Solvay
Market Cap
€9.8b
Last Updated
2020/02/23 20:53 UTC
Data Sources
Company Financials +
Executive Summary
Solvay SA operates as an advanced materials and specialty chemicals worldwide.
Rewards
Risk Analysis
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
-2.8%
SOLB
-2.8%
BE Chemicals
-1.8%
BE Market
1 Year Return
-5.5%
SOLB
3.9%
BE Chemicals
8.2%
BE Market
Return vs Industry: SOLB underperformed the Belgian Chemicals industry which returned 3.9% over the past year.
Return vs Market: SOLB underperformed the Belgian Market which returned 8.2% over the past year.
Shareholder returns
| SOLB | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.8% | -2.8% | -1.8% |
| 30 Day | -0.2% | 0.4% | -1.2% |
| 90 Day | -9.7% | -0.2% | -0.4% |
| 1 Year | -2.7%-5.5% | 6.4%3.9% | 10.4%8.2% |
| 3 Year | -8.8%-15.3% | 19.0%11.8% | -4.5%-10.8% |
| 5 Year | -14.1%-28.6% | 27.0%7.7% | -3.1%-14.4% |
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
1 month ago | Simply Wall St
We Think Solvay's (EBR:SOLB) Statutory Profit Might Understate Its Earnings Potential2 months ago | Simply Wall St
Solvay SA (EBR:SOLB) Investors Should Think About This Before Buying It For Its Dividend2 months ago | Simply Wall St
Is Solvay SA's (EBR:SOLB) ROE Of 1.3% Concerning?Valuation
Is Solvay undervalued compared to its fair value and its price relative to the market?
38.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SOLB (€94.78) is trading below our estimate of fair value (€153.65)
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 (26.2x).
PE vs Market: SOLB is poor value based on its PE Ratio (106.3x) compared to the Belgian market (17.2x).
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 BE 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 (0.7%).
Earnings vs Market: SOLB's earnings (20.1% per year) are forecast to grow faster than the Belgian market (8.2% 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 Belgian market (2.8% 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 (10.1%).
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
Current dividend yield vs market & industry
Notable Dividend: SOLB's dividend (4.02%) is higher than the bottom 25% of dividend payers in the Belgian market (2.06%).
High Dividend: SOLB's dividend (4.02%) is low compared to the top 25% of dividend payers in the Belgian market (4.31%).
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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CFO & Member of the Executive Committee | 6.3yrs | no data | no data | |
| Member of Executive Committee | 14.1yrs | no data | no data | |
| President of Specialty Polymers & Member of the Executive Committee | 2yrs | no data | no data | |
| President of the GBU Special Chem & Member of the Executive Committee | 2yrs | no data | no data | |
| Chairman of the Executive Committee | 0.9yrs | no data | no data | |
| Chief People Officer & Member of Executive Committee | 0.4yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Head of Legal & Compliance and Group General Counsel | 3.1yrs | no data | no data | |
| Group General Manager of Communications | 4yrs | no data | no data | |
| Group General Manager of Marketing & Sales | 0yrs | no data | no data |
2.5yrs
Average Tenure
52yo
Average Age
Experienced Management: SOLB's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Executive Committee | 0.9yrs | no data | no data | |
| Independent Director | 5.8yrs | no data | no data | |
| Chairman | 7.8yrs | €325.00k | no data | |
| Non-Executive Director | 14.1yrs | no data | no data | |
| Non-Independent Director | 29.1yrs | no data | no data | |
| Independent Director | 12.8yrs | no data | no data | |
| Independent Director | 6.6yrs | no data | no data | |
| Independent Director | 11.1yrs | no data | no data | |
| Independent Director | 10.1yrs | no data | no data | |
| Independent Director | 6.6yrs | no data | no 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: ENXTBR
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SVYS.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| SOLB | ENXTBR (Euronext Brussels) | Yes | Ordinary Shares | BE | EUR | Jan 1992 |
| SOL | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| 0NZR | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Jan 1992 |
| SOLBB | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Jan 1992 |
| SOLB | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Jan 1992 |
| SOL | ETLX (Eurotlx) | Yes | Ordinary Shares | IT | EUR | Jan 1992 |
| SOLV.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 20:53 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.