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Solvay
(OTC:SLVYY)
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Rating:54Neutral
Price Target:
$3.00
â–²(0.67% Upside)
Action:Reiterated
Date:07/30/26
The score is held back primarily by weak recent profitability and elevated leverage versus the current earnings base, partially offset by continued positive cash generation. Technicals point to only early stabilization (short-term support but still below longer-term averages). Valuation is mixed: a very high dividend yield helps, but the negative P/E reflects earnings pressure. The earnings call adds modest support via confirmed guidance and cost actions, but near-term operational headwinds and transformation cash outflows remain meaningful risks.
Positive Factors
Positive cash generation
Despite weak earnings, Solvay continues to generate meaningful operating and free cash flow. This supports debt service, maintenance investment and strategic spending, providing resilience while profitability and market conditions remain under pressure.
Negative Factors
Profitability deterioration
Revenue contraction and near-breakeven earnings weaken internal funding capacity and make returns less reliable. EBITDA and gross margins remain positive, but their decline from recent levels signals reduced operating leverage and earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive cash generation
Despite weak earnings, Solvay continues to generate meaningful operating and free cash flow. This supports debt service, maintenance investment and strategic spending, providing resilience while profitability and market conditions remain under pressure.
Read all positive factors
Solvay (SLVYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.18B
Dividend Yield9.41%
Average Volume (3M)3.56K
Price to Earnings (P/E)1309.0
Beta (1Y)0.42
Revenue Growth-1.01%
EPS Growth-97.54%
CountryUS
Employees8,443
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)<0.01
Shares Outstanding1,058,760,000
10 Day Avg. Volume2,001
30 Day Avg. Volume3,555
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)2.73
Price to Sales (P/S)0.59
P/FCF Ratio7.17
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.27
Revenue Forecast (FY)$4.77B
Solvay Business Overview & Revenue Model
Company Description
Solvay S.A. is a global enterprise specializing in high-performance materials and an array of unique chemical products. Its operations are structured into four primary divisions: Materials, Chemicals, Solutions, and Corporate & Business Services. ...
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:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: clear strategic progress (record bicarbonate and electronic‑grade peroxide demand, rare‑earth investments and contracts, confirmed 2026 guidance, cost savings and a maintained investment‑grade rating) contrasted with significant near‑term operational headwinds (7% sales decline, 20% EBITDA decline, temporary EUR 20m hit from the Middle East plant shutdown, weak soda ash seaborne markets, modest H1 free cash flow and substantial transformation cash costs). Management confirmed guidance and is prioritizing long‑term transformation and selective growth, but near‑term metrics remain under pressure.Positive Updates
Record demand in bicarbonate and electronic‑grade peroxides
Management reported record sales levels for bicarbonate and for electronic‑grade hydrogen peroxide (driven by semiconductor/AI demand). Electronic‑grade growth helped mitigate weaker volumes elsewhere.
Negative Updates
Material YoY topline and EBITDA decline in Q2
Underlying net sales in Q2 were slightly over EUR 1 billion, down 7% year‑on‑year. Underlying EBITDA fell to EUR 187 million, down 20% YoY, with EBITDA margin at 18.1%.
Read all updates
Q2-2026 Updates
Positive
Negative
Record demand in bicarbonate and electronic‑grade peroxides
Management reported record sales levels for bicarbonate and for electronic‑grade hydrogen peroxide (driven by semiconductor/AI demand). Electronic‑grade growth helped mitigate weaker volumes elsewhere.
Read all positive updates
Company Guidance
The company confirmed its 2026 guidance, reiterating an underlying EBITDA target of EUR 770–850 million, free cash flow to Solvay shareholders from continuing operations to exceed EUR 200 million, and CapEx of around EUR 300 million, with this outlook explicitly assuming the restart of the peroxides (Sadara) plant before the end of Q3; management also noted temporary transformation-related cash outflows of ~EUR 90 million in 2026 (EUR 50 million expected in 2027). Key first-half metrics include underlying net sales just over EUR 1 billion in Q2, underlying EBITDA of EUR 187 million (18.1% margin) in Q2, free cash flow of EUR 15 million for H1 (Q2 at -EUR 11 million), CapEx ~EUR 140 million in H1, working capital outflow of -EUR 79 million and cash outflows from provisions of EUR 106 million; net debt stood at EUR 1.8 billion at end‑June, leverage temporarily above 2x after a EUR 254 million dividend payment but expected to be around 2x by year‑end, and the group retains a BBB- S&P rating.Solvay Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
46
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.56B | 4.75B | 5.13B | 6.02B | 16.07B | 11.44B |
| Gross Profit | 975.81M | 912.51M | 1.15B | 1.38B | 4.03B | 2.93B |
| EBITDA | 690.12M | 859.68M | 805.00M | 1.31B | 1.36B | 1.95B |
| Net Income | 3.89M | 28.82M | 223.00M | 2.09B | 1.91B | 948.00M |
Balance Sheet | ||||||
| Total Assets | 6.08B | 6.15B | 6.69B | 7.02B | 20.66B | 20.05B |
| Cash, Cash Equivalents and Short-Term Investments | 376.00M | 555.00M | 555.00M | 711.00M | 1.69B | 2.27B |
| Total Debt | 2.24B | 2.17B | 2.14B | 2.19B | 2.96B | 3.35B |
| Total Liabilities | 4.96B | 5.07B | 5.29B | 5.72B | 10.00B | 11.20B |
| Stockholders Equity | 1.04B | 1.02B | 1.34B | 1.26B | 10.60B | 8.74B |
Cash Flow | ||||||
| Free Cash Flow | 363.09M | 388.06M | 330.00M | 847.00M | 1.10B | 863.00M |
| Operating Cash Flow | 574.03M | 571.52M | 615.00M | 1.91B | 2.01B | 1.50B |
| Investing Cash Flow | -227.58M | -193.07M | -281.00M | -1.79B | -831.00M | -470.00M |
| Financing Cash Flow | -317.74M | -365.00M | -364.00M | -455.00M | -1.19B | -1.10B |
Solvay Technical Analysis
Positive
2.98
Price Trends
3.01
Positive
3.07
Negative
3.09
Negative
Market Momentum
>-0.01
Negative
55.15
Neutral
80.55
Negative
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 2.98 is below the 20-day moving average (MA) of 3.01, below the 50-day MA of 3.01, and below the 200-day MA of 3.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 80.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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% | |
54 Neutral | $3.18B | 1,309.00 | 0.27% | 9.41% | -1.01% | -97.54% | |
53 Neutral | $21.27B | -16.30 | -6.58% | 4.76% | -1.20% | -30.03% | |
51 Neutral | $4.90B | -4.18 | -28.81% | 0.27% | -2.28% | 27.94% | |
49 Neutral | $1.69B | -9.67 | -6.28% | 5.33% | 0.65% | 45.36% | |
41 Neutral | $699.35M | -0.69 | 142.56% | 18.42% | -1.40% | 2.39% | |
41 Neutral | $768.16M | -1.39 | -40.45% | 4.16% | 3.53% | -118.53% |
* Basic Materials Sector Average
SLVYY
Solvay
3.04
-0.15
-4.76%
CE
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BAK
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1.89
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HUN
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9.62
-1.10
-10.24%
TROX
TRONOX
4.81
0.45
10.27%
DOW
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29.44
6.59
28.83%
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.