SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
Europe - EBR:SOLB - BE0003470755 - Common Stock
26.88 EUR
-0.04 (-0.15%)
Overall SOLB gets a fundamental rating of 5 out of 10. We evaluated SOLB against 71 industry peers in the Chemicals industry. There are concerns on the financial health of SOLB while its profitability can be described as average. SOLB is cheap, but on the other hand it scores bad on growth.
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.
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
With a Return On Assets value of 2.21%, SOLB perfoms like the industry average, outperforming 57.75% of the companies in the same industry.
SOLB has a Return On Equity of 12.19%. This is in the better half of the industry: SOLB outperforms 73.24% of its industry peers.
The Return On Invested Capital of SOLB (8.43%) is better than 73.24% 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 6.85%.
| 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 56.34% of its industry peers.
SOLB's Profit Margin has improved in the last couple of years.
SOLB has a Operating Margin of 10.64%. This is in the better half of the industry: SOLB outperforms 71.83% of its industry peers.
SOLB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.23%, SOLB is doing worse than 66.20% 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 | 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.
The number of shares outstanding for SOLB has been reduced compared to 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
An Altman-Z score of 1.86 indicates that SOLB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SOLB (1.86) is worse than 61.97% of its industry peers.
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.
SOLB has a Debt to FCF ratio of 9.16. This is in the better half of the industry: SOLB outperforms 61.97% of its industry peers.
A Debt/Equity ratio of 1.80 is on the high side and indicates that SOLB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.80, SOLB is doing worse than 88.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.39
WACC6.05%
2.3 Liquidity
A Current Ratio of 1.33 indicates that SOLB should not have too much problems paying its short term obligations.
SOLB has a Current ratio of 1.33. This is in the lower half of the industry: SOLB underperforms 71.83% of its industry peers.
A Quick Ratio of 0.96 indicates that SOLB may have some problems paying its short term obligations.
SOLB has a Quick ratio (0.96) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for SOLB have decreased strongly by -94.29% in the last year.
SOLB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 153.72% yearly.
Looking at the last year, SOLB shows a very negative growth in Revenue. The Revenue has decreased by -57.61% in the last year.
The Revenue for SOLB have been decreasing by -14.50% on average. This is quite bad
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
The Earnings Per Share is expected to grow by 1.50% on average over the next years.
The Revenue is expected to grow by 0.88% on average over the next years.
EPS Next Y-18.61%
EPS Next 2Y-7.65%
EPS Next 3Y-1.07%
EPS Next 5Y1.5%
Revenue Next Year-5.28%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.01%
Revenue Next 5Y0.88%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 7.06, which 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 95.77% of the companies listed in the same industry.
SOLB is valuated cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.71, 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 97.18% of the companies are valued more expensively.
SOLB is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 7.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLB is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SOLB is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.71 | ||
| EV/EBITDA | 5.4 |
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-7.65%
EPS Next 3Y-1.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.21%, SOLB is a good candidate for dividend investing.
SOLB's Dividend Yield is rather good when compared to the industry average which is at 3.05. 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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 182.73% of its income as dividend. This is not a sustainable payout ratio.
DP182.73%
EPS Next 2Y-7.65%
EPS Next 3Y-1.07%
EBR:SOLB (10/7/2025, 7:00:00 PM)
26.88
-0.04 (-0.15%)
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 Cap2.85B
Analysts67.83
Price Target30.09 (11.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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)-2.85%
PT rev (3m)-9.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.17%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-6.5%
Revenue NY rev (1m)2.48%
Revenue NY rev (3m)-6.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 7.71 | ||
| P/S | 0.57 | ||
| P/FCF | 11.71 | ||
| P/OCF | 5.17 | ||
| P/B | 2.5 | ||
| P/tB | 17.35 | ||
| EV/EBITDA | 5.4 |
EPS(TTM)3.81
EY14.17%
EPS(NY)3.49
Fwd EY12.97%
FCF(TTM)2.3
FCFY8.54%
OCF(TTM)5.2
OCFY19.36%
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 | 1.86 |
F-Score4
WACC6.05%
ROIC/WACC1.39
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-7.65%
EPS Next 3Y-1.07%
EPS Next 5Y1.5%
Revenue 1Y (TTM)-57.61%
Revenue growth 3Y-23.45%
Revenue growth 5Y-14.5%
Sales Q2Q%-7.71%
Revenue Next Year-5.28%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.01%
Revenue Next 5Y0.88%
EBIT growth 1Y-67.31%
EBIT growth 3Y-19.61%
EBIT growth 5Y-11.06%
EBIT Next Year25.32%
EBIT Next 3Y11.93%
EBIT Next 5Y8.81%
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%