Solvay SA
Solvay SA Fundamental Analysis
Solvay SA (SLVYY) shows weak financial fundamentals with a PE ratio of 17.89, profit margin of 3.14%, and ROE of 12.21%. The company generates $4.9B in annual revenue with weak year-over-year growth of -14.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 8.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SLVYY's fundamental strength across five key dimensions:
Efficiency Score
WeakSLVYY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSLVYY trades at attractive valuation levels.
Growth Score
WeakSLVYY faces weak or negative growth trends.
Financial Health Score
ModerateSLVYY shows balanced financial health with some risks.
Profitability Score
WeakSLVYY struggles to sustain strong margins.
Key Financial Metrics
Is SLVYY Expensive or Cheap?
P/E Ratio
SLVYY trades at 17.89 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SLVYY's PEG of 1.88 indicates fair valuation.
Price to Book
The market values Solvay SA at 2.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.36 times EBITDA. This is generally considered low.
How Well Does SLVYY Make Money?
Net Profit Margin
For every $100 in sales, Solvay SA keeps $3.14 as profit after all expenses.
Operating Margin
Core operations generate 11.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.21 in profit for every $100 of shareholder equity.
ROA
Solvay SA generates $2.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Solvay SA produces operating cash flow of $595.98M, showing steady but balanced cash generation.
Free Cash Flow
Solvay SA produces free cash flow of $291.99M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.28 in free cash annually.
FCF Yield
SLVYY converts 10.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How SLVYY Stacks Against Its Sector Peers
| Metric | SLVYY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.89 | 27.01 | Better (Cheaper) |
| ROE | 12.21% | 949.00% | Weak |
| Net Margin | 3.14% | -16159.00% (disorted) | Weak |
| Debt/Equity | 1.83 | 0.48 | Weak (High Leverage) |
| Current Ratio | 1.41 | 4.42 | Neutral |
| ROA | 2.43% | -6411.00% (disorted) | Weak |
SLVYY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Solvay SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-55.10%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
377.38%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-66.70%
Industry Style: Cyclical, Commodity, Value
Declining