Solstice Advanced MaterialsSOLS +2.19%19 ROE % is 23.47% as of Mar. 2026, which is 26% above its 10-year median of 18.65. GuruFocus rates SOLS with a GF Score™ of 19/100. The stock has 6 warning signs investors should review. Among 1,590 Chemicals companies, Solstice Advanced Materials ranks better than 53.08% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Chemicals subindustry, Solstice Advanced Materials's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Solstice Advanced Materials ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Solstice Advanced Materials's ROE % distribution charts can be found below:
* The bar in red indicates where Solstice Advanced Materials's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Solstice Advanced Materials (SOLS) has a ROE % of 23.47% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Solstice Advanced Materials and its competitors. This is 26% above median its historical median of 18.65. Over the past decade, Solstice Advanced Materials' ROE % has ranged from 5.82 to 19.96. According to the industry distribution chart, Solstice Advanced Materials ranks #746 out of 1590 companies in the Chemicals industry, placing it in the top 46.9%.
Is Solstice Advanced Materials' ROE % too high?
Solstice Advanced Materials' current ROE % of 23.47% is 26% above median its 10-year median of 18.65. Over the past 10 years, this metric has ranged from a low of 5.82 to a high of 19.96. The Chemicals industry median ROE % is 5.20. Solstice Advanced Materials' value of 23.47% is 351.8% above this industry median. Based on the distribution chart, Solstice Advanced Materials ranks #746 out of 1590 companies in the Chemicals industry, which is above the industry midpoint. Overall, Solstice Advanced Materials has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Solstice Advanced Materials' ROE % compare to RPM and WLK?
According to the Chemicals industry distribution chart, Solstice Advanced Materials ranks #746 out of 1590 companies for ROE %. This puts Solstice Advanced Materials in the upper half of its industry. The industry median ROE % is 5.20. Solstice Advanced Materials' value of 23.47% is 351.8% above this benchmark. Historically, Solstice Advanced Materials' own ROE % has ranged from 5.82 to 19.96 over the past decade. While the company's 10-year median is 18.65 vs. the industry median of 5.20, Solstice Advanced Materials has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.20, based on 1,590 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Solstice Advanced Materials's current ROE % of 23.47% is 351.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Solstice Advanced Materials and its competitors. For the Chemicals industry, the median ROE % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solstice Advanced Materials's current ROE % is 23.47%, which is 26% above median its own 10-year median of 18.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solstice Advanced Materials stock overvalued right now?
Solstice Advanced Materials (SOLS) has a current ROE % of 23.47%. The current ROE % is 23.47%, which is 26% above median its 10-year median of 18.65 and 351.8% above the Chemicals industry median of 5.20. Solstice Advanced Materials' overall GF Score™ is 19/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Solstice Advanced Materials (SOLS), the current ROE % is 23.47% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Solstice Advanced Materials is a diversified specialty chemicals company created in late 2025 after being spun off from Honeywell. It sells chemicals and materials to a wide range of end markets. Its largest product category is refrigerants used in heating, ventilation and air conditioning systems, and autos, where Solstice sells low global warming potential refrigerants. The company also sells materials used for building and construction, semiconductor production, healthcare packaging, and defense. Additionally, Solstice runs the only US uranium conversion business currently in operation.
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