Solstice Advanced Materials Inc.

SOLSdata completeness 100%3 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Solstice Advanced Materials Inc. earns about 19% on invested capital, far above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $29.85 and $38.74 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue$3.65B1$3.77B1$3.89B1
Net income$621M2$594M2$237M2
Operating cash flow$760M3$842M3$455M3
Capital expenditure$299M4$296M4$336M4
Free cash flow (derived)$461M3$546M3$119M3
Total debt$05$3.97B5
Cash & equivalents$606M6$661M7$534M7
Diluted shares158.7M158.7M158.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$88.8
your share of equity
Profit it earned you last year
$14.92
Free cash flow it threw off
$7.49
Debt you’d be carrying
$249.97

10 shares is a claim on $88.8 of net worth that earned you $14.92 and generated $7.49 of cash last year, against $249.97 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
19% avg · 3y
FY23 26%FY24 23%FY25 7%

It earned about 19% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+0% shares · 3y

Share count is roughly flat over 3 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $29.85 and $38.74 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$34.21
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$461M
DCF · Growth Exit 5Y
$29.85
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$461M
Earnings Power Value
$38.74
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$594M
  • growthAssumed0.0%
Graham Number
$17.25
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $29.85
The three cases
Bear0.0%$19.82
Base5.0%$29.85
Bull10.0%$41.85

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2023-12-31 · accession 0002064953-26-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-12-31 · accession 0002064953-26-000008 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0002064953-26-000008 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2023-12-31 · accession 0002064953-26-000008 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 10-K · period ending 2024-12-31 · accession 0002064953-26-000008 (LongTermDebtNoncurrent)
  6. 10-K · period ending 2023-12-31 · accession 0002064953-26-000008 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  7. 10-K · period ending 2024-12-31 · accession 0002064953-26-000008 (CashAndCashEquivalentsAtCarryingValue)