Soft 3Q for Solvay on Rising Input Costs and Currency Headwinds; Shares Overvalued
We are maintaining no-moat Solvay’s EUR 95 fair value estimate after reviewing third-quarter results. EBITDA increased 1% over 2016 with a 60-basis-point drop in margin as a strong 9% increase in volumes was largely offset by higher raw material costs and currency headwinds. At current levels, shares look overvalued.EBITDA increased 1% over 2016 in the advanced materials segment, with a 70-basis-point margin increase. Volumes increased a solid 5%. Positive sales growth was concentrated in spec...
Solvay is engaged in chemical and plastic businesses worldwide. Co. offers chemical products such as advanced materials, barium strontium, calcium chloride, caustic soda, chlorinated products, fluor, peroxygen products, polyglycerols, precipitated calcium carbonate, soda ash, and sodium bicarbonate. It also provides specialty polymers, such as Spire ultra polymers, Solviva biomaterials, and sulfone polymers. Co. structures its activities around five operating segments: Advanced Formulations, Advanced Materials, Performance Chemicals, Functional Polymers and Corporate & Business Services, each with its own specific business model and each comprised of Global Business Units (GBUs).
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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