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Solvay (SLVYY) AI Stock Analysis
Solvay
(Other OTC:SLVYY)
The overall score is driven primarily by weakened financial performance and elevated leverage, which materially increase risk despite stable operating and free cash flows. Valuation adds further caution due to the very high P/E multiple, even though the dividend yield is attractive. The earnings call provides moderate support through confirmed guidance and strategic progress but is tempered by near-term pressure on earnings and cash generation, while technical indicators suggest a broadly neutral to slightly negative trading pattern rather than a strong trend.
Solvay (SLVYY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.71B
- Dividend Yield
- 10.76%
- Average Volume (3M)
- 10.43K
- Price to Earnings (P/E)
- 1191.0
- Beta (1Y)
- 0.40
- Revenue Growth
- -1.01%
- EPS Growth
- -97.54%
- Country
- US
- Employees
- 8,443
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Chemicals
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. The...
How the Company Makes Money
Solvay primarily makes money by selling chemical products and engineered materials to industrial and commercial customers under supply contracts and purchase orders. Revenue is generated across its business segments through (1) sales of specialty mat...
Solvay Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Financial performance is weak: revenue has shrunk materially since 2022, profitability has fallen to near break-even, and leverage is high due to a sharply reduced equity base, partially offset by resilient gross margins and still-positive operating and free cash flows.
Income Statement
32NegativeBalance Sheet
35NegativeCash Flow
58Neutral| 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 | 1.96B | 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
Price Trends
Market Momentum
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 2.66 is below the 20-day moving average (MA) of 2.73, below the 50-day MA of 2.85, and below the 200-day MA of 3.03, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.84 is Neutral, neither overbought nor oversold. The STOCH value of 38.25 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
DD62Neutral
DOW60Neutral
CE56Neutral
HUN55Neutral
OLN54Neutral- SLVYY46Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DD | 62Neutral | $18.91B | 304.46 | 0.34% | 1.71% | -34.44% | ― |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| DOW | 60Neutral | $25.12B | -27.54 | -4.50% | 4.03% | 4.16% | 20.86% |
| CE | 56Neutral | $5.41B | -4.62 | -28.81% | 0.24% | -2.28% | 27.94% |
| HUN | 55Neutral | $1.69B | -9.69 | -6.28% | 3.63% | 0.65% | 45.36% |
| OLN | 54Neutral | $2.01B | -11.97 | -9.57% | 4.55% | -0.73% | -415.18% |
| SLVYY | 46Neutral | $2.78B | 1191.00 | 0.27% | 10.76% | -1.01% | -97.54% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SLVYY | Solvay Sa Adr | 2.66 | -0.28 | -9.40% | |
| CE | Celanese | 49.30 | 12.33 | 33.34% | |
| HUN | Huntsman | 9.64 | 1.87 | 24.05% | |
| OLN | Olin Corporation | 17.60 | -1.74 | -8.99% | |
| DD | DuPont de Nemours, Inc. | 140.05 | 37.78 | 36.94% | |
| DOW | Dow Inc. | 34.70 | 12.56 | 56.75% |
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: Oct 31, 2026