Solvay (SLVYY) AI Stock Analysis

• Market Cap: $3.12B
• Dividend Yield: 9.17%
• Average Volume (3M): 2.56K
• Price to Earnings (P/E): 20.9
• Beta (1Y): -0.02
• Revenue Growth: -4.18%
• EPS Growth: -90.40%
• Country: US
• Employees: 9,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.04
• Shares Outstanding: 1,058,760,000
• 10 Day Avg. Volume: 6,676
• 30 Day Avg. Volume: 2,556
• PEG Ratio: -0.16
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 9.77
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 5.64
• Enterprise Value/Ebitda: 8.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $3.50 ▲(8.02% Upside)

Solvay's overall stock score reflects challenges in financial performance and technical analysis, partially offset by a favorable valuation and strategic initiatives highlighted in the earnings call. The company's ability to manage debt and improve cash flow will be crucial for future stability.

Positive Factors

Operational Excellence

The operational excellence initiative, focusing on digital transformation, is set to significantly reduce costs, enhancing long-term profitability.

Rare Earth Expansion

Expanding rare earth production positions Solvay to capitalize on growing demand for advanced materials, strengthening market position.

CO2 Emission Rights Optimization

Strategic optimization of CO2 rights provides a recurring revenue stream, enhancing cash flow and financial flexibility.

Negative Factors

Declining Revenue Growth

A decline in sales indicates challenges in maintaining market share and revenue growth, potentially impacting long-term financial health.

High Debt Levels

Increased leverage can strain financial resources, limiting the company's ability to invest in growth and manage economic downturns.

Challenges in Soda Ash Business

Persistent pricing pressure in soda ash could erode margins and profitability, affecting the company's competitive position in this segment.

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 sale of its advanced materials and specialty chemicals, which are utilized across various sectors. The company has key revenue streams from its Advanced Materials segment, which includes high-performance plastics and composites for the automotive and aerospace industries, and its Advanced Formulations segment, which provides specialty chemicals and formulations for industries such as consumer goods and pharmaceuticals. Additionally, Solvay benefits from long-term contracts with major clients, contributing to stable revenue streams. Strategic partnerships and collaborations with technology companies enhance its product offerings and create new market opportunities, further driving its earnings.

Solvay Financial Statement Overview

Summary

Solvay's financial performance is challenged by declining revenue growth and profitability, with increased 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	660.00M	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	2.14B	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: Positive
• Last Price: 3.24
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 3.24 is above the 20-day moving average (MA) of 3.17, above the 50-day MA of 3.17, and below the 200-day MA of 3.33, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.52 is Neutral, neither overbought nor oversold. The STOCH value of 71.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLVYY.

Solvay Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLVYY	63 Neutral	$3.12B	20.91	10.62%	9.17%	-4.18%	-90.40%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HUN	54 Neutral	$1.80B	―	-10.65%	13.48%	-3.46%	-191.77%
CE	53 Neutral	$4.55B	―	-54.74%	0.29%	-7.34%	-382.79%
DOW	49 Neutral	$16.96B	―	-6.39%	8.84%	-5.25%	-208.14%
BAK	47 Neutral	$1.14B	―	―	―	-10.68%	36.31%
TROX	46 Neutral	$610.43M	―	-18.65%	8.88%	-7.81%	-334.15%

Solvay Corporate Events

Solvay SA ADR Reports Challenging Q3 2025 Performance

Solvay SA ADR is a global chemical company operating in the specialty chemicals and advanced materials sectors, known for its focus on sustainable solutions and energy transition projects. In its latest earnings report for the first nine months of 2025, Solvay highlighted a challenging market environment, particularly in the Southeast Asian soda ash market, leading to a decline in net sales and EBITDA compared to the previous year. Despite these challenges, the company achieved significant cost savings and optimized its portfolio of CO2 emissions rights, contributing positively to its EBITDA and free cash flow. Key financial metrics showed a decrease in net sales by 9.7% year-over-year for Q3 2025, with an EBITDA margin of 22.2%. The company also reported a free cash flow of €117 million for the quarter, supported by strategic asset optimization. Looking ahead, Solvay remains confident in meeting its 2025 objectives, with expectations of an underlying EBITDA between €880 million and €930 million and a free cash flow of around €300 million, as it continues to focus on disciplined investments and structural cost savings.