CluenexSolstice Advanced Materials SOLS
Solstice Advanced Materials scores weak on business quality (3.7 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Solstice Advanced Materials does
Solstice Advanced Materials manufactures specialty chemicals, selling directly to industrial clients who rely on its formulations for manufacturing. Revenue reaches $4.1B annually, driven by core chemical product sales.
- What it does best
Solstice operates with a gross margin of 30.6%, landing in the middle of the pack relative to its basic materials peers. This margin reflects stable formulation pricing power in specialized chemical applications, though it leaves little room for cost inflation without squeezing profits.
- The main risk
Net debt has climbed to $1.9B while free cash flow dropped to $175M, creating a heavy cash drain. With debt-to-equity sitting at 1.7x, capital returns of $1.5B in dividends and $677M in buybacks far exceed incoming cash generation.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at 18.4% while return on equity is 10.9%. Margins are contracting as higher capital costs weigh down the bottom line.
An operating margin of 18.4% sits in the top quartile of its sector at the 76th percentile, protecting profitability even as top-line growth stalls.
Revenue grew 3.1% to reach $4.1B, showing a sluggish expansion rate that sits near the middle of its sector at the 47th percentile.
Total debt of $2.4B overshadows $534M in cash, pushing net debt to $1.9B. Free cash flow dropped to $175M from $546M previously, meaning payouts heavily exceed incoming cash.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on SOLS
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Solstice Advanced Materials scores weak on the Cluenex quality check (3.7 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 4, 2026.
See SOLS today
- Today's verdict on SOLS, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Solstice Advanced Materials (SOLS)”, https://cluenex.com/stocks/sols/, data as of Oct 10, 2026.