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SOLB

Solvay ENXTBR:SOLB Stock Report

Last Price

€89.68

Market Cap

€9.3b

7D

-2.8%

1Y

-18.0%

Updated

25 May, 2022

Data

Company Financials +
SOLB fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health6/6
Dividends5/6

SOLB Stock Overview

Solvay SA provides advanced materials and specialty chemicals worldwide.

Solvay Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Solvay
Historical stock prices
Current Share Price€89.68
52 Week High€118.65
52 Week Low€78.00
Beta1.4
1 Month Change1.20%
3 Month Change-9.45%
1 Year Change-17.95%
3 Year Change6.03%
5 Year Change-22.96%
Change since IPO223.00%

Recent News & Updates

Shareholder Returns

SOLBBE ChemicalsBE Market
7D-2.8%-1.2%-1.7%
1Y-18.0%-15.2%-4.4%

Return vs Industry: SOLB matched the Belgian Chemicals industry which returned -17.3% over the past year.

Return vs Market: SOLB underperformed the Belgian Market which returned -5.1% over the past year.

Price Volatility

Is SOLB's price volatile compared to industry and market?
SOLB volatility
SOLB Average Weekly Movement6.0%
Chemicals Industry Average Movement5.0%
Market Average Movement4.8%
10% most volatile stocks in BE Market7.8%
10% least volatile stocks in BE Market2.8%

Stable Share Price: SOLB is not significantly more volatile than the rest of Belgian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SOLB's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186321,000Ilham Kadrihttps://www.solvay.com

Solvay SA provides advanced materials and specialty chemicals worldwide. It operates through four segments: Materials, Chemicals, Solutions, and Corporate & Business Services. The 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 aerospace engineered materials market.

Solvay Fundamentals Summary

How do Solvay's earnings and revenue compare to its market cap?
SOLB fundamental statistics
Market Cap€9.29b
Earnings (TTM)€1.18b
Revenue (TTM)€12.52b

7.9x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOLB income statement (TTM)
Revenue€12.52b
Cost of Revenue€9.44b
Gross Profit€3.08b
Other Expenses€1.90b
Earnings€1.18b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)11.35
Gross Margin24.59%
Net Profit Margin9.39%
Debt/Equity Ratio36.6%

How did SOLB perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

34%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


48.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SOLB (€89.68) is trading below our estimate of fair value (€174.38)

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 Price-To-Earnings Ratio (7.9x) compared to the Belgian Chemicals industry average (7.5x).

PE vs Market: SOLB is good value based on its Price-To-Earnings Ratio (7.9x) compared to the Belgian market (11.6x).


Price to Earnings Growth Ratio

PEG Ratio: SOLB is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: SOLB is good value based on its Price-To-Book Ratio (1x) compared to the BE Chemicals industry average (2.3x).


Future Growth

How is Solvay forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLB's forecast earnings growth (2.4% per year) is above the savings rate (1.1%).

Earnings vs Market: SOLB's earnings (2.4% per year) are forecast to grow slower than the Belgian market (15.4% per year).

High Growth Earnings: SOLB's earnings are forecast to grow, but not significantly.

Revenue vs Market: SOLB's revenue (1.8% per year) is forecast to grow faster than the Belgian market (1% per year).

High Growth Revenue: SOLB's revenue (1.8% 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 (11.2%).


Past Performance

How has Solvay performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-23.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SOLB has high quality earnings.

Growing Profit Margin: SOLB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SOLB's earnings have declined by 23.1% per year over the past 5 years.

Accelerating Growth: SOLB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SOLB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (53.1%).


Return on Equity

High ROE: SOLB's Return on Equity (12.7%) is considered low.


Financial Health

How is Solvay's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SOLB's short term assets (€8.5B) exceed its short term liabilities (€6.6B).

Long Term Liabilities: SOLB's short term assets (€8.5B) exceed its long term liabilities (€5.7B).


Debt to Equity History and Analysis

Debt Level: SOLB's net debt to equity ratio (22.3%) is considered satisfactory.

Reducing Debt: SOLB's debt to equity ratio has reduced from 52.1% to 36.6% over the past 5 years.

Debt Coverage: SOLB's debt is well covered by operating cash flow (44.9%).

Interest Coverage: SOLB's interest payments on its debt are well covered by EBIT (15.5x coverage).


Balance Sheet


Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.29%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SOLB's dividend (4.29%) is higher than the bottom 25% of dividend payers in the Belgian market (1.76%).

High Dividend: SOLB's dividend (4.29%) is low compared to the top 25% of dividend payers in the Belgian market (5.76%).


Stability and Growth of Payments

Stable Dividend: SOLB's dividends per share have been stable in the past 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.9%), SOLB's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (44.5%), SOLB's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure


CEO

Ilham Kadri (52 yo)

3.33yrs

Tenure

€4,102,137

Compensation

Dr. Ilham Kadri has been Chief Executive Officer and Non independent 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. Sh...


CEO Compensation Analysis

Compensation vs Market: Ilham's total compensation ($USD4.38M) is above average for companies of similar size in the Belgian market ($USD2.23M).

Compensation vs Earnings: Ilham's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SOLB's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: SOLB's board of directors are considered experienced (8.2 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 employee growth, exchange listings and data sources


Key Information

  • Name: Solvay SA
  • Ticker: SOLB
  • Exchange: ENXTBR
  • Founded: 1863
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Implied Market Cap: €9.294b
  • Shares outstanding: 103.64m
  • Website: https://www.solvay.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.