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Solstice Advanced Materials Inc. (SOLS) Fundamental Analysis & AI Grade 2026

SOLS Nasdaq Chemicals & Allied Products DE CIK: 0002064953
Updated This Month • Analysis: May 8, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
72% Confidence
N/A
C
72% Conf
Pending
Analysis scheduled

📊 SOLS Key Takeaways

Revenue: $991.0M
Net Margin: 8.6%
Free Cash Flow: $124.0M
Current Ratio: 1.43x
Debt/Equity: 1.32x
EPS: $0.53
AI Grade: C with 72% confidence
Solstice Advanced Materials Inc. (SOLS) receives a C fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $991.0M, net profit margin of 8.6%, and return on equity (ROE) of 5.7%, Solstice Advanced Materials Inc. demonstrates mixed fundamentals in the Materials sector. Below is our complete SOLS stock analysis for 2026.

Is Solstice Advanced Materials Inc. (SOLS) a Good Investment?

Claude

Solstice exhibits sharp profitability deterioration with net income declining 16.8% and EPS down 60.2% despite 3.1% revenue growth, indicating severe margin compression. Weak returns on equity (5.7%) and assets (1.5%) combined with moderate leverage (1.32x debt/equity) and slow revenue growth in a mature chemicals sector present limited recovery catalysts.

Solstice Advanced Materials Inc. Key Strengths (SOLS)

Claude
  • + Strong free cash flow generation at $124M with 12.5% FCF margin, demonstrating operational cash-generating ability
  • + Solid cash position of $642M provides financial flexibility and liquidity cushion
  • + Positive net profitability at 8.6% net margin despite earnings decline, showing business remains fundamentally profitable

SOLS Stock Risks: Solstice Advanced Materials Inc. Investment Risks

Claude
  • ! Severe profitability collapse with EPS declining 60.2% year-over-year while revenue barely grew 3.1%, signaling margin compression and cost control issues
  • ! Chronically weak returns on equity (5.7%) and assets (1.5%) indicate inefficient capital deployment and value destruction relative to cost of capital
  • ! Moderate-to-high leverage of 1.32x debt/equity with $2.0B long-term debt against $1.5B equity limits strategic flexibility in challenging environment

Key Metrics to Watch

Claude
  • * Operating margin trend and gross margin recovery (indicating whether compression is temporary or structural)
  • * Debt reduction trajectory relative to free cash flow generation ($124M annual FCF should accelerate deleveraging)
  • * Return on equity improvement path (5.7% is below typical weighted average cost of capital)

Solstice Advanced Materials Inc. (SOLS) Financial Metrics & Key Ratios

Revenue
$991.0M
Net Income
$85.0M
EPS (Diluted)
$0.53
Free Cash Flow
$124.0M
Total Assets
$5.7B
Cash Position
$642.0M

💡 AI Analyst Insight

Solstice Advanced Materials Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

SOLS Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 13.7%
Net Margin 8.6%
ROE 5.7%
ROA 1.5%
FCF Margin 12.5%

SOLS vs Materials Sector: How Solstice Advanced Materials Inc. Compares

How Solstice Advanced Materials Inc. compares to Materials sector averages

Net Margin
SOLS 8.6%
vs
Sector Avg 10.0%
SOLS Sector
ROE
SOLS 5.7%
vs
Sector Avg 14.0%
SOLS Sector
Current Ratio
SOLS 1.4x
vs
Sector Avg 1.6x
SOLS Sector
Debt/Equity
SOLS 1.3x
vs
Sector Avg 0.6x
SOLS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Solstice Advanced Materials Inc. Stock Overvalued? SOLS Valuation Analysis 2026

Based on fundamental analysis, Solstice Advanced Materials Inc. shows some fundamental concerns relative to the Materials sector in 2026.

Return on Equity
5.7%
Sector avg: 14%
Net Profit Margin
8.6%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.32x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Solstice Advanced Materials Inc. Balance Sheet: SOLS Debt, Cash & Liquidity

Current Ratio
1.43x
Quick Ratio
1.02x
Debt/Equity
1.32x
Debt/Assets
74.4%
Interest Coverage
N/A
Long-term Debt
$2.0B

SOLS Revenue & Earnings Growth: 5-Year Financial Trend

SOLS 5-year financial data: Year 2025: Revenue $3.9B, Net Income $621.0M, EPS $3.91.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Solstice Advanced Materials Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.91 reflects profitable operations.

SOLS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
12.5%
Free cash flow / Revenue

SOLS Quarterly Earnings & Performance

Quarterly financial performance data for Solstice Advanced Materials Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $897.0M $85.0M $0.53
Q3 2025 $907.0M -$35.0M N/A

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Solstice Advanced Materials Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$199.0M
Cash generated from operations
Capital Expenditures
$75.0M
Investment in assets
Dividends Paid
$12.0M
Returned to shareholders

SOLS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Solstice Advanced Materials Inc. (CIK: 0002064953)

📋 Recent SEC Filings

Date Form Document Action
May 27, 2026 4 xslF345X06/wk-form4_1779914869.xml View →
May 27, 2026 4 xslF345X06/wk-form4_1779914791.xml View →
May 27, 2026 4 xslF345X06/wk-form4_1779914665.xml View →
May 27, 2026 4 xslF345X06/wk-form4_1779914597.xml View →
May 27, 2026 4 xslF345X06/wk-form4_1779914452.xml View →

Frequently Asked Questions about SOLS

What is the AI rating for SOLS?

Solstice Advanced Materials Inc. (SOLS) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SOLS's key strengths?

Claude: Strong free cash flow generation at $124M with 12.5% FCF margin, demonstrating operational cash-generating ability. Solid cash position of $642M provides financial flexibility and liquidity cushion.

What are the risks of investing in SOLS?

Claude: Severe profitability collapse with EPS declining 60.2% year-over-year while revenue barely grew 3.1%, signaling margin compression and cost control issues. Chronically weak returns on equity (5.7%) and assets (1.5%) indicate inefficient capital deployment and value destruction relative to cost of capital.

What is SOLS's revenue and growth?

Solstice Advanced Materials Inc. reported revenue of $991.0M.

Does SOLS pay dividends?

Solstice Advanced Materials Inc. pays dividends, with $12.0M distributed to shareholders in the trailing twelve months.

Where can I find SOLS SEC filings?

Official SEC filings for Solstice Advanced Materials Inc. (CIK: 0002064953) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SOLS's EPS?

Solstice Advanced Materials Inc. has a diluted EPS of $0.53.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is SOLS's fundamental grade?

Based on our AI fundamental analysis in May 2026, Solstice Advanced Materials Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SOLS stock overvalued or undervalued?

Valuation metrics for SOLS: ROE of 5.7% (sector avg: 14%), net margin of 8.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

What is SOLS's AI grade for 2026?

Our dual AI analysis gives Solstice Advanced Materials Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SOLS's free cash flow?

Solstice Advanced Materials Inc.'s operating cash flow is $199.0M, with capital expenditures of $75.0M. FCF margin is 12.5%.

How does SOLS compare to other Materials stocks?

Vs Materials sector averages: Net margin 8.6% (avg: 10%), ROE 5.7% (avg: 14%), current ratio 1.43 (avg: 1.6).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 8, 2026 | Data as of: 2026-03-31 | Powered by Claude AI