Solvay (SLVYY) AI Stock Analysis

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Solvay

(Other OTC:SLVYY)

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Rating:43Neutral

Price Target:$2.50▼(-8.36% Downside)

Action:reiterated

Date:11/06/26

The score is primarily constrained by weak financial performance, including low profitability, declining revenue, elevated leverage, and deteriorating free cash flow. Neutral-to-bearish technical indicators and an unusually high P/E further weigh on the rating, while the high dividend yield and reaffirmed guidance provide limited support.

Positive Factors

Diversified specialty materials portfolioSolvay serves multiple industrial end markets through specialty materials, advanced polymers, composites, and chemical solutions. This breadth can reduce dependence on any single customer sector while supporting recurring demand for products embedded in customers’ manufacturing processes and finished goods.

Negative Factors

Persistent revenue and EBITDA contractionThe simultaneous decline in sales and EBITDA signals pressure on demand, pricing, and operating leverage across the portfolio. If weakness persists, lower utilization and reduced mix quality could constrain earnings recovery and make management’s growth and cash-flow targets harder to achieve.

Solvay (SLVYY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $2.82B
Dividend Yield: 10.49%
Average Volume (3M): 8,937
Price to Earnings (P/E): 77.3
Beta (1Y): 0.49
Revenue Growth: -3.22%
EPS Growth: -76.25%
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

Earnings Call Date:Jul 29, 2026(Q2-2026)|% Change Since:-9.31%|Next Earnings Date:Mar 04, 2027

Earnings Call SentimentNeutral

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%.

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

Weak overall financial profile: revenue declined, margins and net profitability are thin, leverage remains elevated, and free cash flow declined despite remaining positive.

Income Statement

25Negative

Balance Sheet

35Negative

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.50B	4.75B	5.13B	6.02B	16.07B	11.44B
Gross Profit	896.69M	912.51M	1.15B	1.38B	4.03B	2.93B
EBITDA	644.28M	859.68M	805.00M	1.31B	1.96B	1.95B
Net Income	35.50M	28.82M	223.00M	2.09B	1.91B	948.00M
Balance Sheet
Total Assets	6.32B	6.15B	6.69B	7.02B	20.66B	20.05B
Cash, Cash Equivalents and Short-Term Investments	372.20M	555.00M	555.00M	711.00M	1.69B	2.27B
Total Debt	2.25B	2.17B	2.14B	2.19B	2.96B	3.35B
Total Liabilities	5.02B	5.07B	5.29B	5.72B	10.00B	11.20B
Stockholders Equity	1.24B	1.02B	1.34B	1.26B	10.60B	8.74B
Cash Flow
Free Cash Flow	311.10M	388.06M	330.00M	847.00M	1.10B	863.00M
Operating Cash Flow	488.71M	571.52M	615.00M	1.91B	2.01B	1.50B
Investing Cash Flow	-223.15M	-193.07M	-281.00M	-1.79B	-831.00M	-470.00M
Financing Cash Flow	-319.89M	-365.00M	-364.00M	-455.00M	-1.19B	-1.10B

Solvay Technical Analysis

Technical Analysis SentimentNeutral

Last Price2.73

Price Trends

50DMA2.80Negative

100DMA2.91Negative

200DMA3.01Negative

Market Momentum

MACD-0.02Negative

RSI49.87Neutral

STOCH75.45Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLVYY, the sentiment is Neutral. The current price of 2.73 is above the 20-day moving average (MA) of 2.69, below the 50-day MA of 2.80, and below the 200-day MA of 3.01, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 75.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLVYY.

Solvay Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

SLVYY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CE	61Neutral	$5.64B	21.60	6.35%	0.23%	1.43%	―
DOW	60Neutral	$23.92B	-26.22	-4.50%	4.24%	4.16%	20.86%
DD	55Neutral	$20.38B	68.35	2.18%	1.56%	-43.45%	―
OLN	55Neutral	$1.99B	-11.88	-9.57%	4.58%	-0.73%	-415.18%
HUN	49Neutral	$1.67B	-9.98	-6.12%	3.67%	6.49%	47.81%
SLVYY	43Neutral	$2.85B	77.31	3.18%	10.49%	-3.22%	-76.25%

* Basic Materials Sector Average

Performance Comparison

SLVYY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SLVYY	Solvay Sa Adr	2.73	-0.38	-12.34%
CE	Celanese	51.41	14.57	39.54%
HUN	Huntsman	9.53	1.53	19.20%
OLN	Olin Corporation	17.46	-1.06	-5.71%
DD	DuPont de Nemours, Inc.	153.78	39.84	34.96%
DOW	Dow Inc.	33.04	12.39	60.00%

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 06, 2026

Solvay AI Stock Analysis