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Solvay (SLVYY)
OTHER OTC:SLVYY
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Solvay
(OTC:SLVYY)
Rating:62Neutral
Price Target:
$3.50
▲(7.36% Upside)
Solvay (SLVYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.44B
Dividend Yield9.19%
Average Volume (3M)1.77K
Price to Earnings (P/E)22.9
Beta (1Y)0.05
Revenue Growth-28.95%
EPS Growth-92.43%
CountryUS
Employees9,000
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)0.01
Shares Outstanding1,058,760,000
10 Day Avg. Volume1,475
30 Day Avg. Volume1,766
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)2.41
Price to Sales (P/S)0.63
P/FCF Ratio9.77
Enterprise Value/Market Cap1.72
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit5.64
Enterprise Value/Ebitda8.78
Forecast
1Y Price Target
$3.50Price Target Upside7.36% Upside
Rating ConsensusHold
Number of Analyst Covering0
Solvay Business Overview & Revenue Model
Company DescriptionSolvay 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 MoneySolvay 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 Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -1.51%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Negative
The earnings call highlighted significant challenges in the soda ash and Coatis markets due to geopolitical tensions and competitive pressures, resulting in lower net sales and EBITDA. However, the company demonstrated strong cost management and resilience in the Performance Chemicals segment, along with promising opportunities in the rare earths business. Despite these efforts, the negative trends in key segments weigh heavily on the overall outlook.Q2-2025 Updates
Positive Updates
Cost Savings Initiatives
Structural cost-saving initiatives delivered €29 million in Q2, bringing the 2025 savings to €55 million and €165 million in total since the beginning of 2024. The company expects to exceed an intermediary target of €200 million by the end of 2025.
Performance Chemicals Segment Resilience
The Performance Chemicals segment EBITDA was up 9% compared to Q2 2024, with the EBITDA margin increasing to 24% year-on-year, driven by resilient performance in silica and electronic applications.
Strong Free Cash Flow Management
Free cash flow to shareholders from continuing operations amounted to €54 million in Q2 2025, reaching €97 million for H1 2025, in line with the previous indication to generate approximately 1/3 of the annual free cash flow in the first half of the year.
Rare Earths Business Potential
Growing interest from customers in the newly opened La Rochelle production line dedicated to rare earth production for permanent magnets in France, with potential for further capacity growth if stakeholders align.
Negative Updates
Soda Ash Market Challenges
Soda ash volumes were lower year-on-year due to continued soft demand in Europe and North America, along with increased pricing pressure in Southeast Asia, leading to a 25% decline in segment EBITDA compared to Q2 2024.
Coatis Business Under Performance
Coatis saw a significant decline with sales down 19%, impacted by increased competition from Asian players and renewed tariff tensions affecting demand in Latin America.
Overall Decline in Net Sales and EBITDA
Underlying net sales in Q2 2025 reached €1.1 billion, down 4% versus Q2 2024. Underlying EBITDA amounted to €230 million, down 12% compared to Q2 2024, with an EBITDA margin decrease to 21%.
High Inventory Levels in Soda Ash
High inventory levels in China at 1.5 million tonnes are pressuring the Southeast Asian market, potentially affecting global pricing dynamics.
Company Guidance
In the recent earnings call, Solvay provided guidance for its fiscal year 2025, highlighting several key financial and operational metrics. The company revised its outlook for 2025, anticipating underlying EBITDA to range between EUR 880 million and EUR 930 million, despite a challenging macroeconomic environment characterized by geopolitical tensions and tariff uncertainties. The company's Q2 2025 underlying net sales were reported at EUR 1.1 billion, reflecting a 4% decrease year-on-year, largely due to weaker performance in the Coatis business and the soda ash market. Underlying EBITDA for Q2 2025 was EUR 230 million, which marked a 12% decline from the previous year, with an EBITDA margin close to 21%. Solvay expects to achieve around EUR 300 million in free cash flow for the year, with approximately 1/3 generated in the first half and 2/3 in the second half. Additionally, the company is on track to exceed its cost-saving target of EUR 200 million by the end of 2025, supported by digitalization initiatives. Net debt is expected to reach around EUR 1.7 billion by year-end, with a healthy leverage ratio of 1.9 as of Q2 2025.Solvay Financial Statement Overview
Summary
Solvay's financial performance is stable overall, with moderate profitability and effective equity utilization. However, challenges include declining revenue trends and a need for improved 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.65
Positive
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.70
Positive
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.68
Positive
| 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
Negative
3.26
Price Trends
3.37
Negative
3.42
Negative
3.35
Negative
Market Momentum
-0.05
Positive
43.56
Neutral
34.37
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 3.26 is below the 20-day moving average (MA) of 3.34, below the 50-day MA of 3.37, and below the 200-day MA of 3.35, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 34.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLVYY.
Solvay Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $3.44B | 22.87 | 10.62% | 9.19% | -28.95% | -92.43% | |
61 Neutral | $9.71B | 7.49 | -0.14% | 3.12% | 2.66% | -46.45% | |
54 Neutral | $15.10B | 75.91 | -5.59% | 12.96% | -2.82% | -186.41% | |
50 Neutral | $1.61B | ― | -10.43% | 10.53% | -1.56% | -259.58% | |
48 Neutral | $5.23B | 6.84 | -26.94% | 1.62% | -5.98% | -183.27% | |
45 Neutral | $512.03M | ― | -14.11% | 15.48% | 0.20% | -292.54% | |
42 Neutral | $1.30B | ― | -8638.28% | ― | 0.81% | -34.74% |
* Basic Materials Sector Average
Performance Comparison
SLVYY
Solvay
3.32
0.06
1.84%
CE
Celanese
48.05
-77.53
-61.74%
BAK
Braskem SA
3.20
-3.04
-48.72%
HUN
Huntsman
9.50
-9.58
-50.21%
TROX
TRONOX
3.23
-8.99
-73.57%
DOW
Dow
21.61
-27.40
-55.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.