Solvay (SLVYY) AI Stock Analysis

• Market Cap: $3.36B
• Dividend Yield: 9.36%
• Average Volume (3M): 4.35K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.04
• Revenue Growth: -28.95%
• EPS Growth: -92.43%
• Country: US
• Employees: 9,000
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals
• EPS (TTM): 0.01
• Shares Outstanding: 1,058,760,000
• 10 Day Avg. Volume: 587
• 30 Day Avg. Volume: 4,350
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 5.64
• Enterprise Value/Ebitda: 8.78
• 1Y Price Target: $3.50
• Price Target Upside: 10.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: $3.50 ▲(10.06% Upside)

Solvay's overall stock score reflects significant challenges in financial performance and a cautious outlook from the earnings call. While the company benefits from operational efficiency and a high dividend yield, these are overshadowed by declining sales, profitability, and a challenging market environment. The technical analysis also indicates a lack of strong momentum, contributing to the moderate score.

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 makes money through the production and sale of advanced materials and specialty chemicals. Its revenue model is primarily based on manufacturing and distributing high-performance polymers, composite materials, and chemical solutions to various industrial sectors. Key revenue streams include sales to the automotive industry for lightweight materials, the aerospace sector for composite components, and the consumer goods sector for specialty chemicals. Solvay also benefits from strategic partnerships and collaborations with major companies to drive innovation and expand market reach. Additionally, the company's focus on sustainability and innovation helps in commanding premium pricing for its high-value products, contributing significantly to its earnings.

Solvay Financial Statement Overview

Summary

Solvay's financial performance shows challenges in revenue growth and profitability, with increasing leverage and declining cash flow metrics. Operational efficiency remains a strength, but strategic initiatives are needed to boost revenue and improve cash flow conversion.

Income Statement

Solvay's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate and margins compared to previous years. The gross profit margin and net profit margin have decreased, reflecting challenges in maintaining profitability. However, the company has managed to maintain a positive EBIT and EBITDA margin, indicating operational efficiency. The revenue growth rate has been negative, suggesting a need for strategic adjustments to drive growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which has increased in the TTM period, indicating higher financial leverage and potential risk. However, the return on equity remains positive, albeit lower than previous years, suggesting that the company is still generating returns for shareholders. The equity ratio indicates a stable capital structure, but the rising debt levels could pose a risk if not managed effectively.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with negative growth in the TTM period. The operating cash flow to net income ratio remains positive, indicating that the company is generating cash from its operations. However, the free cash flow to net income ratio has decreased, reflecting challenges in converting earnings into free cash flow. This could impact the company's ability to invest in growth opportunities or reduce debt.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.95B	5.13B	6.02B	16.07B	11.44B	9.71B
Gross Profit	1.05B	1.15B	1.38B	4.03B	2.93B	2.51B
EBITDA	676.00M	805.00M	1.31B	1.36B	1.95B	1.75B
Net Income	139.00M	223.00M	2.09B	1.91B	948.00M	-1.09B
Balance Sheet
Total Assets	6.30B	6.69B	7.02B	20.66B	20.05B	16.79B
Cash, Cash Equivalents and Short-Term Investments	345.00M	555.00M	711.00M	1.69B	2.27B	1.22B
Total Debt	2.23B	1.88B	2.19B	2.96B	3.35B	3.51B
Total Liabilities	5.09B	5.29B	5.72B	10.00B	11.20B	9.49B
Stockholders Equity	1.14B	1.34B	1.26B	10.60B	8.74B	7.20B
Cash Flow
Free Cash Flow	243.00M	330.00M	847.00M	1.10B	863.00M	707.00M
Operating Cash Flow	548.00M	615.00M	1.91B	2.01B	1.50B	1.24B
Investing Cash Flow	-284.00M	-281.00M	-1.79B	-831.00M	-470.00M	711.00M
Financing Cash Flow	-397.00M	-364.00M	-455.00M	-1.19B	-1.10B	-1.69B

Solvay Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.18 is below the 20-day moving average (MA) of 3.30, below the 50-day MA of 3.36, and below the 200-day MA of 3.31, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 17.41 is Positive, 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
Sector *	61 Neutral	$10.20B	6.09	0.72%	2.93%	3.45%	-36.02%
SLVYY	59 Neutral	$3.36B	22.54	10.62%	9.36%	-28.95%	-92.43%
HUN	56 Neutral	$1.94B	―	-10.43%	9.08%	-1.56%	-259.58%
DOW	48 Neutral	$17.46B	75.91	-5.59%	10.24%	-2.82%	-186.41%
CE	47 Neutral	$5.22B	6.84	-25.69%	1.71%	-5.83%	-183.85%
BAK	45 Neutral	$1.37B	―	-8638.28%	―	-3.33%	44.37%
TROX	45 Neutral	$678.49M	―	-14.11%	10.22%	0.20%	-292.54%