BIT:SOL

Stock Analysis Report

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Executive Summary

SOL S.p.A. engages in the applied research, production, and distribution of industrial, pure, and medicinal gases; and in door-to-door medical care and related medical equipment in Italy and internationally. More Details


Snowflake Analysis

Excellent balance sheet with solid track record.

Share Price & News

How has SOL's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOL is less volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SOL's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

SOL

-1.8%

IT Chemicals

-2.2%

IT Market


1 Year Return

39.2%

SOL

12.0%

IT Chemicals

-11.1%

IT Market

Return vs Industry: SOL exceeded the Italian Chemicals industry which returned 12% over the past year.

Return vs Market: SOL exceeded the Italian Market which returned -11.2% over the past year.


Shareholder returns

SOLIndustryMarket
7 Day1.4%-1.8%-2.2%
30 Day6.6%2.2%0.5%
90 Day23.9%6.3%13.3%
1 Year41.6%39.2%15.7%12.0%-8.3%-11.1%
3 Year42.0%35.5%10.7%-0.1%-3.9%-14.0%
5 Year112.3%96.6%69.0%43.1%25.4%-9.3%

Long-Term Price Volatility Vs. Market

How volatile is SOL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

21.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOL (€14.5) is trading above our estimate of fair value (€11.88)

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


Price To Earnings Ratio

PE vs Industry: SOL is good value based on its PE Ratio (21.1x) compared to the XE Chemicals industry average (24.1x).

PE vs Market: SOL is poor value based on its PE Ratio (21.1x) compared to the Italian market (20.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SOL is overvalued based on its PB Ratio (2.3x) compared to the XE Chemicals industry average (2.1x).


Next Steps

Future Growth

How is SOL forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.0%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SOL has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has SOL performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOL has high quality earnings.

Growing Profit Margin: SOL's current net profit margins (6.6%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: SOL's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: SOL's earnings growth over the past year (26.6%) exceeds its 5-year average (11.8% per year).

Earnings vs Industry: SOL earnings growth over the past year (26.6%) exceeded the Chemicals industry -12%.


Return on Equity

High ROE: SOL's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is SOL's financial position?


Financial Position Analysis

Short Term Liabilities: SOL's short term assets (€553.2M) exceed its short term liabilities (€266.1M).

Long Term Liabilities: SOL's short term assets (€553.2M) exceed its long term liabilities (€411.8M).


Debt to Equity History and Analysis

Debt Level: SOL's debt to equity ratio (70.6%) is considered high.

Reducing Debt: SOL's debt to equity ratio has reduced from 78.5% to 70.6% over the past 5 years.

Debt Coverage: SOL's debt is well covered by operating cash flow (43.2%).

Interest Coverage: SOL's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOL's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.43%).

High Dividend: SOL's dividend (1.21%) is low compared to the top 25% of dividend payers in the Italian market (4.57%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.4%), SOL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.7yrs

Average board tenure


CEO

Aldo Romario (62 yo)

no data

Tenure

€577,460

Compensation

Engineer Aldo Fumagalli Romario has been Chairman of Sol SpA since 1998 and also serves as its Co-Chief Executive Officer and Managing Director. Engineer Romario serves as Honorary Chairman at Business Adv...


CEO Compensation Analysis

Compensation vs Market: Aldo's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD1.69M).

Compensation vs Earnings: Aldo's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Aldo Romario
Chairmanno data€577.46kno data
Marco Annoni
Vice Chairmanno data€577.96kno data
Giulio Romario
Director of Legal & Corporate Business and Directorno data€573.60kno data
Giovanni Annoni
Director of Information Systems & Directorno data€578.24kno data
Maria Annoni
Directorno datano datano data
Giovanni Garegnani
Chairman of Statutory Auditors0.67yrno datano data
Anna Gervasoni
Independent Directorno data€54.60kno data
Maria Boccardo
Independent Directorno data€54.60kno data
Susanna Dorigoni
Independent Directorno data€54.60kno data
Antonella Mansi
Independent Directorno data€54.60kno data
Erwin Paul Rauhe
Independent Director1.67yrsno datano data
Prisca Romario
Director1.67yrsno datano data

1.7yrs

Average Tenure

62yo

Average Age

Experienced Board: SOL's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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

SOL S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SOL S.p.A.
  • Ticker: SOL
  • Exchange: BIT
  • Founded: 1927
  • Industry: Industrial Gases
  • Sector: Materials
  • Market Cap: €1.315b
  • Shares outstanding: 90.70m
  • Website: https://www.solgroup.com

Number of Employees


Location

  • SOL S.p.A.
  • Via Borgazzi, 27
  • Monza
  • Milan
  • 20900
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOLBIT (Borsa Italiana)YesOrdinary SharesITEURJul 1998
QOLBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJul 1998
0NJPLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1998
SOLMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1998

Biography

SOL S.p.A. engages in the applied research, production, and distribution of industrial, pure, and medicinal gases; and in door-to-door medical care and related medical equipment in Italy and internationall...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 20:02
End of Day Share Price2021/01/15 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.