The average target price of SOLV.BR is 140 and suggests 59% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 139.5. This translates into 59% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 139.5. This suggests 59% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Solvac S.A. operates as an advanced materials and specialty chemicals company in Belgium. The company offers specialty polymers, composite materials, soda ash, peroxides, and silica. Solvac S.A. was incorporated in 1983 and is headquartered in Brussels, Belgium.

Belgium

Solvac S.A.

Basic Materials

The company has a track record of regular dividend payments. It has paid dividends in each of the past ten years. Dividend per share (DPS) has grown yearly, and there is an evident trend. In the past 12 months, the dividend yield has been strong and significantly above its peers. At the same time, the average five-year yield has been significantly higher and exceeded most of its peers. On average, the company pays dividends twice a year. 

SOLV.BR reported revenue of EUR 0mn in the last 12 months, down 100% from FY22. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 0% from FY22 to EUR 21 375 032.56. Market expects EPS to reach EUR 0.00 in FY24.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 13ppts and its growth decelerated by 4ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.9 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

SOLV.BR has average trading liquidity. It will take several trading days for the average private investor to sell a common position under normal market conditions. Liquidity is usually quite stable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, negligible return on capital, poor working capital management, and inadequate interest coverage. We note low margin volatility and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, SOLV.BR is not volatile. In other words, the stock will fall far less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be very low. 

In normal market circumstances, SOLV.BR is not volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will stay within a narrow range. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

From both historical and forecast perspectives, the stock is fairly priced compared to similar stocks. Specifically, the stock is fairly valued on P/E, overvalued on EV/EBITD. 

Solvac S.A.

€ 88

5

Solvac S.A.

€ 88

5

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

€ 88

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