2024-06-04 09:44:48 ET
Summary
- Solvay recently executed a separation transaction, refinanced its balance sheet, and announced capacity expansion initiatives.
- The company's new products, such as Augeo and Alve-One, could drive future growth.
- Solvay appears undervalued compared to its peers, trading at a lower EBITDA multiple.
Solvay SA ( SVYSF ) recently executed a separation transaction, refinanced its balance sheet, and announced several initiatives to expand capacity. Management also noted new products such as a bio-based carbon-neutral called Augeo, and the new agent Alve-One. Also, considering the current dividend yield and the fact that leverage appears close to 1.4x, I think SVYSF does appear undervalued. It is trading at close to 3.7x TTM EBITDA with peers trading at close to 7x-10x EBITDA. My financial model indicated a significant upside in the stock valuation.
Solvay: Separation And Current Undervaluation At 3.7x TTM EBITDA
Solvay is an international company focused on developing high-tech chemical products with various final applications. The company raised most of its revenue from Europe, while North and Latin America have played essential roles in its recent expansion....
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Solvay: Very Undervalued After The Spinoff