SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - NYSE:SOLV - US83444M1018 - Common Stock
70.46 USD
-1.36 (-1.89%)
70.46 USD
0 (0%)
Overall SOLV gets a fundamental rating of 3 out of 10. We evaluated SOLV against 190 industry peers in the Health Care Equipment & Supplies industry. While SOLV is still in line with the averages on profitability rating, there are concerns on its financial health. 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
The Return On Assets of SOLV (2.52%) is better than 76.32% of its industry peers.
The Return On Equity of SOLV (10.43%) is better than 85.26% of its industry peers.
SOLV has a better Return On Invested Capital (5.20%) than 77.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOLV is in line with the industry average of 8.43%.
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 better Profit Margin (4.53%) than 75.26% of its industry peers.
In the last couple of years the Profit Margin of SOLV has declined.
With a decent Operating Margin value of 9.66%, SOLV is doing good in the industry, outperforming 77.37% of the companies in the same industry.
In the last couple of years the Operating Margin of SOLV has declined.
SOLV's Gross Margin of 54.65% is in line compared to the rest of the industry. SOLV outperforms 49.47% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SOLV is still 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.
SOLV has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
SOLV has a Debt to Equity ratio of 2.14. This is amonst the worse of the industry: SOLV underperforms 85.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 53.9 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.65
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.22 indicates that SOLV should not have too much problems paying its short term obligations.
The Current ratio of SOLV (1.22) is worse than 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.
SOLV's Quick ratio of 0.86 is on the low side compared to the rest of the industry. SOLV is outperformed by 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
SOLV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.49%.
The earnings per share for SOLV have been decreasing by -31.19% on average. This is quite bad
Looking at the last year, SOLV shows a small growth in Revenue. The Revenue has grown by 2.21% in the last year.
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 0.83% yearly.
EPS Next Y-10.29%
EPS Next 2Y-4.03%
EPS Next 3Y1.36%
EPS Next 5YN/A
Revenue Next Year1.12%
Revenue Next 2Y-0.31%
Revenue Next 3Y0.83%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 11.59, the valuation of SOLV can be described as very reasonable.
Based on the Price/Earnings ratio, SOLV is valued cheaper than 90.00% of the companies in the same industry.
SOLV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.06.
SOLV is valuated reasonably with a Price/Forward Earnings ratio of 11.43.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaply inside the industry as 91.05% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SOLV to the average of the S&P500 Index (22.64), we can say SOLV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOLV indicates a somewhat cheap valuation: SOLV is cheaper than 78.95% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOLV indicates a somewhat cheap valuation: SOLV is cheaper than 71.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.26 | ||
| EV/EBITDA | 14.71 |
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 |
70.46
-1.36 (-1.89%)
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-33.64%
Market Cap12.22B
Analysts73.68
Price Target88.07 (24.99%)
Short Float %2.89%
Short Ratio4.3
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)1.54%
PT rev (3m)5.09%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)3.01%
EPS NY rev (1m)0%
EPS NY rev (3m)5.54%
Revenue NQ rev (1m)-2.54%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)-2.09%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 11.43 | ||
| P/S | 1.46 | ||
| P/FCF | 84.26 | ||
| P/OCF | 20.92 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.71 |
EPS(TTM)6.08
EY8.63%
EPS(NY)6.16
Fwd EY8.75%
FCF(TTM)0.84
FCFY1.19%
OCF(TTM)3.37
OCFY4.78%
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
WACC8.04%
ROIC/WACC0.65
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 Year1.12%
Revenue Next 2Y-0.31%
Revenue Next 3Y0.83%
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