SOLVAY SA (SOLB.BR) Stock Fundamental Analysis
EBR:SOLB - Euronext Brussels - BE0003470755 - Common Stock - Currency: EUR
Taking everything into account, SOLB scores 4 out of 10 in our fundamental rating. SOLB was compared to 68 industry peers in the Chemicals industry. There are concerns on the financial health of SOLB while its profitability can be described as average. SOLB has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year SOLB was profitable.
In the past year SOLB had a positive cash flow from operations.
Of the past 5 years SOLB 4 years were profitable.
Each year in the past 5 years SOLB had a positive operating cash flow.
1.2 Ratios
SOLB's Return On Assets of 3.10% is in line compared to the rest of the industry. SOLB outperforms 58.82% of its industry peers.
SOLB has a better Return On Equity (14.50%) than 80.88% of its industry peers.
SOLB's Return On Invested Capital of 9.39% is fine compared to the rest of the industry. SOLB outperforms 79.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOLB is above the industry average of 6.39%.
| 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's Profit Margin of 3.88% is fine compared to the rest of the industry. SOLB outperforms 60.29% 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 75.00% 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 64.71% of its industry peers.
In the last couple of years the Gross Margin of SOLB has declined.
| 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
SOLB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SOLB has less shares outstanding
The number of shares outstanding for SOLB has been increased compared to 5 years ago.
SOLB has a worse debt/assets ratio than last year.
2.2 Solvency
SOLB has an Altman-Z score of 1.79. This is a bad value and indicates that SOLB is not financially healthy and even has some risk of bankruptcy.
SOLB has a Altman-Z score of 1.79. This is in the lower half of the industry: SOLB underperforms 61.76% 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.
Looking at the Debt to FCF ratio, with a value of 7.45, SOLB is in the better half of the industry, outperforming 63.24% of the companies in the same industry.
SOLB has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
SOLB has a Debt to Equity ratio of 1.54. This is amonst the worse of the industry: SOLB underperforms 86.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.62
WACC5.79%
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.
With a Current ratio value of 1.38, SOLB is not doing good in the industry: 69.12% of the companies in the same industry are doing better.
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 comparable to the rest of the industry.
| 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 -27.78% in the last year.
The Earnings Per Share has been growing slightly by 4.50% on average over the past years.
The Revenue for SOLB has decreased by -62.52% 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 -11.82% on average per year.
EPS 1Y (TTM)-27.78%
EPS 3Y25.07%
EPS 5Y4.5%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-62.52%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%-7.71%
3.2 Future
SOLB is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.19% yearly.
Based on estimates for the next years, SOLB will show a decrease in Revenue. The Revenue will decrease by -1.40% on average per year.
EPS Next Y-66.18%
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
EPS Next 5Y-18.19%
Revenue Next Year-8.62%
Revenue Next 2Y-6.3%
Revenue Next 3Y-3.27%
Revenue Next 5Y-1.4%
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
SOLB is valuated cheaply with a Price/Earnings ratio of 7.35.
Based on the Price/Earnings ratio, SOLB is valued cheaper than 95.59% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.99. SOLB is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.89, 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 94.12% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.36, SOLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 6.89 |
4.2 Price Multiples
89.71% of the companies in the same industry are more expensive than SOLB, based on the Enterprise Value to EBITDA ratio.
SOLB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SOLB is cheaper than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.95 | ||
| EV/EBITDA | 5.07 |
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 -28.81% in the coming years.
PEG (NY)N/A
PEG (5Y)1.63
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
5. Dividend
5.1 Amount
SOLB has a Yearly Dividend Yield of 6.17%, which is a nice return.
Compared to an average industry Dividend Yield of 3.02, SOLB pays a better dividend. On top of this SOLB pays more dividend than 94.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SOLB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.17% |
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
94.92% 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.
DP94.92%
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
EBR:SOLB (8/6/2025, 7:00:00 PM)
28
-0.1 (-0.36%)
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 Cap2.96B
Analysts69.57
Price Target32.74 (16.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.17% |
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)-1.83%
PT rev (3m)-5.06%
EPS NQ rev (1m)-6.67%
EPS NQ rev (3m)-17.25%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-8.06%
Revenue NY rev (1m)-5.15%
Revenue NY rev (3m)-7.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 6.89 | ||
| P/S | 0.58 | ||
| P/FCF | 9.95 | ||
| P/OCF | 5.02 | ||
| P/B | 2.18 | ||
| P/tB | 8.06 | ||
| EV/EBITDA | 5.07 |
EPS(TTM)3.81
EY13.61%
EPS(NY)4.07
Fwd EY14.52%
FCF(TTM)2.81
FCFY10.05%
OCF(TTM)5.57
OCFY19.9%
SpS47.94
BVpS12.84
TBVpS3.48
PEG (NY)N/A
PEG (5Y)1.63
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 | 1.79 |
F-Score5
WACC5.79%
ROIC/WACC1.62
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)-27.78%
EPS 3Y25.07%
EPS 5Y4.5%
EPS Q2Q%-11.54%
EPS Next Y-66.18%
EPS Next 2Y-42.01%
EPS Next 3Y-28.81%
EPS Next 5Y-18.19%
Revenue 1Y (TTM)-62.52%
Revenue growth 3Y-14.72%
Revenue growth 5Y-11.82%
Sales Q2Q%-7.71%
Revenue Next Year-8.62%
Revenue Next 2Y-6.3%
Revenue Next 3Y-3.27%
Revenue Next 5Y-1.4%
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 5Y8.76%
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%