SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
Europe • Euronext Brussels • EBR:SOLB • BE0003470755
24.66 EUR
-0.18 (-0.72%)
Last: Jan 30, 2026, 11:02 AM
Taking everything into account, SOLB scores 5 out of 10 in our fundamental rating. SOLB was compared to 71 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 is valued quite cheap, 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.
- SOLB had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years SOLB had a positive operating cash flow.
1.2 Ratios
- SOLB has a Return On Assets of 2.43%. This is comparable to the rest of the industry: SOLB outperforms 57.75% of its industry peers.
- The Return On Equity of SOLB (12.80%) is better than 69.01% of its industry peers.
- SOLB has a Return On Invested Capital of 8.40%. This is in the better half of the industry: SOLB outperforms 69.01% of its industry peers.
- SOLB had an Average Return On Invested Capital over the past 3 years of 11.19%. This is above the industry average of 7.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 12.8% | ||
| ROIC | 8.4% |
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
- With a Profit Margin value of 3.14%, SOLB perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
- In the last couple of years the Profit Margin of SOLB has grown nicely.
- The Operating Margin of SOLB (10.89%) is better than 70.42% 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 70.42% of its industry peers.
- SOLB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| 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
- 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.
- 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
- Based on the Altman-Z score of 1.66, we must say that SOLB is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.66, SOLB is doing worse than 74.65% of the companies in the same industry.
- 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's Debt to FCF ratio of 7.54 is fine compared to the rest of the industry. SOLB outperforms 60.56% of its industry peers.
- A Debt/Equity ratio of 1.70 is on the high side and indicates that SOLB has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.70, SOLB is not doing good in the industry: 90.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.37
WACC6.12%
2.3 Liquidity
- SOLB has a Current Ratio of 1.41. This is a normal value and indicates that SOLB is financially healthy and should not expect problems in meeting its short term obligations.
- SOLB has a worse Current ratio (1.41) than 64.79% of its industry peers.
- SOLB has a Quick Ratio of 1.04. This is a normal value and indicates that SOLB is financially healthy and should not expect problems in meeting its short term obligations.
- SOLB has a Quick ratio of 1.04. This is comparable to the rest of the industry: SOLB outperforms 45.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- SOLB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -93.13%.
- The Earnings Per Share has been growing by 153.72% on average over the past years. This is a very strong growth
- SOLB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -50.46%.
- 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)-93.13%
EPS 3Y-37%
EPS 5Y153.72%
EPS Q2Q%-16.16%
Revenue 1Y (TTM)-50.46%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-9.69%
3.2 Future
- Based on estimates for the next years, SOLB will show a decrease in Earnings Per Share. The EPS will decrease by -2.59% on average per year.
- Based on estimates for the next years, SOLB will show a decrease in Revenue. The Revenue will decrease by -0.08% on average per year.
EPS Next Y-20.44%
EPS Next 2Y-15.18%
EPS Next 3Y-5.88%
EPS Next 5Y-2.59%
Revenue Next Year-4.56%
Revenue Next 2Y-2.21%
Revenue Next 3Y-0.48%
Revenue Next 5Y-0.08%
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
- A Price/Earnings ratio of 6.76 indicates a rather cheap valuation of SOLB.
- Compared to the rest of the industry, the Price/Earnings ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 97.18% of the companies listed in the same industry.
- SOLB is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- SOLB is valuated reasonably with a Price/Forward Earnings ratio of 8.38.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 98.59% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. SOLB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.76 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SOLB is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, SOLB is valued cheaper than 97.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.91 | ||
| EV/EBITDA | 5.39 |
4.3 Compensation for Growth
- SOLB has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as SOLB's earnings are expected to decrease with -5.88% in the coming years.
PEG (NY)N/A
PEG (5Y)0.04
EPS Next 2Y-15.18%
EPS Next 3Y-5.88%
5. Dividend
5.1 Amount
- SOLB has a Yearly Dividend Yield of 6.60%, which is a nice return.
- SOLB's Dividend Yield is rather good when compared to the industry average which is at 2.45. SOLB pays more dividend than 92.96% of the companies in the same industry.
- SOLB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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
- 164.94% 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.
DP164.94%
EPS Next 2Y-15.18%
EPS Next 3Y-5.88%
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.
What is the valuation status of SOLVAY SA (SOLB.BR) stock?
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 valuation of SOLVAY SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SOLVAY SA (SOLB.BR) is 6.76 and the Price/Book (PB) ratio is 2.17.
Can you provide the financial health for SOLB stock?
The financial health rating of SOLVAY SA (SOLB.BR) is 3 / 10.