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Solvay (SLVYY)
OTHER OTC:SLVYY
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Solvay
(OTC:SLVYY)
Rating:66Neutral
Price Target:
$3.50
▲(4.79%Upside)
Solvay (SLVYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.53B
Dividend Yield9.54%
Average Volume (3M)9.84K
Price to Earnings (P/E)17.0
Beta (1Y)0.02
Revenue Growth-44.99%
EPS Growth-90.04%
CountryUS
Employees9,000
SectorBasic Materials
Sector Strength63
IndustryChemicals
Share Statistics
EPS (TTM)0.08
Shares Outstanding1,058,760,000
10 Day Avg. Volume0
30 Day Avg. Volume9,838
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.09
Price to Sales (P/S)0.00
P/FCF Ratio0.90
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 (SLVYY) is a global leader in the chemicals industry, providing a wide array of innovative solutions to various sectors including aerospace, automotive, electronics, healthcare, and sustainable energy. The company specializes in developing advanced materials and specialty chemicals that enhance the performance and sustainability of its customers' products. With a strong focus on research and development, Solvay strives to create value through its diverse portfolio of products and services that cater to the evolving needs of industries worldwide.
How the Company Makes MoneySolvay generates revenue through the development, production, and sale of advanced materials and specialty chemicals. The company's key revenue streams include specialty polymers, composite materials, and performance chemicals, which serve diverse industries such as automotive, aerospace, and consumer goods. Solvay's earnings are bolstered by strategic partnerships with major corporations and a focus on sustainability, which drives demand for its eco-friendly and high-performance solutions. Additionally, the company's investment in innovation and R&D enables it to maintain a competitive edge and capture market share in high-growth sectors.
Solvay Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: -10.93%|
Next Earnings Date:Jul 30, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.Solvay Financial Statement Overview
Summary
Solvay's financial performance is stable, with moderate profitability and resilient margins despite declining revenue trends. The balance sheet shows moderate leverage with effective equity utilization. Cash flow is adequate but needs improvement for long-term sustainability. Opportunities exist for growth, but challenges remain in revenue and 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 | 5.08B | 5.13B | 6.02B | 16.07B | 11.44B | 9.71B |
| Gross Profit | 1.11B | 1.15B | 1.38B | 4.03B | 2.93B | 2.51B |
| EBITDA | 813.00M | 805.00M | 1.31B | 1.36B | 1.95B | 1.75B |
| Net Income | 197.00M | 223.00M | 2.09B | 1.91B | 948.00M | -1.09B |
Balance Sheet | ||||||
| Total Assets | 6.34B | 6.69B | 7.02B | 20.66B | 20.05B | 16.79B |
| Cash, Cash Equivalents and Short-Term Investments | 467.00M | 555.00M | 711.00M | 1.69B | 2.27B | 1.22B |
| Total Debt | 2.22B | 2.14B | 2.19B | 2.96B | 3.35B | 3.51B |
| Total Liabilities | 4.92B | 5.29B | 5.72B | 10.00B | 11.20B | 9.49B |
| Stockholders Equity | 1.36B | 1.34B | 1.26B | 10.60B | 8.74B | 7.20B |
Cash Flow | ||||||
| Free Cash Flow | 286.00M | 330.00M | 847.00M | 1.10B | 863.00M | 707.00M |
| Operating Cash Flow | 576.00M | 615.00M | 1.91B | 2.01B | 1.50B | 1.24B |
| Investing Cash Flow | -292.00M | -281.00M | -1.79B | -831.00M | -470.00M | 711.00M |
| Financing Cash Flow | -361.00M | -364.00M | -455.00M | -1.19B | -1.10B | -1.69B |
Solvay Technical Analysis
Negative
3.34
Price Trends
3.43
Negative
3.39
Negative
3.40
Negative
Market Momentum
<0.01
Negative
47.43
Neutral
29.37
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 3.34 is below the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.43, and below the 200-day MA of 3.40, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 29.37 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $18.96B | 68.81 | 1.60% | 10.17% | -2.08% | -76.11% | |
66 Neutral | $3.53B | 17.04 | 14.00% | 9.54% | -44.99% | -90.04% | |
62 Neutral | $9.80B | 9.36 | -1.52% | 3.00% | 2.18% | -34.96% | |
56 Neutral | $6.08B | 6.84 | -26.94% | 0.21% | -5.98% | -183.27% | |
56 Neutral | $824.00M | ― | -8.44% | 9.14% | 4.15% | 57.25% | |
46 Neutral | $1.79B | ― | -4.46% | 9.40% | 0.02% | -43.65% | |
41 Neutral | $1.35B | ― | -8638.28% | ― | 0.81% | -34.74% |
* Basic Materials Sector Average
Performance Comparison
SLVYY
Solvay
3.34
-0.04
-1.18%
CE
Celanese
55.61
-78.76
-58.61%
BAK
Braskem SA
3.20
-3.53
-52.45%
HUN
Huntsman
10.28
-11.10
-51.92%
TROX
TRONOX
5.41
-9.29
-63.20%
DOW
Dow Inc
26.82
-22.47
-45.59%
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.