SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
EBR:SOLB - BE0003470755 - Common Stock
27.48 EUR
+0.18 (+0.66%)
SOLB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Chemicals industry. SOLB has a medium profitability rating, but doesn't score so well on its financial health evaluation. SOLB has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
SOLB had positive earnings in the past year.
SOLB had a positive operating cash flow in the past year.
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
SOLB's Return On Assets of 2.21% is fine compared to the rest of the industry. SOLB outperforms 60.29% of its industry peers.
SOLB has a better Return On Equity (12.19%) than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.43%, SOLB is in the better half of the industry, outperforming 72.06% 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 7.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 12.19% | ||
| ROIC | 8.43% |
ROA(3y)13.55%
ROA(5y)7.71%
ROE(3y)64.09%
ROE(5y)37.45%
ROIC(3y)11.19%
ROIC(5y)8.96%
1.3 Margins
SOLB's Profit Margin of 2.81% is in line compared to the rest of the industry. SOLB outperforms 58.82% of its industry peers.
SOLB's Profit Margin has improved in the last couple of years.
SOLB has a better Operating Margin (10.64%) than 75.00% of its industry peers.
SOLB's Operating Margin has improved in the last couple of years.
SOLB has a Gross Margin of 21.23%. This is in the lower half of the industry: SOLB underperforms 69.12% of its industry peers.
SOLB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.64% | ||
| PM (TTM) | 2.81% | ||
| GM | 21.23% |
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.
SOLB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SOLB has more shares outstanding
Compared to 1 year ago, SOLB has a worse debt to assets ratio.
2.2 Solvency
SOLB has an Altman-Z score of 1.87. This is not the best score and indicates that SOLB is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.87, SOLB is not doing good in the industry: 63.24% of the companies in the same industry are doing better.
SOLB has a debt to FCF ratio of 9.16. This is a negative value and a sign of low solvency as SOLB would need 9.16 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.16, SOLB is doing good in the industry, outperforming 63.24% of the companies in the same industry.
SOLB has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOLB (1.80) is worse than 89.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.38
WACC6.09%
2.3 Liquidity
SOLB has a Current Ratio of 1.33. This is a normal value and indicates that SOLB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.33, SOLB is doing worse than 76.47% of the companies in the same industry.
SOLB has a Quick Ratio of 1.33. This is a bad value and indicates that SOLB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, SOLB is doing worse than 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
SOLB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -94.29%.
Measured over the past years, SOLB shows a very strong growth in Earnings Per Share. The EPS has been growing by 153.72% on average per year.
Looking at the last year, SOLB shows a very negative growth in Revenue. The Revenue has decreased by -57.61% 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)-94.29%
EPS 3Y-37%
EPS 5Y153.72%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-57.61%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-7.71%
3.2 Future
SOLB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.95% yearly.
Based on estimates for the next years, SOLB will show a decrease in Revenue. The Revenue will decrease by -0.04% on average per year.
EPS Next Y-18.61%
EPS Next 2Y-7.07%
EPS Next 3Y-0.64%
EPS Next 5Y1.95%
Revenue Next Year-7.57%
Revenue Next 2Y-1.47%
Revenue Next 3Y-0.01%
Revenue Next 5Y-0.04%
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
A Price/Earnings ratio of 7.21 indicates a rather cheap valuation of SOLB.
SOLB's Price/Earnings ratio is rather cheap when compared to the industry. SOLB is cheaper than 97.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, SOLB is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.78, the valuation of SOLB can be described as very cheap.
Based on the Price/Forward Earnings ratio, SOLB is valued cheaply inside the industry as 98.53% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SOLB to the average of the S&P500 Index (22.69), we can say SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
86.76% 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 cheaply inside the industry as 85.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.97 | ||
| EV/EBITDA | 5.45 |
4.3 Compensation for Growth
The decent profitability rating of SOLB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-7.07%
EPS Next 3Y-0.64%
5. Dividend
5.1 Amount
SOLB has a Yearly Dividend Yield of 6.04%, which is a nice return.
SOLB's Dividend Yield is rather good when compared to the industry average which is at 3.08. SOLB pays more dividend than 94.12% of the companies in the same industry.
SOLB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
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
182.73% of the earnings are spent on dividend by SOLB. This is not a sustainable payout ratio.
DP182.73%
EPS Next 2Y-7.07%
EPS Next 3Y-0.64%
EBR:SOLB (9/5/2025, 7:00:00 PM)
27.48
+0.18 (+0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners26.72%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.91B
Analysts68.7
Price Target30.97 (12.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
Yearly Dividend2.44
Dividend Growth(5Y)-9.94%
DP182.73%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.02%
Min EPS beat(2)9%
Max EPS beat(2)11.03%
EPS beat(4)3
Avg EPS beat(4)10.23%
Min EPS beat(4)-1.96%
Max EPS beat(4)22.86%
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)-3.62%
Min Revenue beat(2)-4.75%
Max Revenue beat(2)-2.48%
Revenue beat(4)0
Avg Revenue beat(4)-2.86%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)-0.96%
Revenue beat(8)2
Avg Revenue beat(8)-1.68%
Revenue beat(12)6
Avg Revenue beat(12)4.24%
Revenue beat(16)10
Avg Revenue beat(16)9.1%
PT rev (1m)-5.4%
PT rev (3m)-10.85%
EPS NQ rev (1m)-13.92%
EPS NQ rev (3m)-19.05%
EPS NY rev (1m)-18.17%
EPS NY rev (3m)-18.17%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.81%
Revenue NY rev (3m)-8.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 7.78 | ||
| P/S | 0.59 | ||
| P/FCF | 11.97 | ||
| P/OCF | 5.28 | ||
| P/B | 2.55 | ||
| P/tB | 17.74 | ||
| EV/EBITDA | 5.45 |
EPS(TTM)3.81
EY13.86%
EPS(NY)3.53
Fwd EY12.85%
FCF(TTM)2.3
FCFY8.35%
OCF(TTM)5.2
OCFY18.94%
SpS46.8
BVpS10.77
TBVpS1.55
PEG (NY)N/A
PEG (5Y)0.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 12.19% | ||
| ROCE | 11.24% | ||
| ROIC | 8.43% | ||
| ROICexc | 9.07% | ||
| ROICexgc | 11.69% | ||
| OM | 10.64% | ||
| PM (TTM) | 2.81% | ||
| GM | 21.23% | ||
| FCFM | 4.9% |
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-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.16 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 87.75% | ||
| Cap/Sales | 6.22% | ||
| Interest Coverage | 7.75 | ||
| Cash Conversion | 62.76% | ||
| Profit Quality | 174.82% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.87 |
F-Score4
WACC6.09%
ROIC/WACC1.38
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)-94.29%
EPS 3Y-37%
EPS 5Y153.72%
EPS Q2Q%-11.54%
EPS Next Y-18.61%
EPS Next 2Y-7.07%
EPS Next 3Y-0.64%
EPS Next 5Y1.95%
Revenue 1Y (TTM)-57.61%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-7.71%
Revenue Next Year-7.57%
Revenue Next 2Y-1.47%
Revenue Next 3Y-0.01%
Revenue Next 5Y-0.04%
EBIT growth 1Y-67.31%
EBIT growth 3Y-19.61%
EBIT growth 5Y-11.06%
EBIT Next Year39.83%
EBIT Next 3Y15.32%
EBIT Next 5Y8.95%
FCF growth 1Y-79.37%
FCF growth 3Y-27.42%
FCF growth 5Y-19.2%
OCF growth 1Y-75.53%
OCF growth 3Y-25.69%
OCF growth 5Y-19.46%