SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
EBR:SOLB - Euronext Brussels - BE0003470755 - Common Stock - Currency: EUR
Taking everything into account, SOLB scores 5 out of 10 in our fundamental rating. SOLB was compared to 65 industry peers in the Chemicals industry. SOLB has a medium profitability rating, but doesn't score so well on its financial health evaluation. SOLB is valued quite cheap, but it does not seem to be growing.
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.
SOLB had positive earnings in 4 of the past 5 years.
In the past 5 years SOLB always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.10%, SOLB is doing good in the industry, outperforming 61.54% of the companies in the same industry.
SOLB has a Return On Equity of 14.50%. This is amongst the best in the industry. SOLB outperforms 83.08% of its industry peers.
SOLB's Return On Invested Capital of 9.39% is fine compared to the rest of the industry. SOLB outperforms 78.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOLB is above the industry average of 6.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 14.5% | ||
| ROIC | 9.39% |
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 better Profit Margin (3.88%) than 63.08% of its industry peers.
In the last couple of years the Profit Margin of SOLB has grown nicely.
SOLB's Operating Margin of 11.43% is fine compared to the rest of the industry. SOLB outperforms 75.38% of its industry peers.
In the last couple of years the Operating Margin of SOLB has grown nicely.
The Gross Margin of SOLB (21.85%) is worse than 66.15% of its industry peers.
SOLB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.43% | ||
| PM (TTM) | 3.88% | ||
| GM | 21.85% |
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
Based on the Altman-Z score of 1.80, we must say that SOLB is in the distress zone and has some risk of bankruptcy.
SOLB has a worse Altman-Z score (1.80) than 66.15% of its industry peers.
SOLB has a debt to FCF ratio of 7.45. This is a slightly negative value and a sign of low solvency as SOLB would need 7.45 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.45, SOLB is doing good in the industry, outperforming 63.08% of the companies in the same industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that SOLB has dependencies on debt financing.
SOLB's Debt to Equity ratio of 1.54 is on the low side compared to the rest of the industry. SOLB is outperformed by 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.54
WACC6.08%
2.3 Liquidity
SOLB has a Current Ratio of 1.38. 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 1.38, SOLB is doing worse than 73.85% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that SOLB should not have too much problems paying its short term obligations.
SOLB has a Quick ratio (1.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for SOLB have decreased strongly by -92.24% in the last year.
The Earnings Per Share has been growing by 153.72% on average over the past years. This is a very strong growth
The Revenue for SOLB has decreased by -63.24% 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 -14.50% on average per year.
EPS 1Y (TTM)-92.24%
EPS 3Y-37%
EPS 5Y153.72%
EPS Q2Q%-24.58%
Revenue 1Y (TTM)-63.24%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-13.56%
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 2.94% on average per year.
Based on estimates for the next years, SOLB will show a small growth in Revenue. The Revenue will grow by 2.22% on average per year.
EPS Next Y-0.54%
EPS Next 2Y3.28%
EPS Next 3Y5.25%
EPS Next 5Y2.94%
Revenue Next Year1.3%
Revenue Next 2Y3.09%
Revenue Next 3Y3.58%
Revenue Next 5Y2.22%
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 cheaply with a Price/Earnings ratio of 7.30.
98.46% of the companies in the same industry are more expensive than SOLB, based on the Price/Earnings ratio.
SOLB is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.58, which indicates a rather cheap valuation of SOLB.
SOLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOLB is cheaper than 98.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 6.58 |
4.2 Price Multiples
90.77% 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 cheaper than 87.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.19 | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
SOLB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y3.28%
EPS Next 3Y5.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.85%, SOLB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.09, SOLB pays a better dividend. On top of this SOLB pays more dividend than 93.85% of the companies listed in the same industry.
SOLB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
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
SOLB pays out 94.92% of its income as dividend. This is not a sustainable payout ratio.
DP94.92%
EPS Next 2Y3.28%
EPS Next 3Y5.25%
EBR:SOLB (6/3/2025, 7:00:00 PM)
28.68
-0.34 (-1.17%)
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 Cap3.04B
Analysts68.33
Price Target34.74 (21.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
Yearly Dividend2.44
Dividend Growth(5Y)-9.94%
DP94.92%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.54%
Min EPS beat(2)-1.96%
Max EPS beat(2)11.03%
EPS beat(4)3
Avg EPS beat(4)8.73%
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)-2.86%
Min Revenue beat(2)-4.75%
Max Revenue beat(2)-0.96%
Revenue beat(4)0
Avg Revenue beat(4)-3%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)-0.96%
Revenue beat(8)3
Avg Revenue beat(8)-0.18%
Revenue beat(12)7
Avg Revenue beat(12)6.6%
Revenue beat(16)11
Avg Revenue beat(16)9.84%
PT rev (1m)0.74%
PT rev (3m)0%
EPS NQ rev (1m)-14%
EPS NQ rev (3m)-13.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)-3.01%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.63%
Revenue NY rev (3m)-3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 6.58 | ||
| P/S | 0.6 | ||
| P/FCF | 10.19 | ||
| P/OCF | 5.15 | ||
| P/B | 2.23 | ||
| P/tB | 8.25 | ||
| EV/EBITDA | 5.18 |
EPS(TTM)3.93
EY13.7%
EPS(NY)4.36
Fwd EY15.21%
FCF(TTM)2.81
FCFY9.81%
OCF(TTM)5.57
OCFY19.43%
SpS47.94
BVpS12.84
TBVpS3.48
PEG (NY)N/A
PEG (5Y)0.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 14.5% | ||
| ROCE | 12.52% | ||
| ROIC | 9.39% | ||
| ROICexc | 10.4% | ||
| ROICexgc | 13.63% | ||
| OM | 11.43% | ||
| PM (TTM) | 3.88% | ||
| GM | 21.85% | ||
| FCFM | 5.87% |
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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 7.45 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 82.25% | ||
| Cap/Sales | 5.75% | ||
| Interest Coverage | 12.34 | ||
| Cash Conversion | 63.1% | ||
| Profit Quality | 151.27% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.8 |
F-Score5
WACC6.08%
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)-92.24%
EPS 3Y-37%
EPS 5Y153.72%
EPS Q2Q%-24.58%
EPS Next Y-0.54%
EPS Next 2Y3.28%
EPS Next 3Y5.25%
EPS Next 5Y2.94%
Revenue 1Y (TTM)-63.24%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-13.56%
Revenue Next Year1.3%
Revenue Next 2Y3.09%
Revenue Next 3Y3.58%
Revenue Next 5Y2.22%
EBIT growth 1Y-70.9%
EBIT growth 3Y-19.61%
EBIT growth 5Y-11.06%
EBIT Next Year39.83%
EBIT Next 3Y15.32%
EBIT Next 5Y9.64%
FCF growth 1Y-69.5%
FCF growth 3Y-27.42%
FCF growth 5Y-19.2%
OCF growth 1Y-69.67%
OCF growth 3Y-25.69%
OCF growth 5Y-19.46%