation of SOLB can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 98.51% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SOLB to the average of the S&P500 Index (34.59), we can say SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLB is valued cheaply inside the industry as 86.57% of the companies are valued more expensively.
95.52% of the companies in the same industry are more expensive than SOLB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.94 | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
SOLB has a very decent profitability rating, which may justify a higher PE ratio.
SOLB's earnings are expected to decrease with -2.32% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.11%, SOLB is a good candidate for dividend investing.
SOLB's Dividend Yield is rather good when compared to the industry average which is at 3.36. SOLB pays more dividend than 89.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SOLB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
5.2 History
The dividend of SOLB decreases each year by -9.89%.
Dividend Growth(5Y)-9.89%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
164.94% of the earnings are spent on dividend by SOLB. This is not a sustainable payout ratio.
DP164.94%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EBR:SOLB (11/14/2025, 7:00:00 PM)
27.52
-0.32 (-1.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners27.77%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.91B
Revenue(TTM)4.91B
Net Income(TTM)154.00M
Analysts68.7
Price Target29.89 (8.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
Yearly Dividend2.45
Dividend Growth(5Y)-9.89%
DP164.94%
Div Incr Years3
Div Non Decr Years4
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)1
Avg Revenue beat(2)5.71%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)13.9%
Revenue beat(4)1
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)13.9%
Revenue beat(8)3
Avg Revenue beat(8)1.15%
Revenue beat(12)6
Avg Revenue beat(12)3.28%
Revenue beat(16)10
Avg Revenue beat(16)8.89%
PT rev (1m)-0.68%
PT rev (3m)-7.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.04%
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-19.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.59 | ||
| P/FCF | 9.94 | ||
| P/OCF | 4.89 | ||
| P/B | 2.42 | ||
| P/tB | 12.89 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)1.45
EY5.27%
EPS(NY)3.56
Fwd EY12.92%
FCF(TTM)2.77
FCFY10.06%
OCF(TTM)5.63
OCFY20.45%
SpS46.33
BVpS11.36
TBVpS2.13
PEG (NY)N/A
PEG (5Y)0.12
Graham Number19.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 12.8% | ||
| ROCE | 11.39% | ||
| ROIC | 8.54% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 10.74% | ||
| OM | 11.07% | ||
| PM (TTM) | 3.14% | ||
| GM | 21.24% | ||
| FCFM | 5.97% |
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%
ROICexgc growth 3Y8.77%
ROICexgc 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 Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 7.54 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 83.47% | ||
| Cap/Sales | 6.18% | ||
| Interest Coverage | 7.76 | ||
| Cash Conversion | 65.78% | ||
| Profit Quality | 190.26% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.7 |
F-Score5
WACC5.98%
ROIC/WACC1.43
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)-93.11%
EPS 3Y-37.03%
EPS 5Y153.65%
EPS Q2Q%77.78%
EPS Next Y-20.34%
EPS Next 2Y-6.73%
EPS Next 3Y-2.32%
EPS Next 5Y1.88%
Revenue 1Y (TTM)-50.46%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%3.46%
Revenue Next Year-5.28%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.01%
Revenue Next 5Y1.27%
EBIT growth 1Y-58.33%
EBIT growth 3Y-19.61%
EBIT growth 5Y-11.06%
EBIT Next Year25.32%
EBIT Next 3Y11.93%
EBIT Next 5Y9.24%
FCF growth 1Y-75.88%
FCF growth 3Y-27.42%
FCF growth 5Y-19.2%
OCF growth 1Y-74.87%
OCF growth 3Y-25.69%
OCF growth 5Y-19.46%
SOLVAY SA / SOLB.BR FAQ
What is the ChartMill fundamental rating of SOLVAY SA (SOLB.BR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SOLB.BR.
Can you provide the valuation status for SOLVAY SA?
ChartMill assigns a valuation rating of 8 / 10 to SOLVAY SA (SOLB.BR). This can be considered as Undervalued.
What is the profitability of SOLB stock?
SOLVAY SA (SOLB.BR) has a profitability rating of 6 / 10.
What is the earnings growth outlook for SOLVAY SA?
The Earnings per Share (EPS) of SOLVAY SA (SOLB.BR) is expected to decline by -20.34% in the next year.
How sustainable is the dividend of SOLVAY SA (SOLB.BR) stock?
The dividend rating of SOLVAY SA (SOLB.BR) is 5 / 10 and the dividend payout ratio is 164.94%.