SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
NYSE:SOLV - US83444M1018 - Common Stock
72.38 USD
+0.98 (+1.37%)
72.38 USD
0 (0%)
Taking everything into account, SOLV scores 3 out of 10 in our fundamental rating. SOLV was compared to 190 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of SOLV while its profitability can be described as average. SOLV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SOLV had positive earnings in the past year.
SOLV had a positive operating cash flow in the past year.
1.2 Ratios
SOLV has a better Return On Assets (2.52%) than 76.32% of its industry peers.
SOLV has a Return On Equity of 10.43%. This is amongst the best in the industry. SOLV outperforms 85.26% of its industry peers.
With a decent Return On Invested Capital value of 5.20%, SOLV is doing good in the industry, outperforming 77.89% of the companies in the same industry.
SOLV had an Average Return On Invested Capital over the past 3 years of 9.85%. This is in line with the industry average of 8.46%.
The 3 year average ROIC (9.85%) for SOLV is well above the current ROIC(5.20%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 10.43% | ||
| ROIC | 5.2% |
ROA(3y)7.62%
ROA(5y)N/A
ROE(3y)13.05%
ROE(5y)N/A
ROIC(3y)9.85%
ROIC(5y)N/A
1.3 Margins
SOLV has a Profit Margin of 4.53%. This is in the better half of the industry: SOLV outperforms 75.26% of its industry peers.
In the last couple of years the Profit Margin of SOLV has declined.
SOLV has a Operating Margin of 9.66%. This is in the better half of the industry: SOLV outperforms 77.37% of its industry peers.
SOLV's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.65%, SOLV is in line with its industry, outperforming 49.47% of the companies in the same industry.
SOLV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.66% | ||
| PM (TTM) | 4.53% | ||
| GM | 54.65% |
OM growth 3Y-16.68%
OM growth 5YN/A
PM growth 3Y-31.26%
PM growth 5YN/A
GM growth 3Y-2.48%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SOLV is creating some value.
Compared to 1 year ago, SOLV has about the same amount of shares outstanding.
SOLV has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that SOLV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SOLV (1.48) is comparable to the rest of the industry.
SOLV has a debt to FCF ratio of 53.90. This is a negative value and a sign of low solvency as SOLV would need 53.90 years to pay back of all of its debts.
SOLV has a Debt to FCF ratio of 53.90. This is in the better half of the industry: SOLV outperforms 66.32% of its industry peers.
A Debt/Equity ratio of 2.14 is on the high side and indicates that SOLV has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.14, SOLV is doing worse than 85.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 53.9 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.64
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.22 indicates that SOLV should not have too much problems paying its short term obligations.
SOLV's Current ratio of 1.22 is on the low side compared to the rest of the industry. SOLV is outperformed by 81.58% of its industry peers.
SOLV has a Quick Ratio of 1.22. This is a bad value and indicates that SOLV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SOLV (0.86) is worse than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for SOLV have decreased strongly by -64.49% in the last year.
The earnings per share for SOLV have been decreasing by -31.19% on average. This is quite bad
SOLV shows a small growth in Revenue. In the last year, the Revenue has grown by 2.21%.
SOLV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.34% yearly.
EPS 1Y (TTM)-64.49%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%8.33%
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%3.84%
3.2 Future
SOLV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.36% yearly.
SOLV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.49% yearly.
EPS Next Y-10.29%
EPS Next 2Y-4.03%
EPS Next 3Y1.36%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y0.9%
Revenue Next 3Y1.49%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.90, which indicates a very decent valuation of SOLV.
SOLV's Price/Earnings ratio is rather cheap when compared to the industry. SOLV is cheaper than 91.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, SOLV is valued rather cheaply.
SOLV is valuated reasonably with a Price/Forward Earnings ratio of 11.75.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaply inside the industry as 91.05% of the companies are valued more expensively.
SOLV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
SOLV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SOLV is cheaper than 80.00% of the companies in the same industry.
70.53% of the companies in the same industry are more expensive than SOLV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.55 | ||
| EV/EBITDA | 14.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.03%
EPS Next 3Y1.36%
5. Dividend
5.1 Amount
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
72.38
+0.98 (+1.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.73%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner Change-33.86%
Market Cap12.55B
Analysts73.68
Price Target88.5 (22.27%)
Short Float %2.61%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.33%
Min EPS beat(2)7.57%
Max EPS beat(2)15.09%
EPS beat(4)4
Avg EPS beat(4)10.65%
Min EPS beat(4)4.59%
Max EPS beat(4)15.36%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-0.05%
Max Revenue beat(2)0.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)0.68%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.03%
PT rev (3m)7.93%
EPS NQ rev (1m)2.35%
EPS NQ rev (3m)1.13%
EPS NY rev (1m)5.5%
EPS NY rev (3m)5.92%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 11.75 | ||
| P/S | 1.5 | ||
| P/FCF | 86.55 | ||
| P/OCF | 21.49 | ||
| P/B | 3.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.79 |
EPS(TTM)6.08
EY8.4%
EPS(NY)6.16
Fwd EY8.51%
FCF(TTM)0.84
FCFY1.16%
OCF(TTM)3.37
OCFY4.65%
SpS48.38
BVpS21.02
TBVpS-22.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 10.43% | ||
| ROCE | 6.5% | ||
| ROIC | 5.2% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 14.75% | ||
| OM | 9.66% | ||
| PM (TTM) | 4.53% | ||
| GM | 54.65% | ||
| FCFM | 1.73% |
ROA(3y)7.62%
ROA(5y)N/A
ROE(3y)13.05%
ROE(5y)N/A
ROIC(3y)9.85%
ROIC(5y)N/A
ROICexc(3y)10.1%
ROICexc(5y)N/A
ROICexgc(3y)49.33%
ROICexgc(5y)N/A
ROCE(3y)12.33%
ROCE(5y)N/A
ROICexcg growth 3Y-14.04%
ROICexcg growth 5YN/A
ROICexc growth 3Y-12.55%
ROICexc growth 5YN/A
OM growth 3Y-16.68%
OM growth 5YN/A
PM growth 3Y-31.26%
PM growth 5YN/A
GM growth 3Y-2.48%
GM growth 5YN/A
F-Score4
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 53.9 | ||
| Debt/EBITDA | 5.81 | ||
| Cap/Depr | 82.21% | ||
| Cap/Sales | 5.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.45% | ||
| Profit Quality | 38.16% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.48 |
F-Score4
WACC8.1%
ROIC/WACC0.64
Cap/Depr(3y)54.53%
Cap/Depr(5y)N/A
Cap/Sales(3y)3.74%
Cap/Sales(5y)N/A
Profit Quality(3y)131.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.49%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%8.33%
EPS Next Y-10.29%
EPS Next 2Y-4.03%
EPS Next 3Y1.36%
EPS Next 5YN/A
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%3.84%
Revenue Next Year3.27%
Revenue Next 2Y0.9%
Revenue Next 3Y1.49%
Revenue Next 5YN/A
EBIT growth 1Y-47.23%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year11.7%
EBIT Next 3Y5.54%
EBIT Next 5YN/A
FCF growth 1Y-50.46%
FCF growth 3Y-25.22%
FCF growth 5YN/A
OCF growth 1Y-38.12%
OCF growth 3Y-18.66%
OCF growth 5YN/A