SOL SPA (SOL) AI Stock Analysis

• Market Cap: €4.28B
• Dividend Yield: 0.72%
• Average Volume (3M): 40.11K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.53
• Revenue Growth: 8.29%
• EPS Growth: 1.35%
• Country: IT
• Employees: 7,200
• Sector: Utilities
• Sector Strength: 74
• Industry: Chemicals
• EPS (TTM): 1.63
• Shares Outstanding: 90,700,000
• 10 Day Avg. Volume: 32,666
• 30 Day Avg. Volume: 40,107
• PEG Ratio: 0.25
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.87
• 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: 3.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: €53.00 ▲(12.29%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 S.p.A. engages in the applied research, production, and marketing of technical and medical gases; and in home medical assistance and related medical equipment in Italy and internationally. The company offers technical and medical gases, including oxygen, nitrogen, argon, hydrogen, carbon and sulphur dioxide, acetylene, nitrous oxide, gas mixtures, high purity gases, food gases, and gaseous and liquid helium; gas for electronics; and ammonia and combustible gases for industrial use. It also provides home oxygen therapy, home mechanical ventilation, and aerosol therapy services, as well as the diagnosis and treatment of respiratory sleep disorders; services for artificial nutrition, insulin therapy with pumps, and immunotherapy, as well as services for the treatment of pain and Parkinson's disease; home healthcare and social care services; telemedicine and digital services; and healthcare aids. In addition, it provides medical devices; training services; InfoHealth SOLution, a web platform that allows to control plans, coordinate, and manage the activities; electromedical equipment services; hospital hygiene and environmental monitoring services; and ambulance management services. Further, it designs, constructs, and manages bio banks; distribution of medical and technical gases; produces and sells hydroelectric power; offers pre-and post-natal diagnostic screening services; produces and sells diagnostic systems; researches, develops, and markets products for research, diagnosis and clinical application in the hospital, environmental, veterinary and food sectors; and bioshipping services, as well as provides transfer, storage, and handling services of biological samples. Its products are used in the chemical, electronics, steel, metal, and food industries, as well as in environmental protection, and research and healthcare sectors. The company was founded in 1927 and is headquartered in Monza, Italy. SOL S.p.A. is a subsidiary of Gas and Technologies World BV.

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 a robust financial profile with strong growth in revenue and profitability. The company maintains a healthy balance sheet with moderate leverage and strong equity levels. Cash flow generation is solid, supporting ongoing investments and operational needs. Despite high capital expenditures, the company's financial health remains strong with sustainable growth and profitability metrics.

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
EBITDA	391.08M	372.51M	319.04M	255.41M	250.82M
Net Income	147.70M	145.73M	133.69M	89.55M	103.05M
Balance Sheet
Total Assets	2.14B	1.94B	1.72B	1.44B	1.41B
Cash, Cash Equivalents and Short-Term Investments	244.14M	216.65M	134.64M	146.47M	269.18M
Total Debt	573.61M	620.54M	461.36M	378.98M	445.26M
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: Neutral
• Last Price: 47.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SOL, the sentiment is Neutral. The current price of 47.2 is below the 20-day moving average (MA) of 47.20, above the 50-day MA of 43.60, and above the 200-day MA of 38.06, indicating a neutral trend. The MACD of 0.91 indicates Positive momentum. The RSI at 56.94 is Neutral, neither overbought nor oversold. The STOCH value of 36.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:SOL.

SOL SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOL	73 Outperform	€4.28B	28.99	15.10%	0.72%	8.29%	1.35%
Sector *	64 Neutral	€7.11B	6.45	-0.43%	4.01%	6.59%	-20.04%
0N54		€7.15B	8.64	16.17%	3.81%	―	―
0MHD		€4.33B	12.47	13.68%	4.67%	―	―
0N4J		€9.69B	39.68	2.21%	5.69%	―	―
0MUN		€3.34B	11.83	8.81%	4.93%	―	―
I10		€7.27B	12.95	20.21%	5.32%	―	―