SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
NYSE:SOLV - New York Stock Exchange, Inc. - US83444M1018 - Common Stock - Currency: USD
Overall SOLV gets a fundamental rating of 3 out of 10. We evaluated SOLV against 187 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
With a decent Return On Assets value of 2.61%, SOLV is doing good in the industry, outperforming 76.47% of the companies in the same industry.
SOLV has a better Return On Equity (11.62%) than 87.17% of its industry peers.
SOLV has a better Return On Invested Capital (5.56%) than 79.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOLV is in line with the industry average of 7.89%.
The 3 year average ROIC (9.85%) for SOLV is well above the current ROIC(5.56%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 11.62% | ||
| ROIC | 5.56% |
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
The Profit Margin of SOLV (4.56%) is better than 77.01% of its industry peers.
In the last couple of years the Profit Margin of SOLV has declined.
SOLV has a Operating Margin of 10.01%. This is in the better half of the industry: SOLV outperforms 77.01% of its industry peers.
In the last couple of years the Operating Margin of SOLV has declined.
SOLV's Gross Margin of 54.71% is in line compared to the rest of the industry. SOLV outperforms 50.27% of its industry peers.
SOLV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.01% | ||
| PM (TTM) | 4.56% | ||
| GM | 54.71% |
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.
The number of shares outstanding for SOLV remains at a similar level compared to 1 year ago.
Compared to 1 year ago, SOLV has a worse debt to assets ratio.
2.2 Solvency
SOLV has an Altman-Z score of 1.56. This is a bad value and indicates that SOLV is not financially healthy and even has some risk of bankruptcy.
SOLV has a Altman-Z score of 1.56. This is comparable to the rest of the industry: SOLV outperforms 55.62% of its industry peers.
SOLV has a debt to FCF ratio of 20.82. This is a negative value and a sign of low solvency as SOLV would need 20.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.82, SOLV is in the better half of the industry, outperforming 71.66% of the companies in the same industry.
A Debt/Equity ratio of 2.40 is on the high side and indicates that SOLV has dependencies on debt financing.
SOLV's Debt to Equity ratio of 2.40 is on the low side compared to the rest of the industry. SOLV is outperformed by 87.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 20.82 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.64
WACC8.63%
2.3 Liquidity
SOLV has a Current Ratio of 1.19. This is a normal value and indicates that SOLV is financially healthy and should not expect problems in meeting its short term obligations.
SOLV has a Current ratio of 1.19. This is amonst the worse of the industry: SOLV underperforms 83.96% of its industry peers.
A Quick Ratio of 0.85 indicates that SOLV may have some problems paying its short term obligations.
SOLV has a worse Quick ratio (0.85) than 84.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for SOLV have decreased strongly by -76.29% in the last year.
Measured over the past years, SOLV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.19% on average per year.
Looking at the last year, SOLV shows a very negative growth in Revenue. The Revenue has decreased by -18.65% in the last year.
The Revenue has been growing slightly by 0.34% on average over the past years.
EPS 1Y (TTM)-76.29%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-35.58%
Revenue 1Y (TTM)-18.65%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%2.68%
3.2 Future
Based on estimates for the next years, SOLV will show a small growth in Earnings Per Share. The EPS will grow by 1.09% on average per year.
The Revenue is expected to grow by 1.69% on average over the next years.
EPS Next Y-15%
EPS Next 2Y-4.96%
EPS Next 3Y1.09%
EPS Next 5YN/A
Revenue Next Year2.33%
Revenue Next 2Y1.23%
Revenue Next 3Y1.69%
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
A Price/Earnings ratio of 13.15 indicates a correct valuation of SOLV.
89.30% of the companies in the same industry are more expensive than SOLV, based on the Price/Earnings ratio.
SOLV is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.95 indicates a correct valuation of SOLV.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaper than 87.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. SOLV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLV is valued a bit cheaper than the industry average as 78.61% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SOLV is valued cheaply inside the industry as 80.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.63 | ||
| EV/EBITDA | 15.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.96%
EPS Next 3Y1.09%
5. Dividend
5.1 Amount
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.25
+0.36 (+0.46%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.76%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner Change0.29%
Market Cap13.54B
Analysts70
Price Target83.81 (7.11%)
Short Float %3.03%
Short Ratio4.11
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)6.08%
Min EPS beat(2)4.59%
Max EPS beat(2)7.57%
EPS beat(4)4
Avg EPS beat(4)7.29%
Min EPS beat(4)1.62%
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)-0.07%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)0.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
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)2.2%
PT rev (3m)2.85%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.95 | ||
| P/S | 1.63 | ||
| P/FCF | 35.63 | ||
| P/OCF | 17.65 | ||
| P/B | 4.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.15 |
EPS(TTM)5.95
EY7.6%
EPS(NY)6.04
Fwd EY7.72%
FCF(TTM)2.2
FCFY2.81%
OCF(TTM)4.43
OCFY5.67%
SpS48.02
BVpS18.85
TBVpS-23.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 11.62% | ||
| ROCE | 6.96% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 16.32% | ||
| OM | 10.01% | ||
| PM (TTM) | 4.56% | ||
| GM | 54.71% | ||
| FCFM | 4.57% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 20.82 | ||
| Debt/EBITDA | 5.67 | ||
| Cap/Depr | 71.01% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.7% | ||
| Profit Quality | 100.26% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.56 |
F-Score4
WACC8.63%
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)-76.29%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-35.58%
EPS Next Y-15%
EPS Next 2Y-4.96%
EPS Next 3Y1.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.65%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%2.68%
Revenue Next Year2.33%
Revenue Next 2Y1.23%
Revenue Next 3Y1.69%
Revenue Next 5YN/A
EBIT growth 1Y-59.86%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year10.39%
EBIT Next 3Y4.9%
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