Solstice Advanced Materials Inc. (SOLS)
Valuation Overview•Is Solstice Advanced Materials Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 41/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
SOLS demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company maintains stable top-line performance paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 17.6% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $991.0M | +3.1% | — | — | — | |
| EBITDA | $239.0M | — | — | — | — | |
| Net Income | $85.0M | -43.8% | — | — | — | |
| EPS (Diluted) | $0.53 | -44.0% | — | — | — | |
| Free Cash Flow | $124.0M | -100.0% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 31.3% | 33.9% | 33.9% | 33.9% |
| Operating Margin | 17.6% | 20.5% | 20.5% | 20.5% |
| Net Margin | 5.3% | 11.4% | 11.4% | 11.4% |
| FCF Margin | 2.0% | 13.6% | 13.6% | 13.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.61 | $0.63 | +2.6% | ||
| Q1'26 | $0.40 | $0.26 | -35.0% | ||
| Q4'25 | $0.36 | $-0.22 | -161.5% |
Total return is +77.1% (1Y), outperforming the benchmark by +52.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +73.9% | +64.6% | — |
| 1Y | +77.1% | +52.1% | +0.3% |
| 3YCAGR | +21.0% | +1.2% | +0.3% |
| 5YCAGR | +12.1% | -0.5% | +0.3% |
| 10YCAGR | +5.9% | -7.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Solstice Advanced Materials Inc. (SOLS) valuation, health, and returns.
Solstice Advanced Materials Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -72.5% downside from DCF intrinsic value of $23.52)
Solstice Advanced Materials Inc. has multiple valuation anchors: DCF Intrinsic Value: $23.52 | Peer Relative Fair Value: $58.63 | Wall Street Analyst Target: $91.50 (implying +6.9% upside). A convergence of these signals offers higher conviction.
Solstice Advanced Materials Inc. displays fair financial health with a composite quality score of 41/100, supported by a Piotroski F-Score of 1/9, Return on Invested Capital (ROIC) of 14.8%.
Solstice Advanced Materials Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Solstice Advanced Materials Inc.'s current growth trajectory is Stable. The company achieved +3.1% 1Y revenue growth and -44.0% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 4 analysts. The consensus price target represents a +6.9% change from current levels.
Investment risks for Solstice Advanced Materials Inc. include: -17.2% 1-year max drawdown, high beta (1.51x market volatility). Volatility risk is characterized by a beta of 1.51x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.