WBAG:SOLB

Stock Analysis Report

Executive Summary

Solvay SA operates as an advanced materials and specialty chemicals worldwide.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Solvay's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOLB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

SOLB

-0.6%

AT Chemicals

-1.3%

AT Market


1 Year Return

-5.3%

SOLB

9.5%

AT Chemicals

3.5%

AT Market

Return vs Industry: SOLB underperformed the Austrian Chemicals industry which returned 9.5% over the past year.

Return vs Market: SOLB underperformed the Austrian Market which returned 3.5% over the past year.


Shareholder returns

SOLBIndustryMarket
7 Day-2.6%-0.6%-1.3%
30 Day0.7%2.9%0.4%
90 Day-9.6%2.9%-1.2%
1 Year-2.5%-5.3%12.9%9.5%7.2%3.5%
3 Yearn/a18.6%7.9%27.3%15.8%
5 Yearn/a30.4%10.9%51.3%30.3%

Price Volatility Vs. Market

How volatile is Solvay's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Solvay undervalued compared to its fair value and its price relative to the market?

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOLB (€94.8) is trading below our estimate of fair value (€158.98)

Significantly Below Fair Value: SOLB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SOLB is poor value based on its PE Ratio (106.3x) compared to the Chemicals industry average (16.3x).

PE vs Market: SOLB is poor value based on its PE Ratio (106.3x) compared to the Austrian market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: SOLB is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: SOLB is good value based on its PB Ratio (1x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

How is Solvay forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLB's forecast earnings growth (20.1% per year) is above the savings rate (-0.1%).

Earnings vs Market: SOLB's earnings (20.1% per year) are forecast to grow faster than the Austrian market (2.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOLB's revenue (3.3% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: SOLB's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOLB's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Solvay performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOLB has a large one-off loss of €918.0M impacting its September 30 2019 financial results.

Growing Profit Margin: SOLB's current net profit margins (0.8%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: SOLB's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: SOLB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SOLB had negative earnings growth (-88.1%) over the past year, making it difficult to compare to the Chemicals industry average (2.5%).


Return on Equity

High ROE: SOLB's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Solvay's financial position?


Financial Position Analysis

Short Term Liabilities: SOLB's short term assets (€6.5B) exceed its short term liabilities (€4.2B).

Long Term Liabilities: SOLB's short term assets (€6.5B) do not cover its long term liabilities (€7.9B).


Debt to Equity History and Analysis

Debt Level: SOLB's debt to equity ratio (47.1%) is considered high.

Reducing Debt: SOLB's debt to equity ratio has increased from 36.8% to 47.1% over the past 5 years.

Debt Coverage: SOLB's debt is well covered by operating cash flow (44.7%).

Interest Coverage: SOLB's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet

Inventory Level: SOLB has a high level of physical assets or inventory.

Debt Coverage by Assets: SOLB's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Solvay's current dividend yield, its reliability and sustainability?

4.02%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.6%markettop25%4.6%industryaverage3.0%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: SOLB's dividend (4.02%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: SOLB's dividend (4.02%) is low compared to the top 25% of dividend payers in the Austrian market (4.58%).


Stability and Growth of Payments

Stable Dividend: SOLB's dividend payments have been volatile in the past 10 years.

Growing Dividend: SOLB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (427.2%), SOLB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SOLB's dividends in 3 years are forecast to be well covered by earnings (45.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Ilham Kadri (50yo)

0.9yrs

Tenure

0

Dr. Ilham Kadri has been Chief Executive Officer and Director at Solvay SA since March 1, 2019. Dr. Kadri was an Executive Officer of Solvay SA since January 1, 2019 until March 1, 2019. Dr. Kadri served a ...


Leadership Team

NamePositionTenureCompensationOwnership
Karim Hajjar
CFO & Member of the Executive Committee6.3yrsno datano data
Vincent Paul Jean De Cuyper
Member of Executive Committee14.1yrsno datano data
Augusto Di Donfrancesco
President of Specialty Polymers & Member of the Executive Committee2yrsno datano data
Hua Du
President of the GBU Special Chem & Member of the Executive Committee2yrsno datano data
Ilham Kadri
Chairman of the Executive Committee0.9yrsno datano data
Hervé Tiberghien
Chief People Officer & Member of Executive Committee0.4yrsno datano data
Geoffroy Raskin
Head of Investor Relations0yrsno datano data
Quitterie De Pelleport
Head of Legal & Compliance and Group General Counsel3.1yrsno datano data
Canet-Teil Cecile
Group General Manager of Communications4yrsno datano data
Sophie Desormière
Group General Manager of Marketing & Sales0yrsno datano data

2.5yrs

Average Tenure

52yo

Average Age

Experienced Management: SOLB's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ilham Kadri
Chairman of the Executive Committee0.9yrsno datano data
Rosemary Thorne
Independent Director5.8yrsno datano data
Nicolas Boël
Chairman7.8yrs€325.00kno data
Bernard de Laguiche
Non-Executive Director14.1yrsno datano data
Jean-Marie Solvay de la Hulpe
Non-Independent Director29.1yrsno datano data
Charles Casimir-Lambert
Independent Director12.8yrsno datano data
Maria Amparo Moraleda Martinez
Independent Director6.6yrsno datano data
Hervé d'Eeckenbrugge
Independent Director11.1yrsno datano data
Evelyn du Monceau
Independent Director10.1yrsno datano data
Françoise de Viron
Independent Director6.6yrsno datano data

8.9yrs

Average Tenure

61yo

Average Age

Experienced Board: SOLB's board of directors are considered experienced (8.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Solvay SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Solvay SA
  • Ticker: SOLB
  • Exchange: WBAG
  • Founded: 1863
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: €9.777b
  • Shares outstanding: 103.15m
  • Website: https://www.solvay.com

Number of Employees


Location

  • Solvay SA
  • Rue de Ransbeek, 310
  • Brussels
  • Brussels
  • 1120
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVYS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SOLBENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJan 1992
SOLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0NZRLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
SOLBBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
SOLBWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
SOLETLX (Eurotlx)YesOrdinary SharesITEURJan 1992
SOLV.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDAug 2010

Biography

Solvay SA operates as an advanced materials and specialty chemicals worldwide. It operates through four segments: Advanced Materials, Advanced Formulations, Performance Chemicals, and Corporate & Business Services. The Advanced Materials segment offers specialty polymers, including aromatic polymers, high barrier polymers, and fluoropolymers for the electronics, automotive, aircraft, and healthcare industries; and composite materials for civil and military aircraft manufacturers, as well as various industrial markets. It also provides special chemicals, such as fluor and rare-earth formulations for automotive, semi-conductor, and lighting applications; and dispersible silica used primarily in various tires. The Advanced Formulations segments develops and produces formulations that alter the properties of liquids for the oil and gas industry; and offers specialty solutions for various industrial applications, and the agricultural and coatings markets. It also provides specialty mining reagents, phosphine-based chemistry, and solutions for stabilization of polymers; and produces vanillin for the flavors and fragrances industries, as well as synthetic intermediates used in pharmaceuticals, agrochemicals, and electronics. The Performance Chemicals segment produces and sells soda ash and sodium bicarbonate primarily to the flat and container glass industries, as well as for use in detergents, agro, and food industries; hydrogen peroxide for use primarily in the paper industry to bleach pulp, as well as chemicals, food, textiles, and environment; and glycerin-based solvent solutions and specialty phenols for use in the production of synthetic resins employed in foundries, construction, and abrasives. The Corporate & Business Service segment sells self-generated secondary energy to third parties, as well as provides energy and business services. The company was founded in 1863 and is headquartered in Brussels, Belgium. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 23:43
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.