Solvay (SLVYY)
OTHER OTC:SLVYY
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Solvay
(OTC:SLVYY)
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Rating:52Neutral
Price Target:
$3.00
▼(-5.06% Downside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weakening financial performance (revenue decline, compressed profitability and a slight TTM net loss) alongside higher leverage, which increases risk if the downturn persists. Cash flow resilience and supportive shareholder returns (high dividend yield and FCF guidance) provide partial offset, but technicals remain weak with the stock trading below key moving averages and 2026 EBITDA guidance implying near-term earnings pressure.
Positive Factors
Free Cash Flow
Consistent positive free cash flow (EUR 350m in 2025; >€200m guidance for 2026) shows durable cash conversion. This supports debt service, the dividend and essential capex while absorbing transformation costs, providing a lasting buffer through cyclical weakness.
Negative Factors
Revenue & Volume Decline
Multi‑period revenue declines and a 4% volume drop in 2025 signal weakening demand and lost scale. Persistent top‑line contraction undermines pricing power and fixed‑cost absorption, making margin recovery and sustained profitability more challenging over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow
Consistent positive free cash flow (EUR 350m in 2025; >€200m guidance for 2026) shows durable cash conversion. This supports debt service, the dividend and essential capex while absorbing transformation costs, providing a lasting buffer through cyclical weakness.
Read all positive factors
Solvay (SLVYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.21B
Dividend Yield9.49%
Average Volume (3M)2.56K
Price to Earnings (P/E)26.5
Beta (1Y)0.40
Revenue Growth-1.26%
EPS Growth-114.40%
CountryUS
Employees9,000
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)-0.03
Shares Outstanding1,058,760,000
10 Day Avg. Volume6,676
30 Day Avg. Volume2,556
Financial Highlights & Ratios
PEG Ratio-1.11
Price to Book (P/B)2.73
Price to Sales (P/S)0.61
P/FCF Ratio7.17
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit4.34
Enterprise Value/Ebitda6.47
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.29
Revenue Forecast (FY)$5.04B
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 pol...
How the Company Makes Money
Solvay makes money primarily by selling specialty chemicals and materials to business customers under contracted supply arrangements and recurring purchase orders. Its revenue is largely generated from (1) sales of specialty materials (e.g., high-...
Solvay Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but balanced picture: the company demonstrated strong cash generation (EUR 350m FCF), meaningful structural savings (EUR 101m in 2025, cumulative EUR 211m), solid progress on decarbonization (Scope 1/2 emissions down 29% vs 2021) and continued selective strategic investments and social achievements. However, these positives were offset by notable near-term commercial and earnings headwinds — sales down 6%, volumes down 4%, underlying EBITDA down 13% to EUR 881m, high transformation and provision cash outs (approx. EUR 260m), and challenging markets for Soda Ash and Coatis driven by China overcapacity and tariffs. Management has set a more conservative 2026 EBITDA guidance (EUR 770–850m) and emphasized temporary stranded costs and ERP investments that will weigh on near-term performance, while retaining focus on cost control, cash and long-term competitiveness.Positive Updates
Strong Free Cash Flow Generation
Generated EUR 350 million of free cash flow in 2025 despite a weaker EBITDA, reflecting disciplined cash allocation, working capital optimization and limited CapEx (EUR 292 million, below the EUR 300 million guidance). Guidance for 2026 expects free cash flow to exceed EUR 200 million after covering EUR 90 million of transformation expenses.
Negative Updates
Revenue and Volume Declines
Underlying net sales declined to EUR 4.3 billion in 2025, down 6% year-on-year; volumes fell 4% year-on-year, mainly driven by Soda Ash and Coatis business units.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Free Cash Flow Generation
Generated EUR 350 million of free cash flow in 2025 despite a weaker EBITDA, reflecting disciplined cash allocation, working capital optimization and limited CapEx (EUR 292 million, below the EUR 300 million guidance). Guidance for 2026 expects free cash flow to exceed EUR 200 million after covering EUR 90 million of transformation expenses.
Read all positive updates
Company Guidance
Solvay guided underlying EBITDA of €770–€850m for 2026 (vs €881m in 2025, down 13%, EBITDA margin ~21% in 2025), explicitly factoring in a c.€20m negative FX hit and c.€40m of transformation-related EBITDA headwinds while assuming a CO2 (EUA) sale contribution similar to 2025; free cash flow to Solvay shareholders (continuing operations) is expected to exceed €200m after covering €90m of transformation cash costs, with Group CapEx again limited to below €300m, cumulative structural savings targeted at ~€300m by end‑2026 (gross €101m achieved in 2025; €211m cumulative to date), net debt about €1.6bn (leverage ~1.8x), and the Board proposing a total dividend of €2.43 per share.Solvay Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
50
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.63B | 4.56B | 5.13B | 6.02B | 16.07B | 11.44B |
| Gross Profit | 1.01B | 963.41M | 1.15B | 1.38B | 4.03B | 2.93B |
| EBITDA | 680.12M | 859.68M | 805.00M | 1.31B | 1.36B | 1.95B |
| Net Income | -25.11M | 28.82M | 223.00M | 2.09B | 1.91B | 948.00M |
Balance Sheet | ||||||
| Total Assets | 6.20B | 6.15B | 6.69B | 7.02B | 20.66B | 20.05B |
| Cash, Cash Equivalents and Short-Term Investments | 501.00M | 535.77M | 555.00M | 711.00M | 1.69B | 2.27B |
| Total Debt | 2.20B | 2.17B | 2.14B | 2.19B | 2.96B | 3.35B |
| Total Liabilities | 5.02B | 5.07B | 5.29B | 5.72B | 10.00B | 11.20B |
| Stockholders Equity | 1.12B | 1.02B | 1.34B | 1.26B | 10.60B | 8.74B |
Cash Flow | ||||||
| Free Cash Flow | 406.09M | 388.06M | 330.00M | 847.00M | 1.10B | 863.00M |
| Operating Cash Flow | 609.03M | 571.52M | 615.00M | 1.91B | 2.01B | 1.50B |
| Investing Cash Flow | -200.58M | -193.07M | -281.00M | -1.79B | -831.00M | -470.00M |
| Financing Cash Flow | -367.74M | -365.00M | -364.00M | -455.00M | -1.19B | -1.10B |
Solvay Technical Analysis
Negative
3.16
Price Trends
3.13
Negative
3.13
Negative
3.13
Negative
Market Momentum
-0.02
Positive
36.62
Neutral
10.81
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 3.16 is below the 20-day moving average (MA) of 3.20, above the 50-day MA of 3.13, and above the 200-day MA of 3.13, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.62 is Neutral, neither overbought nor oversold. The STOCH value of 10.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLVYY.
Solvay Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.40B | -10.86 | -11.76% | 8.44% | -4.74% | -149.27% | |
52 Neutral | $3.21B | 26.52 | -2.32% | 9.49% | -1.26% | -114.40% | |
52 Neutral | $6.23B | 40.99 | -25.26% | 0.29% | -5.63% | 34.29% | |
52 Neutral | $27.93B | -16.88 | -16.73% | 9.17% | -7.74% | -1093.11% | |
49 Neutral | $1.65B | 1.33 | 142.56% | ― | -13.10% | -0.68% | |
47 Neutral | $1.27B | -3.77 | -39.95% | 8.27% | -4.02% | -206.93% |
* Basic Materials Sector Average
SLVYY
Solvay
3.00
-0.15
-4.79%
CE
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6.49%
BAK
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36.04%
HUN
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2.11
18.04%
TROX
TRONOX
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56.74%
DOW
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38.56
10.36
36.73%
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.