Solvay (ENXTBR:SOLB) - Share price, News & Analysis

SOLB fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	2/6
Financial Health	6/6
Dividends	5/6

SOLB Stock Overview

Solvay SA provides advanced materials and specialty chemicals worldwide.

Rewards

Trading at 48.6% below our estimate of its fair value

Earnings are forecast to grow 2.37% per year

Became profitable this year

Pays a reliable dividend of 4.29%

Risk Analysis

No risks detected for SOLB from our risk checks.

Solvay Competitors

Johnson & Johnson

NYSE:JNJ

US$472.7b

Roche Holding

SWX:ROG

CHF271.3b

Reliance Industries

NSEI:RELIANCE

₹16.6t

Thermo Fisher Scientific

NYSE:TMO

US$209.1b

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
Beta	1.4
1 Month Change	1.20%
3 Month Change	-9.45%
1 Year Change	-17.95%
3 Year Change	6.03%
5 Year Change	-22.96%
Change since IPO	223.00%

Shareholder Returns

	SOLB	BE Chemicals	BE 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 Movement	6.0%
Chemicals Industry Average Movement	5.0%
Market Average Movement	4.8%
10% most volatile stocks in BE Market	7.8%
10% least volatile stocks in BE Market	2.8%

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

Founded	Employees	CEO	Website
1863	21,000	Ilham Kadri	https://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

Is SOLB overvalued?

See Fair Value and valuation analysis

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 Margin	24.59%
Net Profit Margin	9.39%
Debt/Equity Ratio	36.6%

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31