Solvay (SLVYY) AI Stock Analysis

• Market Cap: $3.50B
• Dividend Yield: 9.79%
• Average Volume (3M): 12.76K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.02
• Revenue Growth: -44.99%
• EPS Growth: -90.04%
• Country: US
• Employees: 9,000
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals
• EPS (TTM): 0.08
• Shares Outstanding: 1,058,760,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 12,759
• PEG Ratio: <0.01
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.90
• 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

• Rating: 67 Neutral
• Price Target: $3.50 ▲(5.11%Upside)

Solvay's overall stock score reflects a stable financial performance with moderate profitability and a fair valuation offering a high dividend yield. The technical analysis indicates some caution due to mixed momentum signals. The absence of any notable corporate events or earnings call insights means the score is heavily reliant on financial and technical data.

Solvay Business Overview & Revenue Model

Company Description

Solvay SA provides advanced materials and specialty chemicals worldwide. It operates through four segments: Materials, Chemicals, Solutions, and Corporate & Business Services. The Materials segment offers specialty polymers, including aromatic polymers, high barrier polymers, and fluoropolymers for the electronics, automotive, aircraft, and healthcare industries; and composite materials for aerospace engineered materials market. The Chemicals segment produces and sells soda ash and sodium bicarbonate primarily to the flat and container glass industries, as well as for use in detergents, pharmaceutical, and feed and food industries; hydrogen peroxide for use primarily in the paper industry to bleach pulp, as well as chemicals, electronics, food, mining, and environment; and dispersible silica for tire manufacturers; and solvent solutions, specialty phenols, polyamide derivatives and smart, functional, and sustainable yarns and polymers. The Solutions segment offers specialty chemicals for agro, home and personal care, coatings, and industrial markets; technology solutions in specialty mining reagents, phosphine-based chemistry, and solutions for the stabilization of polymers; fluorine and rare-earth formulations for automotive, electronics, agrochemical, and construction applications; and vanillin for the flavors and fragrances industries, as well as synthetic intermediates used in pharmaceuticals, agrochemicals, and electronics. This segment also provides friction reducers, gelling agents, emulsion breakers, surfactants, inhibitors, cementing additives, and biocides for upstream oilfield chemicals sector, as well as sodium hypophosphite for metal plating and other applications. The Corporate & Business Services segment provides energy and other business services. The company was founded in 1863 and is headquartered in Brussels, Belgium.

How the Company Makes Money

Solvay generates revenue through the development, production, and sale of advanced materials and specialty chemicals. The company's key revenue streams include specialty polymers, composite materials, and performance chemicals, which serve diverse industries such as automotive, aerospace, and consumer goods. Solvay's earnings are bolstered by strategic partnerships with major corporations and a focus on sustainability, which drives demand for its eco-friendly and high-performance solutions. Additionally, the company's investment in innovation and R&D enables it to maintain a competitive edge and capture market share in high-growth sectors.

Solvay Financial Statement Overview

Summary

Solvay's financial performance is stable, with moderate profitability and resilient margins despite declining revenue trends. The balance sheet shows moderate leverage with effective equity utilization. Cash flow is adequate but needs improvement for long-term sustainability. Opportunities exist for growth, but challenges remain in revenue and cash flow generation.

Income Statement

Solvay's income statement reveals a mixed performance with moderate profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 21.85%, and the net profit margin is 3.88%. The company has faced challenges in maintaining revenue growth, as indicated by a decline in recent years. However, EBIT and EBITDA margins show resilience, with TTM EBIT margin at 11.88% and EBITDA margin at 16.02%. The overall profitability is stable but shows room for improvement.

Balance Sheet

The balance sheet indicates a reasonable level of financial stability for Solvay. The TTM debt-to-equity ratio is 1.63, suggesting a moderate level of leverage. The return on equity (ROE) is 14.49%, highlighting effective utilization of equity. The equity ratio stands at 21.44%, reflecting a balanced capital structure. Although leverage is notable, equity levels provide a cushion against potential risks.

Cash Flow

Solvay's cash flow position is moderately strong, with a positive operating cash flow to net income ratio of 2.92 in the TTM. However, the free cash flow growth rate has declined, indicating challenges in generating free cash flow. The free cash flow to net income ratio is 1.45, reflecting a decent conversion of income into cash flow. Overall, the cash flow is stable but requires attention to ensure sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.08B	5.13B	6.02B	16.07B	11.44B	9.71B
	Gross Profit
1.11B	1.15B	1.38B	4.03B	2.93B	2.51B
	EBIT
603.00M	651.00M	819.00M	2.34B	1.44B	912.00M
	EBITDA
813.00M	805.00M	1.31B	1.36B	1.95B	1.75B
	Net Income Common Stockholders
197.00M	223.00M	2.09B	1.91B	948.00M	-1.09B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
467.00M	555.00M	711.00M	1.69B	2.27B	1.22B
	Total Assets
6.34B	6.69B	7.02B	20.66B	20.05B	16.79B
	Total Debt
2.22B	2.14B	2.19B	2.96B	3.35B	3.51B
	Net Debt
1.77B	1.60B	1.61B	2.02B	2.40B	2.51B
	Total Liabilities
4.92B	5.29B	5.72B	10.00B	11.20B	9.49B
	Stockholders Equity
1.36B	1.34B	1.26B	10.60B	8.74B	7.20B
Cash Flow		Free Cash Flow
286.00M	330.00M	847.00M	1.10B	863.00M	707.00M
	Operating Cash Flow
576.00M	615.00M	1.91B	2.01B	1.50B	1.24B
	Investing Cash Flow
-292.00M	-281.00M	-1.79B	-831.00M	-470.00M	711.00M
	Financing Cash Flow
-361.00M	-364.00M	-455.00M	-1.19B	-1.10B	-1.69B

Solvay Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLVYY, the sentiment is Negative. The current price of 3.33 is below the 20-day moving average (MA) of 3.33, below the 50-day MA of 3.42, and below the 200-day MA of 3.40, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 76.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLVYY.

Solvay Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOW	69 Neutral	$20.15B	71.23	1.60%	9.82%	-2.08%	-76.11%
SLVYY	67 Neutral	$3.50B	16.61	14.00%	9.79%	-44.99%	-90.04%
TROX	56 Neutral	$869.96M	―	-8.44%	9.09%	4.15%	57.25%
CE	53 Neutral	$5.95B	6.84	-26.94%	0.22%	-5.98%	-183.27%
Sector *	51 Neutral	$2.01B	-1.27	-21.11%	5.15%	2.92%	-30.46%
BAK	46 Neutral	$1.53B	―	-8638.28%	―	0.81%	-34.74%
HUN	46 Neutral	$1.82B	―	-4.46%	9.57%	0.02%	-43.65%