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Solvay Sa Adr (SLVYY)
:SLVYY
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Solvay
(OTC:SLVYY)
55Neutral
Solvay (SLVYY) vs. S&P 500 (SPY)
Market Cap
$3.80B
Dividend Yield2.67%
Average Volume (3M)1.80K
Price to Earnings (P/E)15.7
Beta (1Y)-0.26
Revenue Growth-55.13%
EPS Growth-89.36%
CountryUS
Employees9,000
SectorBasic Materials
Sector Strength59
IndustryChemicals
Share Statistics
EPS (TTM)0.23
Shares Outstanding1,058,760,000
10 Day Avg. Volume0
30 Day Avg. Volume1,802
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)N/A
Price to Sales (P/S)0.70
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
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 generates revenue primarily through the sale of its high-performance materials and specialty chemical products to industrial clients worldwide. The company's revenue streams are largely driven by its three primary business segments: Advanced Materials, Advanced Formulations, and Performance Chemicals. Advanced Materials focuses on providing lightweighting and performance solutions for industries such as automotive and aerospace. Advanced Formulations supplies specialty chemical solutions for markets including consumer goods and agriculture. Performance Chemicals provides essential chemicals used in various industrial applications. Solvay's earnings are also influenced by its strategic partnerships and collaborations with other industry leaders to drive innovation and expand its market reach. Additionally, the company's ongoing investment in research and development supports the introduction of new and improved products, contributing to its revenue growth.
Solvay Financial Statement Overview
Summary
Solvay's financial performance shows challenges in revenue growth and profitability, with declining income and cash flow trends. The balance sheet indicates high leverage, posing risks if not managed carefully. However, strengths in cash flow conversion counterbalance some of these issues.Income Statement
Solvay's income statement shows a declining trend in total revenue over the past year, with a substantial drop from 2023 to 2024. The gross profit margin remains steady, indicating efficiency in cost management, but the net profit margin is significantly impacted by the high net income reported in 2023 compared to 2024. The lack of EBIT in 2024 is concerning, highlighting operational challenges. Overall, the company's profitability metrics depict a volatile performance, warranting a cautious outlook.45
Neutral
Balance Sheet
The balance sheet indicates a high debt-to-equity ratio, reflecting significant leverage which poses financial risk. However, the equity ratio shows the company maintains a reasonable proportion of assets financed by equity. Return on equity has seen fluctuations, primarily due to unstable net income. The balance sheet reflects the company's leveraged position and potential vulnerability to financial instability, though it maintains a stable asset base.50
Neutral
Cash Flow
Solvay's cash flow shows a decrease in operating and free cash flow over the past year, yet the company consistently generates positive cash flow from operations. The free cash flow to net income ratio is robust, indicating efficient conversion of income into cash. Despite these strengths, the decline in cash flow growth and capital expenditures require attention, highlighting a need for improved cash management.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.13B | 6.02B | 16.07B | 11.44B | 9.71B | Gross Profit |
| 1.15B | 1.38B | 4.03B | 2.93B | 2.51B | EBIT |
| 0.00 | -115.00M | 2.34B | 1.44B | 912.00M | EBITDA |
| 805.00M | 526.00M | 2.11B | 2.05B | 1.75B | Net Income Common Stockholders |
| 223.00M | 2.09B | 1.91B | 948.00M | -1.09B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 555.00M | 756.00M | 1.69B | 2.27B | 1.22B | Total Assets |
| 6.69B | 7.02B | 20.66B | 20.05B | 16.79B | Total Debt |
| 2.14B | 2.19B | 2.96B | 3.35B | 3.51B | Net Debt |
| 1.60B | 1.61B | 2.02B | 2.40B | 2.51B | Total Liabilities |
| 5.29B | 5.72B | 10.00B | 11.20B | 9.49B | Stockholders Equity |
| 1.34B | 1.26B | 10.60B | 8.74B | 7.20B |
| Cash Flow | Free Cash Flow | |||
| 330.00M | 847.00M | 1.10B | 863.00M | 707.00M | Operating Cash Flow |
| 615.00M | 1.91B | 2.01B | 1.50B | 1.24B | Investing Cash Flow |
| -281.00M | -1.79B | -831.00M | -470.00M | 711.00M | Financing Cash Flow |
| -364.00M | -455.00M | -1.19B | -1.10B | -1.69B |
Solvay Technical Analysis
Positive
3.61
Price Trends
3.37
Positive
3.33
Positive
3.47
Positive
Market Momentum
0.08
Positive
51.82
Neutral
14.03
Positive
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 3.61 is below the 20-day moving average (MA) of 3.66, above the 50-day MA of 3.37, and above the 200-day MA of 3.47, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 14.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLVYY.
Solvay Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $10.05B | 11.34 | 16.11% | 3.74% | 1.91% | 2.94% | |
69 Neutral | $65.02B | 16.97 | 24.40% | 2.42% | -3.12% | 64.53% | |
65 Neutral | $30.95B | 44.29 | 3.12% | 2.05% | 2.64% | 80.37% | |
65 Neutral | $24.39B | 18.01 | 19.13% | 2.50% | -4.59% | 11.09% | |
58 Neutral | $24.18B | 21.95 | 6.14% | 8.15% | -3.72% | 91.57% | |
55 Neutral | $3.80B | 15.73 | 17.26% | 2.67% | -55.13% | -89.36% | |
47 Neutral | $2.66B | -3.14 | -22.17% | 3.33% | 3.73% | -29.29% |
* Basic Materials Sector Average
Performance Comparison
SLVYY
Solvay
3.61
0.97
36.74%
APD
Air Products and Chemicals
292.27
53.42
22.37%
EMN
Eastman Chemical
87.05
-9.92
-10.23%
PPG
PPG Industries
107.44
-32.85
-23.42%
DD
DuPont de Nemours
74.03
-1.73
-2.28%
DOW
Dow Inc
34.36
-20.53
-37.40%
Solvay Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 4.64% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Solvay's strong financial performance and successful cost-saving initiatives amidst a challenging economic environment. The company made significant progress in sustainability efforts. However, the call also underscored safety challenges, decreased net sales, and pressures in some segments.Highlights
Solid Financial Performance
Solvay reported an EBITDA of €1.52 billion for 2024, supported by cost savings well above forecasts due to accelerated initiatives. Free cash flow was €361 million, highlighting the resilience of the company in a volatile economic landscape. The company also successfully issued a €1.5 billion bond.
Operational Excellence and Cost Savings
Solvay achieved cost savings of €110 million in 2024, exceeding their target of €80 million. The company increased its cost savings target to €350 million by 2028, with €200 million expected by the end of 2025.
Sustainability and Energy Transition Progress
Solvay launched the 'Four Generations' sustainability roadmap, maintaining its target for carbon neutrality by 2050 and achieving a 17% reduction in greenhouse gas emissions so far. The company exited coal at two plants in 2024 and launched projects to support biodiversity.
Strong Performance in Basic Chemicals
The Basic Chemicals segment demonstrated solid performance in Q4 2024, with soda ash volumes higher especially in the seaborne market and a strong demand for bicarbonate.
Lowlights
Tragic Safety Incidents
Solvay reported three tragic accidents in 2024, including two in Q4, which highlighted ongoing safety challenges despite efforts to improve safety culture.
Decreased Net Sales and EBITDA
Net sales in 2024 were €4.7 billion, down 4% from 2023, primarily due to lower prices in the soda ash business. Underlying EBITDA decreased by 8% year-on-year.
Challenges in Performance Chemicals
The Performance Chemicals segment faced slight volume decreases in silica tire applications and Special Chem autocatalysis, although prices remained resilient.
Company Guidance
In the Solvay 2024 Full Year Results Conference Call, the company provided guidance for 2025 with expectations of an underlying EBITDA between €1 billion and €1.1 billion. They anticipate net pricing to remain resilient compared to 2024 and plan to achieve an additional €90 million in cost savings. This will contribute to a cumulative €200 million in cost savings since 2023, supporting their EBITDA target. Furthermore, Solvay projects free cash flow to shareholders from continuing operations to be approximately €300 million, with capital expenditures ranging between €300 million and €350 million. Solvay remains committed to achieving carbon neutrality by 2050, with an interim target of reducing greenhouse gas emissions by 30% by 2030, having already achieved a 17% reduction so far. They plan to invest €30 million to €35 million annually until 2030 in sustainability projects, increasing to €50 million per year by 2040.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.