
Solstice Advanced Materials SOLS
79.12 USD (+31.1%)
8 analysts
What does it do?
Solstice Advanced Materials Inc is a US manufacturer of high-value specialty chemicals, selling to industrial customers with margins above basic chemicals and double-digit growth.
Key points
from its scores- ✓Good share-price trend8.0
- ✓Strong growth7.3
- ✕Little or no dividend3.4
- ✕Demanding valuation3.8
- ✕Little competitive advantage4.8
AI analysis
bottom line, main risk, context and newsGrowth and return on invested capital are attractive, but the valuation already discounts a strong acceleration and free cash flow generation is negative; wait for results to confirm the thesis before adding to the position.
Solstice combines solid growth (revenue +11.1%, earnings +22.8%) with a 19.74% ROIC, but its demanding valuation (P/E 45.73) and negative free cash flow conversion (-3.07) require the expected acceleration to materialize to justify the current price.
Negative free cash flow conversion (-3.07) with a P/E of 45.73: if expected growth does not materialize, the elevated multiple leaves little room for error and the stock could correct sharply.
Context and risks
No recent news and no material exposure to current macro factors: the company is a US specialty chemical player with moderate debt (ND/EBITDA 1.88) and no relevant dependence on shipping routes, tariffs, or energy commodities in its cost structure. The rise in long-term US rates is a general market factor already reflected in its multiple, not a specific risk to its business.
Is Solstice Advanced Materials stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 82% above the Basic Materials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 45.7 | 19.2 | +138% |
| EV / EBITDA | 12.6 | 10.0 | +26% |
| Price / book | 6.0 | 2.3 | +167% |
| Price / sales | 2.3 | 2.2 | +6% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.8 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 79.12 USD, +31.1% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 4.8 (sector 5.1), Growth 7.3 (sector 6.8).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- P/E
- 45.7
- Forward P/E
- 17.9
- EV / EBITDA
- 12.6
- Price / book
- 6.0
- Price / sales
- 2.3
- PEG
- 0.53
- Market cap
- 9.6B USD
- Enterprise value
- 11.3B USD
Profitability
- ROE
- 11.3%
- ROA
- 7.6%
- ROIC (approx.)
- 19.7%
- Gross margin
- 30.6%
- Operating margin
- 19.3%
- Net margin
- 5.1%
- Free cash flow
- −27.4M USD
- FCF yield
- −0.3%
- Cash conversion
- −3%
Solvency
- Total debt
- 2.4B USD
- Net debt
- 1.7B USD
- Cash
- 750.0M USD
- EBITDA
- 892.0M USD
- Net debt / EBITDA
- 1.88
- Debt / equity
- 152.77
- Current ratio
- 1.46
- Quick ratio
- 0.81
Growth
- Revenue growth
- +11.1%
- Earnings growth
- +22.8%
- EPS (TTM)
- 1.32 USD
- EPS (forward)
- 3.38 USD
Dividend
- Dividend yield
- 0.5%
- Payout
- 11.4%
Risk and market
- Analyst consensus
- Strong buy (8)
- Target price
- 79.12 USD
- 52-week range
- 40.43 – 90.80
Recent news
All SOLS news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about Solstice Advanced Materials
Is Solstice Advanced Materials stock cheap or expensive?
On P/E and EV / EBITDA, it trades 82% above the Basic Materials median on average. Valuation score: 3.8 out of 10 (median for Basic Materials: 5.8). Average analyst target: 79.12 USD, +31.1% versus the price. This is not investment advice.
What score does Solstice Advanced Materials get on MeridIAn Screener?
It scores 5.2 out of 10, rank 1,609 of 2,130 (better than 24% of the companies analysed). Its strongest category is Momentum (8.0) and its weakest, Dividend (3.4). Analysis of 08/10/2026.
What is Solstice Advanced Materials's P/E ratio?
Its P/E is 45.7: the share price equals 45.7 times earnings per share over the last 12 months. The Basic Materials median is 19.2. Based on the earnings analysts expect, the forward P/E is 17.9.
How much is Solstice Advanced Materials worth on the stock market?
Its market capitalisation is 9.6B USD and its enterprise value, debt included, is 11.3B USD.
How much debt does Solstice Advanced Materials have?
Its net debt (debt minus cash) is 1.7B USD. That is 1.88 times its EBITDA; the Basic Materials median is 1.41.
Does Solstice Advanced Materials pay a dividend?
Yes: its dividend yield is 0.50% and it pays out 11% of its earnings.
How has Solstice Advanced Materials stock performed over the last year?
It has risen 32.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 40.43 and 90.80 USD. Past performance does not guarantee future results.
What do analysts think of Solstice Advanced Materials?
8 analysts cover it; their average recommendation is “Strong buy” and their average target is 79.12 USD (+31.1% versus the price). It is an estimate, not market data.
