SOLVAY SA (SOLB.BR)
BE0003470755 - Common Stock
Taking everything into account, SOLB scores 6 out of 10 in our fundamental rating. SOLB was compared to 65 industry peers in the Chemicals industry. While SOLB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SOLB is valued quite cheap, while showing a decent growth score. This is a good combination! SOLB also has an excellent dividend rating. These ratings could make SOLB a good candidate for value and dividend investing.
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.
Of the past 5 years SOLB 4 years were profitable.
SOLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOLB has a better Return On Assets (28.44%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 158.12%, SOLB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 27.03%, SOLB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.44% | ||
| ROE | 158.12% | ||
| ROIC | 27.03% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SOLB's Profit Margin of 17.47% is amongst the best of the industry. SOLB outperforms 93.65% of its industry peers.
SOLB's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.23%, SOLB belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
SOLB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 28.60%, SOLB is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Gross Margin of SOLB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.23% | ||
| PM (TTM) | 17.47% | ||
| GM | 28.6% |
OM growth 3Y15.79%
OM growth 5Y4.72%
PM growth 3YN/A
PM growth 5Y37.42%
GM growth 3Y-3.85%
GM growth 5Y-3.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SOLB is creating value.
There is no outstanding debt for SOLB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SOLB has an Altman-Z score of 3.05. This indicates that SOLB is financially healthy and has little risk of bankruptcy at the moment.
SOLB's Altman-Z score of 3.05 is fine compared to the rest of the industry. SOLB outperforms 68.25% of its industry peers.
SOLB has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as SOLB would need 2.59 years to pay back of all of its debts.
The Debt to FCF ratio of SOLB (2.59) is better than 85.71% of its industry peers.
SOLB has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
SOLB has a Debt to Equity ratio of 1.57. This is amonst the worse of the industry: SOLB underperforms 93.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 3.05 |
ROIC/WACC3.7
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.24 indicates that SOLB should not have too much problems paying its short term obligations.
SOLB's Current ratio of 1.24 is on the low side compared to the rest of the industry. SOLB is outperformed by 80.95% of its industry peers.
A Quick Ratio of 0.95 indicates that SOLB may have some problems paying its short term obligations.
With a Quick ratio value of 0.95, SOLB is not doing good in the industry: 65.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
SOLB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.78%.
The Earnings Per Share has been growing slightly by 4.50% on average over the past years.
SOLB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.86%.
The Revenue for SOLB have been decreasing by -11.82% on average. This is quite bad
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y4.5%
EPS growth Q2Q-92.04%
Revenue 1Y (TTM)-28.86%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Revenue growth Q2Q-65.68%
3.2 Future
SOLB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.61% yearly.
SOLB is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.39% yearly.
EPS Next Y-69.27%
EPS Next 2Y-40.39%
EPS Next 3Y-26.02%
EPS Next 5Y3.61%
Revenue Next Year-12.23%
Revenue Next 2Y-5.1%
Revenue Next 3Y-2.28%
Revenue Next 5Y27.39%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 2.52, the valuation of SOLB can be described as very cheap.
Based on the Price/Earnings ratio, SOLB is valued cheaper than 100.00% of the companies in the same industry.
SOLB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.25.
With a Price/Forward Earnings ratio of 8.19, the valuation of SOLB can be described as very reasonable.
SOLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOLB is cheaper than 96.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SOLB to the average of the S&P500 Index (21.67), we can say SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.52 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOLB indicates a rather cheap valuation: SOLB is cheaper than 100.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SOLB is valued cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.77 | ||
| EV/EBITDA | 1.79 |
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 -26.02% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-40.39%
EPS Next 3Y-26.02%
5. Dividend
5.1 Amount
SOLB has a Yearly Dividend Yield of 4.49%, which is a nice return.
SOLB's Dividend Yield is rather good when compared to the industry average which is at 3.11. SOLB pays more dividend than 90.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, SOLB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
5.2 History
The dividend of SOLB has a limited annual growth rate of 0.07%.
Dividend Growth(5Y)0.07%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SOLB pays out 20.58% of its income as dividend. This is a sustainable payout ratio.
SOLB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.58%
EPS Next 2Y-40.39%
EPS Next 3Y-26.02%
SOLVAY SA
EBR:SOLB (4/25/2024, 12:22:09 PM)
30.42
-0.78 (-2.5%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.52 | ||
| Fwd PE | 8.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.44% | ||
| ROE | 158.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.23% | ||
| PM (TTM) | 17.47% | ||
| GM | 28.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y-69.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.86%
Revenue growth 3Y-14.72%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y