# Washington H Soul Pattinson & Company (SOL.AU)

Canonical: https://gigainvestors.com/s/SOL.AU

Analysis as of: 2026-10-16T07:35:33.824Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 46.04 per share; close as of 2026-10-15.

Estimated value: low AUD 36.94 per share, central AUD 42.04 per share, high AUD 48.82 per share. Buy at or below the central value AUD 42.04 per share. Valuation as of 2026-10-16T07:35:33.824Z; scenarios are not confidence intervals.

Expected annual return: 9.4% at the stated quote. About 9.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 3.29×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.37×

- FY2018: 0.44×

- FY2019: 0.25×

- FY2020: 0.03×

- FY2021: 0.13×

- FY2022: 0.52×

- FY2023: -0.16×

- FY2024: -0.15×

- FY2025: -0.44×

- FY2026: -0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 6.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 1.6%

- ROIC, second-lowest year: -1.4%

- Typical minus recent gross margin: 6.8 pp

- Typical gross margin (annual median): 34.5%

- Recent gross margin (lower of latest and 3-year median): 27.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 15.1%

- ROIC including acquisitions, ten-year median: 6.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 8.7%

- FY2018: 12.8%

- FY2019: 8.0%

- FY2020: 0.7%

- FY2021: 2.5%

- FY2022: 11.0%

- FY2023: -0.8%

- FY2024: -1.0%

- FY2025: -2.4%

- FY2026: -1.4%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 3.5B

- Net income, five-year total: AUD 3.7B

- Return on incremental invested capital: -31.8%

- Working capital / revenue, annual change: 4.4 pp

- Working capital / revenue, change between three-year averages: 27.2 pp

- Working capital / revenue, final three-year average: 34.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.66×

- FY2023: 0.77×

- FY2024: 0.96×

- FY2025: 0.94×

- FY2026: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.7% vs -1.4%

- Per-share earnings: 1.11 to 1.53 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.7%

- Ordinary dilution, 5-year annual growth: 9.3%

- Market cap gain: AUD 13B

- Cumulative retained earnings: AUD 3.4B

- Diluted shares, 10-year annual growth: 4.7%

- Diluted shares, 5-year annual growth: 9.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 4.0%

- Per-share value change: AUD 0.41

- Per-share value, starting three-year median: AUD 1.11

- Per-share value, ending three-year median: AUD 1.53

- Buybacks concentrated in cheaper years (correlation): -0.14

- Average buyback yield: 0.1%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 334M

- Cumulative net income, 10 years: AUD 5.8B

- ROIC, first three-year median: 8.7%

- ROIC, last three-year median: -1.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 1.39

- FY2018: AUD 1.11

- FY2019: AUD 1.04

- FY2020: AUD 3.98

- FY2021: AUD 1.13

- FY2022: AUD -0.04

- FY2023: AUD 1.91

- FY2024: AUD 1.53

- FY2025: AUD 1.11

- FY2026: AUD 5.77

### accounting: fail

- Sloan accruals exceed 10%

- earnings not backed by cash

- Sloan accruals: 15.9%

- Receivables to sales index (DSRI): 0.64×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -0.02×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -1.4%

- FY2018: -4.5%

- FY2019: -2.0%

- FY2020: 7.1%

- FY2021: -3.2%

- FY2022: -6.8%

- FY2023: -0.8%

- FY2024: 0.7%

- FY2025: 0.3%

- FY2026: 15.9%

## Holders

## Price story

Price needs cash profits to grow 2% a year for ten years · sales +143.4%

Story as of 2026-10-16T10:00:05.571Z; price observation 2026-10-15.

Price needs cash profits to grow 2% a year for ten years

### Sales · FY2025–2026

sales +143.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 922M 

- FY2018: AUD 1.1B 

- FY2019: AUD 1.5B 

- FY2020: AUD 1.3B 

- FY2021: AUD 1.1B 

- FY2022: AUD 2.6B 

- FY2023: AUD 363M 

- FY2024: AUD 558M 

- FY2025: AUD 613M 

- FY2026: AUD 1.5B 

### Gross margin · FY2026

gross margin 31.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 41.1% 

- FY2018: 49.5% 

- FY2019: 37.5% 

- FY2020: 22.3% 

- FY2021: 49.9% 

- FY2022: 59.8% 

- FY2023: 29.9% 

- FY2024: 27.7% 

- FY2025: 25.6% 

- FY2026: 31.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in capital markets; annual sales are AUD 1.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2026: revenue 1493000000; grossProfit 470000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 25.6% to 31.5% during 2024–26; it earns 1.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2024: grossProfit / revenue = 27.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2025: grossProfit / revenue = 25.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2026: grossProfit / revenue = 31.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); 10-year return on capital observations [[2017,0.08730214227298737],[2018,0.1277866479881185],[2019,0.07957811925612869],[2020,0.006920284344650366],[2021,0.02459917345333308],[2022,0.11002420101129202],[2023,-0.007533659586052459],[2024,-0.009607812253898252],[2025,-0.02447389121357262],[2026,-0.01357329579730545]]; median 0.015759728898991722. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 2.1% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2017: growth capex 0; upkeep 96168000; owner earnings 340964000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2018: growth capex 39460000; upkeep 109697000; owner earnings 266846000. Growth capex / owner earnings = 0.14787555369014338.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2019: growth capex 30591000; upkeep 164243000; owner earnings 246382600. Growth capex / owner earnings = 0.12416055354558317.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2020: growth capex 0; upkeep 223066000; owner earnings 951532800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2021: growth capex 0; upkeep 189504000; owner earnings 228118600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2023: growth capex 0; upkeep 182305000; owner earnings 532214800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2024: growth capex 112400000; upkeep 61200000; owner earnings 479580000. Growth capex / owner earnings = 0.23437174194086494.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2025: growth capex 48500000; upkeep 74100000; owner earnings 343440000. Growth capex / owner earnings = 0.1412182622874447.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2026: growth capex 47000000; upkeep 116000000; owner earnings 2191000000. Growth capex / owner earnings = 0.021451392058420813.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); Dividend observations: [[2017,148925000],[2018,178786000],[2019,211452000],[2020,206184000],[2021,165337000],[2022,420000000],[2023,339415000],[2024,328500000],[2025,355000000],[2026,399000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); FY2026: cash repurchases 72000000 AUD.

### Are managers owners

Insiders own 10.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SOL.AU SharesStats.PercentInsiders = 10.462 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 2% yearly over ten years; actual growth was 25.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.824Z); Ten-year compound average after fade. Initial solved rate 0.01620843881302625. Price 46.04; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.5902546001378475 → FY2026 5.773022463143954. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 15.90 per share

- 2016-11: AUD 14.70 per share

- 2016-12: AUD 15.13 per share

- 2017-01: AUD 15.60 per share

- 2017-02: AUD 16.05 per share

- 2017-03: AUD 18.00 per share

- 2017-04: AUD 18.84 per share

- 2017-05: AUD 17.66 per share

- 2017-06: AUD 16.67 per share

- 2017-07: AUD 17.64 per share

- 2017-08: AUD 17.70 per share

- 2017-09: AUD 15.93 per share

- 2017-10: AUD 16.71 per share

- 2017-11: AUD 16.91 per share

- 2017-12: AUD 17.80 per share

- 2018-01: AUD 17.23 per share

- 2018-02: AUD 17.85 per share

- 2018-03: AUD 18.61 per share

- 2018-04: AUD 19.41 per share

- 2018-05: AUD 19.53 per share

- 2018-06: AUD 20.69 per share

- 2018-07: AUD 21.82 per share

- 2018-08: AUD 23.76 per share

- 2018-09: AUD 25.96 per share

- 2018-10: AUD 28.88 per share

- 2018-11: AUD 26.22 per share

- 2018-12: AUD 24.89 per share

- 2019-01: AUD 26.31 per share

- 2019-02: AUD 29.43 per share

- 2019-03: AUD 26.31 per share

- 2019-04: AUD 22.99 per share

- 2019-05: AUD 22.32 per share

- 2019-06: AUD 21.99 per share

- 2019-07: AUD 22.71 per share

- 2019-08: AUD 20.89 per share

- 2019-09: AUD 21.03 per share

- 2019-10: AUD 21.72 per share

- 2019-11: AUD 22.32 per share

- 2019-12: AUD 21.50 per share

- 2020-01: AUD 21.55 per share

- 2020-02: AUD 19.52 per share

- 2020-03: AUD 16.97 per share

- 2020-04: AUD 18.54 per share

- 2020-05: AUD 18.94 per share

- 2020-06: AUD 19.53 per share

- 2020-07: AUD 19.55 per share

- 2020-08: AUD 20.93 per share

- 2020-09: AUD 23.51 per share

- 2020-10: AUD 25.34 per share

- 2020-11: AUD 29.04 per share

- 2020-12: AUD 30.09 per share

- 2021-01: AUD 27.18 per share

- 2021-02: AUD 29.88 per share

- 2021-03: AUD 31.58 per share

- 2021-04: AUD 30.27 per share

- 2021-05: AUD 29.56 per share

- 2021-06: AUD 33.73 per share

- 2021-07: AUD 32.65 per share

- 2021-08: AUD 35.82 per share

- 2021-09: AUD 39.02 per share

- 2021-10: AUD 32.48 per share

- 2021-11: AUD 31.08 per share

- 2021-12: AUD 29.61 per share

- 2022-01: AUD 27.31 per share

- 2022-02: AUD 25.18 per share

- 2022-03: AUD 28.62 per share

- 2022-04: AUD 27.81 per share

- 2022-05: AUD 25.70 per share

- 2022-06: AUD 23.54 per share

- 2022-07: AUD 25.69 per share

- 2022-08: AUD 25.70 per share

- 2022-09: AUD 26.79 per share

- 2022-10: AUD 27.94 per share

- 2022-11: AUD 28.31 per share

- 2022-12: AUD 27.66 per share

- 2023-01: AUD 28.71 per share

- 2023-02: AUD 29.16 per share

- 2023-03: AUD 30.20 per share

- 2023-04: AUD 31.45 per share

- 2023-05: AUD 32.12 per share

- 2023-06: AUD 31.78 per share

- 2023-07: AUD 32.95 per share

- 2023-08: AUD 33.01 per share

- 2023-09: AUD 32.59 per share

- 2023-10: AUD 33.42 per share

- 2023-11: AUD 33.50 per share

- 2023-12: AUD 32.77 per share

- 2024-01: AUD 34.40 per share

- 2024-02: AUD 34.54 per share

- 2024-03: AUD 33.61 per share

- 2024-04: AUD 32.67 per share

- 2024-05: AUD 31.04 per share

- 2024-06: AUD 32.82 per share

- 2024-07: AUD 35.50 per share

- 2024-08: AUD 34.50 per share

- 2024-09: AUD 34.75 per share

- 2024-10: AUD 33.47 per share

- 2024-11: AUD 34.80 per share

- 2024-12: AUD 34.22 per share

- 2025-01: AUD 34.24 per share

- 2025-02: AUD 34.11 per share

- 2025-03: AUD 34.69 per share

- 2025-04: AUD 37.21 per share

- 2025-05: AUD 36.93 per share

- 2025-06: AUD 42.01 per share

- 2025-07: AUD 40.58 per share

- 2025-08: AUD 43.76 per share

- 2025-09: AUD 38.49 per share

- 2025-10: AUD 37.60 per share

- 2025-11: AUD 37.82 per share

- 2025-12: AUD 37.14 per share

- 2026-01: AUD 38.59 per share

- 2026-02: AUD 38.25 per share

- 2026-03: AUD 40.40 per share

- 2026-04: AUD 42.17 per share

- 2026-05: AUD 43.50 per share

- 2026-06: AUD 46.15 per share

- 2026-07: AUD 46.23 per share

- 2026-08: AUD 44.48 per share

- 2026-09: AUD 47.76 per share

- 2026-10: AUD 45.80 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 5.71 per share, central AUD 6.86 per share, high AUD 7.99 per share

- FY2018: low AUD 14.28 per share, central AUD 19.18 per share, high AUD 22.47 per share

- FY2019: low AUD 16.82 per share, central AUD 19.14 per share, high AUD 22.23 per share

- FY2020: low AUD 15.18 per share, central AUD 17.28 per share, high AUD 20.06 per share

- FY2021: low AUD 11.51 per share, central AUD 13.10 per share, high AUD 15.21 per share

- FY2022: low AUD 20.51 per share, central AUD 29.29 per share, high AUD 34.40 per share

- FY2023: low AUD 2.34 per share, central AUD 2.66 per share, high AUD 3.09 per share

- FY2024: low AUD 13.46 per share, central AUD 15.31 per share, high AUD 17.78 per share

- FY2025: low AUD 11.47 per share, central AUD 13.05 per share, high AUD 15.16 per share

- FY2026: low AUD 36.98 per share, central AUD 42.08 per share, high AUD 48.87 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:17.279Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.