ENXTBR:SOLB

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


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

5.4%

SOLB

-6.0%

BE Chemicals

-1.6%

BE Market


1 Year Return

-18.9%

SOLB

1.1%

BE Chemicals

-22.6%

BE Market

Return vs Industry: SOLB underperformed the Belgian Chemicals industry which returned 0.9% over the past year.

Return vs Market: SOLB exceeded the Belgian Market which returned -22.4% over the past year.


Shareholder returns

SOLBIndustryMarket
7 Day5.4%-6.0%-1.6%
30 Day-2.8%-8.0%-2.2%
90 Day-1.8%1.6%6.8%
1 Year-16.1%-18.9%3.8%1.1%-21.4%-22.6%
3 Year-36.7%-41.8%-15.2%-20.6%-25.8%-30.3%
5 Year-25.3%-38.7%14.1%-2.7%-20.5%-29.0%

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

Valuation

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

0.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SOLB (€71.22) is trading above our estimate of fair value (€45.32)

Significantly Below Fair Value: SOLB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SOLB is unprofitable, so we can't compare its PE Ratio to the BE Chemicals industry average.

PE vs Market: SOLB is unprofitable, so we can't compare its PE Ratio to the Belgian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SOLB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOLB is good value based on its PB Ratio (1x) compared to the BE Chemicals industry average (1.3x).


Next Steps

Future Growth

How is Solvay forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

56.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: SOLB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SOLB's is expected to become profitable in the next 3 years.

Revenue vs Market: SOLB's revenue (2.8% per year) is forecast to grow slower than the Belgian market (5.7% per year).

High Growth Revenue: SOLB's revenue (2.8% 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 (7.8%).


Next Steps

Past Performance

How has Solvay performed over the past 5 years?

-22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOLB is currently unprofitable.

Growing Profit Margin: SOLB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOLB is unprofitable, and losses have increased over the past 5 years at a rate of 22.3% per year.

Accelerating Growth: Unable to compare SOLB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SOLB is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-14.2%).


Return on Equity

High ROE: SOLB has a negative Return on Equity (-23.97%), as it is currently unprofitable.


Next Steps

Financial Health

How is Solvay's financial position?


Financial Position Analysis

Short Term Liabilities: SOLB's short term assets (€4.5B) exceed its short term liabilities (€2.8B).

Long Term Liabilities: SOLB's short term assets (€4.5B) do not cover its long term liabilities (€7.1B).


Debt to Equity History and Analysis

Debt Level: SOLB's debt to equity ratio (45.4%) is considered high.

Reducing Debt: SOLB's debt to equity ratio has increased from 36.1% to 45.4% over the past 5 years.

Debt Coverage: SOLB's debt is well covered by operating cash flow (43.1%).

Interest Coverage: SOLB is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

5.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOLB's dividend (5.27%) is higher than the bottom 25% of dividend payers in the Belgian market (2.53%).

High Dividend: SOLB's dividend (5.27%) is low compared to the top 25% of dividend payers in the Belgian market (5.4%).


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: SOLB is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SOLB's dividends in 3 years are forecast to be well covered by earnings (50% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Ilham Kadri (51 yo)

1.42yrs

Tenure

€4,413,155

Compensation

Dr. Ilham Kadri has been Chief Executive Officer and Non independent Director at Solvay SA since March 1, 2019 and serves as its Chairman of Executive Committee. Dr. Kadri was an Executive Officer of Solva ...


CEO Compensation Analysis

Compensation vs Market: Ilham's total compensation ($USD5.19M) is above average for companies of similar size in the Belgian market ($USD2.59M).

Compensation vs Earnings: Insufficient data to compare Ilham's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Ilham Kadri
Chairman of the Executive Committee1.42yrs€4.41mno data
Karim Hajjar
CFO & Member of the Executive Committee6.83yrs€1.71mno data
Vincent Paul Jean De Cuyper
Member of Executive Committee14.58yrs€1.44mno data
Augusto Di Donfrancesco
President of Specialty Polymers & Member of the Executive Committee2.5yrs€1.29mno data
Hua Du
President of the GBU Special Chem & Member of the Executive Committee2.5yrs€1.34mno data
Hervé Tiberghien
Chief People Officer & Member of Executive Committee0.92yr€547.02kno data
Geoffroy Raskin
Head of Investor Relationsno datano datano data
Quitterie De Pelleport
Head of Legal & Compliance and Group General Counsel3.58yrsno datano data
Canet-Teil Cecile
Group General Manager of Communications4.5yrsno datano data
Sophie Desormière
Group General Manager of Marketing & Salesno datano datano data
An Nuyttens
President of The Silica Global Business Unit5.83yrsno datano data
Vincent Kamel
President of Performance Polyamidesno datano datano data

3.6yrs

Average Tenure

54.5yo

Average Age

Experienced Management: SOLB's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ilham Kadri
Chairman of the Executive Committee1.42yrs€4.41mno data
Rosemary Thorne
Independent Director6.25yrs€89.50kno data
Nicolas Boël
Chairman8.25yrs€250.00kno data
Bernard de Laguiche
Non Independent Non Executive Director14.42yrs€95.00kno data
Gilles Michel
Independent Director6.58yrs€90.00kno data
Charles Casimir-Lambert
Non-Independent Director13.25yrsno datano data
Maria Oudeman
Independent Director5.25yrs€111.00kno data
Maria Moraleda Martinez
Independent Director7.08yrs€37.94kno data
Hervé d'Eeckenbrugge
Independent Director11.58yrs€99.00kno data
Evelyn du Monceau
Independent Director10.58yrs€109.00kno data
Françoise de Viron
Independent Director7.08yrs€92.00kno data
Agnès Lemarchand-Poirier
Independent Director3.25yrs€95.00kno data

7.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: SOLB's board of directors are considered experienced (7.1 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: €7.053b
  • Shares outstanding: 103.41m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 21:03
End of Day Share Price2020/08/05 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.