Solstice Advanced Materials Inc.
Solstice Advanced Materials Inc. Fundamental Analysis
Solstice Advanced Materials Inc. (SOLS) shows weak financial fundamentals with a PE ratio of 53.87, profit margin of 6.10%, and ROE of 10.08%. The company generates $3.9B in annual revenue with moderate year-over-year growth of 5.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SOLS's fundamental strength across five key dimensions:
Efficiency Score
WeakSOLS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSOLS shows balanced valuation metrics.
Growth Score
ModerateSOLS shows steady but slowing expansion.
Financial Health Score
ModerateSOLS shows balanced financial health with some risks.
Profitability Score
WeakSOLS struggles to sustain strong margins.
Key Financial Metrics
Is SOLS Expensive or Cheap?
P/E Ratio
SOLS trades at 53.87 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SOLS's PEG of -1.93 indicates potential undervaluation.
Price to Book
The market values Solstice Advanced Materials Inc. at 9.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.38 times EBITDA. This signals the market has high growth expectations.
How Well Does SOLS Make Money?
Net Profit Margin
For every $100 in sales, Solstice Advanced Materials Inc. keeps $6.10 as profit after all expenses.
Operating Margin
Core operations generate 18.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.08 in profit for every $100 of shareholder equity.
ROA
Solstice Advanced Materials Inc. generates $4.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Solstice Advanced Materials Inc. generates limited operating cash flow of $287.28M, signaling weaker underlying cash strength.
Free Cash Flow
Solstice Advanced Materials Inc. generates weak or negative free cash flow of $40.76M, restricting financial flexibility.
FCF Per Share
Each share generates $0.26 in free cash annually.
FCF Yield
SOLS converts 0.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How SOLS Stacks Against Its Sector Peers
| Metric | SOLS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.87 | 27.41 | Worse (Expensive) |
| ROE | 10.08% | 859.00% | Weak |
| Net Margin | 6.10% | -120873.00% (disorted) | Weak |
| Debt/Equity | 1.72 | 0.51 | Weak (High Leverage) |
| Current Ratio | 1.39 | 4.80 | Neutral |
| ROA | 4.18% | -3590.00% (disorted) | Weak |
SOLS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Solstice Advanced Materials Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.17%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
2.87%
Industry Style: Cyclical, Commodity, Value
GrowingFCF CAGR
-2.08%
Industry Style: Cyclical, Commodity, Value
Declining