Washington H. Soul Pattinson and Co. (SOL) AI Stock Analysis

• Market Cap: AU$14.65B
• Dividend Yield: 2.83%
• Average Volume (3M): 520.12K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.69
• Revenue Growth: 10.37%
• EPS Growth: -25.81%
• Country: AU
• Employees: 56
• Sector: Financial
• Sector Strength: 70
• Industry: Coal
• EPS (TTM): 0.10
• Shares Outstanding: 379,919,680
• 10 Day Avg. Volume: 433,358
• 30 Day Avg. Volume: 520,124
• PEG Ratio: -1.29
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 21.60
• P/FCF Ratio: 64.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: AU$38.00 ▲(0.48% Upside)

The overall stock score reflects a combination of financial stability and challenges, bearish technical indicators, and a high valuation. The company's strong net profit margins and solid balance sheet are offset by declining revenue and operational profitability. Technical analysis suggests bearish momentum, while the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility for long-term strategic investments.

Net Profit Margin

A high net profit margin suggests efficient cost management and profitability, which can support sustainable shareholder returns and reinvestment.

Diversified Revenue Streams

Diversified revenue streams from investments reduce risk and enhance potential returns, supporting long-term financial stability and growth.

Negative Factors

Declining Revenue

Declining revenue growth poses a challenge to maintaining profitability and may impact the company's ability to invest in future growth opportunities.

Operational Profitability Challenges

Negative EBIT margins suggest operational inefficiencies, which could hinder the company's ability to improve profitability and compete effectively.

Declining Free Cash Flow Growth

Declining free cash flow growth limits the company's ability to fund operations, invest in growth, and return capital to shareholders, impacting long-term financial health.

Washington H. Soul Pattinson and Co. Business Overview & Revenue Model

Company Description

Washington H. Soul Pattinson and Company Limited, an investment company, engages in investing various industries and asset classes in Australia. It operates through Strategic Portfolio, Large Caps Portfolio, Emerging Companies Portfolio, Private Equity Portfolio, Structured Yield Portfolio, and Property Portfolio segments. The company focuses on creating capital growth along with steadily increasing dividends through disciplined and long-term investing. It invests in listed equities, private equity and venture capital, property, and structured credit and cash. Washington H. Soul Pattinson and Company Limited was founded in 1872 and is based in Sydney, Australia.

How the Company Makes Money

Washington H. Soul Pattinson makes money through multiple revenue streams derived from its investment activities. The company generates income primarily from dividends received from its equity investments in various companies, as well as interest from fixed-income securities in its portfolio. Additionally, SOL benefits from capital gains realized when it sells investments at a profit. The company's strategy includes holding a diversified range of investments, which mitigates risk and enhances potential returns. Key revenue contributions come from its stakes in listed companies, such as Telstra and New Hope Corporation, while strategic partnerships with these entities can lead to collaborative opportunities that further enhance its financial performance. Overall, the consistent focus on quality investments and a long-term growth strategy underpins SOL's revenue model.

Washington H. Soul Pattinson and Co. Financial Statement Overview

Summary

The company faces challenges with declining revenue and operational profitability, as indicated by negative EBIT margins. Despite this, it maintains strong net profit margins and a solid balance sheet with low leverage. Cash flow management shows mixed results, with declining free cash flow growth but efficient cash generation relative to net income. Overall, the company demonstrates financial stability but needs to address revenue and operational challenges to enhance its financial performance.

Income Statement

The income statement shows a significant decline in revenue growth, with a negative growth rate of -54.46% in the most recent year. Gross profit margin is moderate at 25.64%, but the net profit margin is high at 59.37%, indicating strong profitability despite revenue declines. However, the EBIT margin is negative, suggesting operational challenges. EBITDA margin remains strong at 93.61%, highlighting effective cost management.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.11, indicating conservative leverage. Return on equity is modest at 3.87%, reflecting moderate profitability on shareholder investments. The equity ratio is strong, suggesting a solid capital structure with equity financing.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth at -65.93%. The operating cash flow to net income ratio is low at 0.28, indicating potential cash flow challenges. However, the free cash flow to net income ratio is healthy at 62.67%, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.41B	613.40M	557.60M	362.90M	2.56B	1.07B
Gross Profit	957.60M	157.30M	154.60M	108.37M	1.53B	535.38M
EBITDA	658.70M	574.20M	568.40M	237.82M	1.25B	471.69M
Net Income	364.20M	364.20M	498.80M	690.72M	-12.94M	273.20M
Balance Sheet
Total Assets	11.18B	11.18B	10.40B	9.80B	9.71B	7.64B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.16B	743.50M	1.33B	1.08B	1.01B
Total Debt	1.01B	1.01B	765.90M	436.94M	547.90M	1.17B
Total Liabilities	1.77B	1.77B	1.40B	1.06B	1.25B	2.48B
Stockholders Equity	9.41B	9.41B	8.99B	8.72B	8.45B	4.09B
Cash Flow
Free Cash Flow	205.80M	205.80M	255.70M	596.24M	1.01B	333.16M
Operating Cash Flow	328.40M	328.40M	429.30M	773.54M	1.19B	514.72M
Investing Cash Flow	-468.90M	-467.10M	-301.80M	-454.80M	-485.72M	-413.71M
Financing Cash Flow	117.70M	115.90M	-178.20M	-513.51M	-814.52M	162.93M

Washington H. Soul Pattinson and Co. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SOL, the sentiment is Positive. The current price of 37.82 is below the 20-day moving average (MA) of 38.07, above the 50-day MA of 37.05, and below the 200-day MA of 38.89, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 38.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SOL.

Washington H. Soul Pattinson and Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YAL	73 Outperform	AU$7.63B	7.98	11.04%	11.73%	-8.45%	-24.30%
NHC	71 Outperform	AU$3.80B	8.74	17.04%	8.48%	-1.53%	-7.57%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WHC	67 Neutral	AU$7.24B	11.67	11.40%	1.92%	52.51%	82.60%
SMR	63 Neutral	AU$2.71B	704.65	0.15%	7.32%	-18.98%	-99.05%
SOL	50 Neutral	AU$14.65B	34.42	3.98%	2.83%	10.37%	-25.81%
CRN	50 Neutral	AU$678.96M	-1.30	-36.13%	4.79%	-23.91%	-352.91%

Washington H. Soul Pattinson and Co. Corporate Events

Soul Patts Ceases to Be Substantial Holder in Peninsula Energy

Washington H. Soul Pattinson and Company Limited has lodged a notice indicating it has ceased to be a substantial holder in Peninsula Energy Limited, with the change in status effective from 29 December 2025. The filing clarifies that while there has been a change in certain technical or indirect relevant interests held through associated entities, Soul Patts’ direct relevant interest in the related entity EQT remains unchanged at 4.13%, signalling an adjustment in its voting power profile rather than a wholesale exit from all associated positions, which may slightly alter its influence over Peninsula Energy’s shareholder base and governance dynamics.

The most recent analyst rating on (AU:SOL) stock is a Hold with a A$38.00 price target. To see the full list of analyst forecasts on Washington H. Soul Pattinson and Co. stock, see the AU:SOL Stock Forecast page.

Vanguard Ceases to Be Substantial Shareholder in Washington H. Soul Pattinson

Vanguard Group has notified Washington H. Soul Pattinson and Company Limited that it has ceased to be a substantial shareholder in the Australian investment company. According to the filing under the Corporations Act, Vanguard’s aggregate holding has fallen to 4.973% of the company’s voting power, dropping below the 5% threshold that defines a substantial holding, a change that may slightly alter the company’s institutional investor mix but does not indicate any change in associations or governance ties.

The most recent analyst rating on (AU:SOL) stock is a Hold with a A$38.00 price target. To see the full list of analyst forecasts on Washington H. Soul Pattinson and Co. stock, see the AU:SOL Stock Forecast page.

Washington H. Soul Pattinson Issues New Performance Rights

Washington H. Soul Pattinson and Company Limited announced the issuance of 330,342 unquoted performance rights as part of an employee incentive scheme. This move reflects the company’s commitment to aligning employee interests with long-term corporate goals, potentially enhancing operational performance and stakeholder value.

The most recent analyst rating on (AU:SOL) stock is a Hold with a A$38.00 price target. To see the full list of analyst forecasts on Washington H. Soul Pattinson and Co. stock, see the AU:SOL Stock Forecast page.

Soul Patts Ceases Substantial Holding in Bailador Technology Investments

Washington H. Soul Pattinson and Company Limited has announced that it ceased to be a substantial holder in Bailador Technology Investments Limited as of December 4, 2025. This change reflects a shift in the company’s investment portfolio, potentially impacting its strategic positioning and signaling a reevaluation of its interests in the technology sector.

The most recent analyst rating on (AU:SOL) stock is a Hold with a A$38.00 price target. To see the full list of analyst forecasts on Washington H. Soul Pattinson and Co. stock, see the AU:SOL Stock Forecast page.

Washington H. Soul Pattinson Joins S&P/ASX 50 Index in December Rebalance

S&P Dow Jones Indices has announced the quarterly rebalance of the S&P/ASX Indices, effective December 22, 2025. Washington H. Soul Pattinson and Company Limited will be added to the S&P/ASX 50 Index, reflecting its strengthened market position. This inclusion signifies a positive development for the company, potentially enhancing its visibility and attractiveness to investors.

The most recent analyst rating on (AU:SOL) stock is a Hold with a A$38.00 price target. To see the full list of analyst forecasts on Washington H. Soul Pattinson and Co. stock, see the AU:SOL Stock Forecast page.

Washington H. Soul Pattinson and Co. Adjusts Investment in Symal Group

Washington H. Soul Pattinson and Co. has announced that it has ceased to be a substantial holder in Symal Group Limited as of December 1, 2025. This change reflects a shift in the company’s investment strategy, potentially impacting its influence in the market and its stakeholders. The announcement highlights the company’s ongoing adjustments in its portfolio, which may affect its market positioning and strategic direction.

The most recent analyst rating on (AU:SOL) stock is a Hold with a A$38.00 price target. To see the full list of analyst forecasts on Washington H. Soul Pattinson and Co. stock, see the AU:SOL Stock Forecast page.

Soul Patts Announces 2026 Financial Calendar

Washington H. Soul Pattinson and Company Limited has announced its financial calendar for 2026, detailing key dates for stakeholders. The announcement includes the dates for the half-year results and interim dividend announcement on March 26, the full-year results and final dividend announcement on September 24, and the Annual General Meeting on November 27. These dates are crucial for investors and stakeholders to stay informed about the company’s financial performance and strategic decisions.

The most recent analyst rating on (AU:SOL) stock is a Hold with a A$38.00 price target. To see the full list of analyst forecasts on Washington H. Soul Pattinson and Co. stock, see the AU:SOL Stock Forecast page.