SOLV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 186 industry peers in the Health Care Equipment & Supplies industry. SOLV has a medium profitability rating, but doesn't score so well on its financial health evaluation. SOLV has a decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SOLV was profitable.
SOLV had a positive operating cash flow in the past year.

1.2 Ratios

The Return On Assets of SOLV (10.91%) is better than 95.16% of its industry peers.
SOLV has a better Return On Equity (30.57%) than 98.92% of its industry peers.
SOLV's Return On Invested Capital of 5.13% is fine compared to the rest of the industry. SOLV outperforms 77.42% 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 8.81%.
The 3 year average ROIC (9.85%) for SOLV is well above the current ROIC(5.13%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	10.91%
ROE	30.57%
ROIC	5.13%

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's Profit Margin of 18.14% is amongst the best of the industry. SOLV outperforms 94.09% of its industry peers.
SOLV's Profit Margin has declined in the last couple of years.
SOLV has a better Operating Margin (8.44%) than 76.34% of its industry peers.
In the last couple of years the Operating Margin of SOLV has declined.
SOLV's Gross Margin of 54.18% is in line compared to the rest of the industry. SOLV outperforms 51.08% of its industry peers.
SOLV's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	8.44%
PM (TTM)	18.14%
GM	54.18%

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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOLV is destroying value.
The number of shares outstanding for SOLV remains at a similar level compared to 1 year ago.
The debt/assets ratio for SOLV is higher compared to a year ago.

2.2 Solvency

SOLV has an Altman-Z score of 1.96. This is not the best score and indicates that SOLV is in the grey zone with still only limited risk for bankruptcy at the moment.
SOLV's Altman-Z score of 1.96 is in line compared to the rest of the industry. SOLV outperforms 59.14% of its industry peers.
SOLV has a debt to FCF ratio of 102.74. This is a negative value and a sign of low solvency as SOLV would need 102.74 years to pay back of all of its debts.
SOLV has a better Debt to FCF ratio (102.74) than 66.67% of its industry peers.
A Debt/Equity ratio of 1.03 is on the high side and indicates that SOLV has dependencies on debt financing.
SOLV has a Debt to Equity ratio of 1.03. This is in the lower half of the industry: SOLV underperforms 75.27% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.03
Debt/FCF	102.74
Altman-Z	1.96

ROIC/WACC0.5

WACC10.19%

2.3 Liquidity

A Current Ratio of 1.50 indicates that SOLV should not have too much problems paying its short term obligations.
SOLV has a worse Current ratio (1.50) than 73.66% of its industry peers.
A Quick Ratio of 1.14 indicates that SOLV should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, SOLV is not doing good in the industry: 69.35% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.5
Quick Ratio	1.14

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

SOLV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 108.76%, which is quite impressive.
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.
The Revenue has been growing slightly by 2.28% in the past year.
The Revenue has been growing slightly by 0.34% on average over the past years.

EPS 1Y (TTM)108.76%

EPS 3Y-31.19%

EPS 5YN/A

EPS Q2Q%-8.54%

Revenue 1Y (TTM)2.28%

Revenue growth 3Y0.34%

Revenue growth 5YN/A

Sales Q2Q%0.67%

3.2 Future

SOLV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.39% yearly.
Based on estimates for the next years, SOLV will show a small growth in Revenue. The Revenue will grow by 0.73% on average per year.

EPS Next Y-8.14%

EPS Next 2Y-1.56%

EPS Next 3Y1.68%

EPS Next 5Y4.39%

Revenue Next Year0.54%

Revenue Next 2Y-1.38%

Revenue Next 3Y0.15%

Revenue Next 5Y0.73%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.95, the valuation of SOLV can be described as correct.
91.94% of the companies in the same industry are more expensive than SOLV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.32. SOLV is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.86, the valuation of SOLV can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 93.01% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SOLV to the average of the S&P500 Index (25.57), we can say SOLV is valued rather cheaply.

		Industry Rank	Sector Rank
PE	12.95
Fwd PE	11.86

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SOLV is valued cheaper than 83.87% of the companies 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 67.20% of the companies listed in the same industry.