SOL SPA (SOL) AI Stock Analysis

• Market Cap: €4.31B
• Dividend Yield: 0.83%
• Average Volume (3M): 39.85K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.53
• Revenue Growth: 8.29%
• EPS Growth: 1.35%
• Country: IT
• Employees: 7,200
• Sector: Utilities
• Sector Strength: 80
• Industry: Chemicals
• EPS (TTM): 1.63
• Shares Outstanding: 90,700,000
• 10 Day Avg. Volume: 45,567
• 30 Day Avg. Volume: 39,849
• PEG Ratio: N/A
• Price to Book (P/B): 3.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.59
• 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: €49.00
• Price Target Upside: 3.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: €53.00 ▲(11.46%Upside)

SOL SPA's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth and profitability. Technical analysis indicates a strong upward trend, though overbought signals suggest caution. The valuation reflects a high P/E ratio, indicating potential overvaluation, counterbalanced by a modest dividend yield. No additional insights from earnings calls or corporate events were available.

SOL SPA Business Overview & Revenue Model

Company Description

SOL SPA (SOL) is a multinational company operating primarily in the industrial gas and healthcare sectors. The company provides a wide range of products and services, including the production and distribution of industrial, medical, and specialty gases. It also offers integrated services and technologies for the homecare, hospital, and healthcare industries, catering to both public and private sector clients.

How the Company Makes Money

SOL SPA generates revenue through multiple streams, primarily from the sale of industrial and medical gases. The company supplies these gases to various industries, including healthcare, manufacturing, and food processing. Additionally, SOL earns income from its homecare services, which include providing respiratory assistance and other medical equipment to patients at home. The company also benefits from long-term contracts with hospitals and healthcare providers for the supply of medical gases and related services. Strategic partnerships and investments in innovative technologies further enhance their revenue potential in both established and emerging markets.

SOL SPA Financial Statement Overview

Summary

SOL SPA exhibits robust financial performance with strong revenue and profit growth, an efficient balance sheet with moderate leverage, and solid cash flow generation despite high capital expenditures.

Income Statement

SOL SPA has demonstrated strong revenue growth, with a consistent increase from €904.31 million in 2019 to €1.61 billion in 2024, showing a CAGR of approximately 12.12%. The gross profit margin improved significantly, notably 72.37% in 2024, indicating efficient cost management. Net profit margins are stable, maintaining around 9.17% in 2024. EBIT and EBITDA margins are strong, reflecting healthy operational performance with EBIT margin at 14.73% and EBITDA margin at 24.28% in 2024.

Balance Sheet

The balance sheet of SOL SPA shows a stable financial position with a debt-to-equity ratio of 0.56 in 2024, indicating moderate leverage. The equity ratio is healthy at 48.04%, suggesting a strong equity base. Return on Equity (ROE) is solid at 14.37%, reflecting efficient use of equity to generate profits.

Cash Flow

SOL SPA's cash flow statements reveal a positive trend, with operating cash flow increasing to €297.49 million in 2024. Free cash flow remains positive, albeit slightly reduced to €47.43 million due to higher capital expenditures. The operating cash flow to net income ratio is approximately 2.01, indicating strong cash generation capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.61B	1.49B	1.38B	1.11B	973.83M
	Gross Profit
1.17B	641.49M	504.01M	483.93M	458.53M
	EBIT
237.18M	227.13M	192.46M	135.77M	139.99M
	EBITDA
391.08M	372.51M	319.04M	255.41M	250.82M
	Net Income Common Stockholders
147.70M	145.73M	133.69M	89.55M	103.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
244.14M	216.65M	134.64M	146.47M	269.18M
	Total Assets
2.14B	1.94B	1.72B	1.44B	1.41B
	Total Debt
573.61M	620.54M	461.36M	378.98M	445.26M
	Net Debt
342.02M	403.90M	326.71M	239.34M	176.08M
	Total Liabilities
1.06B	965.54M	855.95M	723.00M	751.43M
	Stockholders Equity
1.03B	928.61M	820.62M	698.26M	635.67M
Cash Flow		Free Cash Flow
47.43M	65.11M	53.74M	44.81M	59.12M
	Operating Cash Flow
297.49M	270.06M	214.92M	192.56M	199.35M
	Investing Cash Flow
-266.37M	-246.69M	-252.30M	-229.52M	-127.75M
	Financing Cash Flow
-7.88M	52.42M	30.34M	-93.53M	27.38M

SOL SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SOL, the sentiment is Positive. The current price of 47.55 is above the 20-day moving average (MA) of 44.41, above the 50-day MA of 40.14, and above the 200-day MA of 37.15, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 81.27 is Negative, neither overbought nor oversold. The STOCH value of 82.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:SOL.

SOL SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IG	79 Outperform	€6.89B	12.25	20.21%	5.55%	-3.34%	8.88%
A2A	77 Outperform	€7.20B	8.73	16.17%	4.35%	2.73%	6.02%
SOL	73 Outperform	€4.31B	29.20	15.10%	0.83%	8.29%	1.35%
ACE	69 Neutral	€4.63B	13.35	13.68%	4.04%	-2.19%	14.21%
IRE	69 Neutral	€3.50B	12.29	8.81%	4.38%	9.09%	16.49%
Sector *	64 Neutral	$8.53B	10.25	4.70%	4.38%	4.14%	-13.04%