SOL SPA (SOL) AI Stock Analysis

• Market Cap: €4.45B
• Dividend Yield: 0.81%
• Average Volume (3M): 31.19K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.58
• Revenue Growth: 11.37%
• EPS Growth: 10.82%
• Country: IT
• Employees: 7,200
• Sector: Services
• Sector Strength: N/A
• Industry: Chemicals
• EPS (TTM): 0.92
• Shares Outstanding: 90,700,000
• 10 Day Avg. Volume: 35,913
• 30 Day Avg. Volume: 31,190
• PEG Ratio: 18.36
• Price to Book (P/B): 3.28
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 71.04
• 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: €53.75
• Price Target Upside: 11.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €58.00 ▲(19.96% Upside)

SOL SPA demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in its overall score. The technical analysis indicates a positive trend, though valuation metrics suggest the stock may be overvalued. The absence of earnings call data and notable corporate events means these factors do not influence the score.

SOL SPA Business Overview & Revenue Model

Company Description

SOL SPA (SOL) is a wellness and beauty company that specializes in providing a wide range of spa services, including massages, facials, body treatments, and holistic therapies. The company focuses on promoting relaxation, rejuvenation, and overall wellness through its state-of-the-art facilities and skilled practitioners. SOL operates in the health and wellness sector, catering to both individual clients and corporate partnerships, and is committed to using high-quality, natural products in its treatments.

How the Company Makes Money

SOL generates revenue primarily through its service offerings, which include various spa treatments and wellness programs. The company charges clients for individual services or packages tailored to specific needs. In addition to direct service sales, SOL also benefits from retailing premium skincare and wellness products used during treatments, providing an additional revenue stream. Corporate partnerships, such as collaborations with hotels and wellness retreats, allow SOL to expand its client base and generate consistent revenue through exclusive service agreements. Furthermore, the company may offer membership programs that provide recurring income from loyal customers seeking regular spa services.

SOL SPA Financial Statement Overview

Summary

SOL SPA exhibits a robust financial profile with strong revenue growth 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, SOL SPA'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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.61B	1.49B	1.38B	1.11B	973.83M
Gross Profit	331.52M	1.17B	641.49M	290.04M	250.18M	458.53M
EBITDA	402.20M	391.08M	372.51M	319.04M	255.41M	250.82M
Net Income	155.63M	147.70M	145.73M	133.69M	89.55M	103.05M
Balance Sheet
Total Assets	2.27B	2.14B	1.94B	1.72B	1.44B	1.41B
Cash, Cash Equivalents and Short-Term Investments	258.30M	244.14M	220.15M	147.43M	139.64M	275.48M
Total Debt	733.99M	573.61M	620.54M	461.36M	460.40M	521.20M
Total Liabilities	1.16B	1.06B	965.54M	855.95M	723.00M	751.43M
Stockholders Equity	1.06B	1.03B	928.61M	820.62M	698.26M	635.67M
Cash Flow
Free Cash Flow	26.35M	47.43M	65.11M	53.74M	44.81M	59.12M
Operating Cash Flow	248.37M	297.49M	270.06M	214.92M	192.56M	199.35M
Investing Cash Flow	-266.93M	-266.37M	-246.69M	-252.30M	-229.52M	-127.75M
Financing Cash Flow	121.67M	-7.88M	52.42M	30.34M	-93.53M	23.63M

SOL SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SOL, the sentiment is Negative. The current price of 48.35 is below the 20-day moving average (MA) of 50.68, below the 50-day MA of 50.87, and above the 200-day MA of 44.81, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 14.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€4.45B	28.49	15.43%	0.81%	11.37%	10.82%
ACE	70 Outperform	€4.57B	11.81	14.47%	4.50%	-15.52%	19.61%
IG	69 Neutral	€9.48B	16.84	―	4.11%	-3.34%	8.88%
A2A	68 Neutral	€8.49B	10.49	―	3.67%	7.71%	-6.79%
IRE	67 Neutral	€3.26B	10.63	9.99%	5.03%	13.50%	19.36%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%