SOL SPA (SOL) AI Stock Analysis

17 Followers

SOL SPA

(Milan:SOL)

Select Model

Rating:65Neutral

Price Target:EUR 67.00▲(5.35% Upside)

Action:reiterated

Date:11/05/26

The score is driven primarily by solid underlying operating performance but constrained by weakening free cash flow and rising leverage, which reduce financial flexibility. Technicals are supportive with the stock trading above major moving averages, but valuation is a clear headwind given the high P/E and low dividend yield.

Positive Factors

Consistent Revenue GrowthRevenue growth remained positive every year from 2020 through 2025, with modest re-acceleration in 2025. This indicates ongoing demand expansion and gives the company a durable base for maintaining scale, reinvesting in operations, and supporting earnings over the next several quarters.

Negative Factors

Declining Free Cash FlowDeclining free cash flow, despite positive earnings and operating cash flow, reduces the funds available for reinvestment, debt reduction, and shareholder returns. If this persists, weaker cash efficiency could constrain strategic flexibility and make growth more dependent on external financing.

SOL SPA (SOL) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 5.66B
Dividend Yield: 0.72%
Average Volume (3M): 42.50K
Price to Earnings (P/E): 32.7
Beta (1Y): 0.29
Revenue Growth: 8.54%
EPS Growth: 10.90%
Country: Italy
Employees: 8,000
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

SOL SPA Business Overview & Revenue Model

Company Description

SOL S.p.A., a global enterprise established in Monza, Italy, in 1927, operates as a subsidiary of Gas and Technologies World BV. The company primarily focuses on the research, manufacturing, and distribution of a diverse array of technical and medica...

SOL SPA Financial Statement Overview

Summary

Income statement strength (score 74) shows consistent revenue growth and steady mid-teens EBIT margins, but this is offset by weaker cash flow quality (cash flow score 52) with declining free cash flow and only moderate cash conversion. Balance sheet is fair (score 67) with a notable watch item: leverage increased meaningfully in 2025, reducing flexibility.

Income Statement

74Positive

Balance Sheet

67Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.85B	1.78B	1.61B	1.49B	1.38B	1.11B
Gross Profit	312.71M	292.90M	1.17B	641.49M	290.04M	250.18M
EBITDA	446.49M	439.84M	391.08M	372.51M	319.04M	255.41M
Net Income	173.34M	166.99M	147.70M	145.73M	133.69M	89.55M
Balance Sheet
Total Assets	2.56B	2.42B	2.14B	1.94B	1.72B	1.44B
Cash, Cash Equivalents and Short-Term Investments	312.81M	364.71M	244.14M	220.15M	147.43M	139.64M
Total Debt	878.27M	828.83M	573.61M	620.54M	461.36M	460.40M
Total Liabilities	1.32B	1.23B	1.06B	965.54M	855.95M	723.00M
Stockholders Equity	1.18B	1.14B	1.03B	928.61M	820.62M	698.26M
Cash Flow
Free Cash Flow	72.41M	24.88M	47.43M	65.11M	53.74M	44.81M
Operating Cash Flow	311.65M	276.77M	297.49M	270.06M	214.92M	192.56M
Investing Cash Flow	-330.87M	-286.67M	-266.37M	-246.69M	-252.30M	-229.52M
Financing Cash Flow	48.57M	120.05M	-7.88M	52.42M	30.34M	-93.53M

SOL SPA Technical Analysis

Technical Analysis SentimentPositive

Last Price63.60

Price Trends

50DMA57.21Positive

100DMA57.42Positive

200DMA55.96Positive

Market Momentum

MACD1.63Negative

RSI63.43Neutral

STOCH63.93Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SOL, the sentiment is Positive. The current price of 63.60 is above the 20-day moving average (MA) of 59.24, above the 50-day MA of 57.21, and above the 200-day MA of 55.96, indicating a bullish trend. The MACD of 1.63 indicates Negative momentum. The RSI at 63.43 is Neutral, neither overbought nor oversold. The STOCH value of 63.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:SOL.

SOL SPA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IT:SOL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IT:ACE	74Outperform	EUR 4.57B	6.47	24.94%	4.42%	-20.70%	83.10%
IT:A2A	71Outperform	EUR 7.45B	10.96	11.50%	4.37%	13.73%	-15.80%
IT:HER	69Neutral	EUR 5.50B	11.75	11.57%	4.26%	-11.37%	-8.54%
IT:SOL	65Neutral	EUR 5.66B	32.67	14.94%	0.72%	8.54%	10.90%
IT:ENEL	60Neutral	EUR 97.46B	24.56	14.03%	3.75%	-0.14%	-26.76%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IT:SOL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:SOL	SOL SPA	63.60	15.57	32.41%
IT:A2A	A2A SpA	2.31	-0.03	-1.20%
IT:ACE	ACEA SPA	21.24	1.17	5.81%
IT:EDNR	Edison Spa (0N4J)	1.86	-0.58	-23.81%
IT:ENEL	Enel S.p.A.	9.85	1.34	15.73%
IT:HER	HERA S.p.A.	3.74	-0.14	-3.63%

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.

Date of analysis: Nov 04, 2026

SOL SPA AI Stock Analysis