ENXTBR:SOLB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value average 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


Market Performance


7 Day Return

1.8%

ENXTBR:SOLB

0.5%

BE Chemicals

-0.2%

BE Market


1 Year Return

-22.6%

ENXTBR:SOLB

-30.3%

BE Chemicals

-4.8%

BE Market

SOLB outperformed the Chemicals industry which returned -28.8% over the past year.

SOLB underperformed the Market in Belgium which returned -4.3% over the past year.


Share holder returns

SOLBIndustryMarket
7 Day1.8%0.5%-0.2%
30 Day-7.2%-6.8%-3.6%
90 Day4.3%0.6%5.5%
1 Year-20.2%-22.6%-28.7%-30.3%-2.7%-4.8%
3 Year-3.0%-9.7%2.4%-3.6%-5.8%-12.5%
5 Year-11.1%-26.0%10.7%-6.6%21.2%6.0%

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 based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Solvay's share price is below the future cash flow value, and at a moderate discount (> 20%).

Solvay's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Solvay is good value based on earnings compared to the BE Chemicals industry average.

Solvay is good value based on earnings compared to the Belgium market.


Price Based on Expected Growth

Solvay is poor value based on expected growth next year.


Price Based on Value of Assets

Solvay is good value based on assets compared to the BE Chemicals industry average.


Next Steps

Future Growth

How is Solvay expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Solvay's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Solvay's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

Solvay's revenue growth is positive but not above the Belgium market average.

Solvay's earnings growth is positive but not above the Belgium market average.

Solvay's earnings growth is expected to exceed the low risk savings rate of 0.8%.


Earnings per Share Growth Estimates


Future Return on Equity

Solvay is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Solvay performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Solvay has delivered over 20% year on year earnings growth in the past 5 years.

Solvay's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Solvay's 1-year earnings growth is negative, it can't be compared to the BE Chemicals industry average.


Return on Equity

Solvay has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Solvay used its assets less efficiently than the BE Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Solvay has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Solvay's financial position?


Financial Position Analysis

Solvay is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Solvay's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Solvay's level of debt (53.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (40.1% vs 53.1% today).

Debt is well covered by operating cash flow (34.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

4.45%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Solvay's pays a higher dividend yield than the bottom 25% of dividend payers in Belgium (2.27%).

Solvay's dividend is below the markets top 25% of dividend payers in Belgium (4.58%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

What is the CEO of Solvay's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Ilham Kadri (50yo)

0.4yrs

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 ...


Management Age and Tenure

2.6yrs

Average Tenure

55yo

Average Age

The tenure for the Solvay management team is about average.


Board Age and Tenure

8.4yrs

Average Tenure

61yo

Average Age

The tenure for the Solvay board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Vincent Paul Jean De Cuyper (58yo)

    Member of Executive Committee

    • Tenure: 13.6yrs
  • Hua Du (50yo)

    President of the GBU Special Chem & Member of the Executive Committee

    • Tenure: 1.5yrs
  • Pascal Juéry (54yo)

    President of Solvay Essential Chemicals & Member of the Executive Committee

    • Tenure: 5.6yrs
  • Quitterie De Pelleport (42yo)

    Head of Legal & Compliance and Group General Counsel

    • Tenure: 2.6yrs
  • Ilham Kadri (50yo)

    Chairman of the Executive Committee

    • Tenure: 0.4yrs
  • Cécile de Marsac (56yo)

    Group GM of Human Resources & Member of the Executive Committee

    • Tenure: 1.6yrs
  • Karim Hajjar (56yo)

    CFO & Member of the Executive Committee

    • Tenure: 5.8yrs
  • Canet-Teil Cecile

    Group General Manager of Communications

    • Tenure: 3.5yrs
  • Augusto Di Donfrancesco (60yo)

    President of Specialty Polymers & Member of the Executive Committee

    • Tenure: 1.5yrs
  • Geoffroy Raskin

    Head of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Rosemary Thorne (67yo)

    Independent Director

    • Tenure: 5.3yrs
  • Nicolas Boël (57yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: €325.00k
  • Bernard de Laguiche (60yo)

    Non-Executive Director

    • Tenure: 13.6yrs
  • Jean-Marie Solvay de la Hulpe (63yo)

    Non-Independent Director

    • Tenure: 28.6yrs
  • Charles Casimir-Lambert (52yo)

    Independent Director

    • Tenure: 12.3yrs
  • Maria Amparo Moraleda Martinez (55yo)

    Independent Director

    • Tenure: 6.1yrs
  • Hervé d'Eeckenbrugge (62yo)

    Independent Director

    • Tenure: 10.6yrs
  • Evelyn du Monceau (69yo)

    Independent Director

    • Tenure: 9.6yrs
  • Ilham Kadri (50yo)

    Chairman of the Executive Committee

    • Tenure: 0.4yrs
  • Françoise de Viron (64yo)

    Independent Director

    • Tenure: 6.1yrs

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: €9.141b
  • 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
SOLBRSE (Berne Stock Exchange)YesOrdinary SharesCHEURJan 1992
SOLBWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 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 Analysis2019/08/23 20:44
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.