SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
NYSE:SOLV - New York Stock Exchange, Inc. - US83444M1018 - Common Stock - Currency: USD
SOLV gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 189 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SOLV had positive earnings in the past year.
In the past year SOLV had a positive cash flow from operations.
1.2 Ratios
SOLV has a Return On Assets of 3.31%. This is in the better half of the industry: SOLV outperforms 78.31% of its industry peers.
The Return On Equity of SOLV (16.19%) is better than 92.06% of its industry peers.
SOLV has a Return On Invested Capital of 7.09%. This is amongst the best in the industry. SOLV outperforms 83.07% 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 7.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 16.19% | ||
| ROIC | 7.09% |
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 5.80% is fine compared to the rest of the industry. SOLV outperforms 77.78% of its industry peers.
SOLV's Profit Margin has declined in the last couple of years.
SOLV has a Operating Margin of 12.64%. This is in the better half of the industry: SOLV outperforms 79.89% of its industry peers.
In the last couple of years the Operating Margin of SOLV has declined.
Looking at the Gross Margin, with a value of 55.65%, SOLV is in line with its industry, outperforming 50.79% of the companies in the same industry.
In the last couple of years the Gross Margin of SOLV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.64% | ||
| PM (TTM) | 5.8% | ||
| GM | 55.65% |
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.
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 1.55. This is a bad value and indicates that SOLV is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SOLV (1.55) is comparable to the rest of the industry.
The Debt to FCF ratio of SOLV is 9.95, which is on the high side as it means it would take SOLV, 9.95 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.95, SOLV is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
SOLV has a Debt/Equity ratio of 2.64. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOLV (2.64) is worse than 84.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 9.95 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.85
WACC8.3%
2.3 Liquidity
SOLV has a Current Ratio of 1.20. 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 worse Current ratio (1.20) than 83.60% of its industry peers.
SOLV has a Quick Ratio of 1.20. 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 has a Quick ratio of 0.84. This is amonst the worse of the industry: SOLV underperforms 83.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
SOLV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.67%.
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 0.70%.
The Revenue has been growing slightly by 0.34% on average over the past years.
EPS 1Y (TTM)-64.67%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-35.58%
Revenue 1Y (TTM)0.7%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%2.68%
3.2 Future
The Earnings Per Share is expected to grow by 0.99% on average over the next years.
SOLV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.62% yearly.
EPS Next Y-15.3%
EPS Next 2Y-4.98%
EPS Next 3Y0.99%
EPS Next 5YN/A
Revenue Next Year2.16%
Revenue Next 2Y1.13%
Revenue Next 3Y1.62%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.22, which indicates a correct valuation of SOLV.
Compared to the rest of the industry, the Price/Earnings ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 91.01% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, SOLV is valued rather cheaply.
The Price/Forward Earnings ratio is 12.04, which indicates a correct valuation of SOLV.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaper than 87.83% of the companies in the same industry.
SOLV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 12.04 |
4.2 Price Multiples
SOLV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SOLV is cheaper than 84.66% of the companies in the same industry.
SOLV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SOLV is cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 12.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.98%
EPS Next 3Y0.99%
5. Dividend
5.1 Amount
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:SOLV (5/21/2025, 3:13:50 PM)
72.7
-2 (-2.68%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners64.61%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner Change0.29%
Market Cap12.58B
Analysts55.29
Price Target82 (12.79%)
Short Float %2.98%
Short Ratio3.34
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)9.98%
Min EPS beat(2)4.59%
Max EPS beat(2)15.36%
EPS beat(4)4
Avg EPS beat(4)9.61%
Min EPS beat(4)1.62%
Max EPS beat(4)16.86%
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)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.43%
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)-0.62%
PT rev (3m)8.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)0.23%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 12.04 | ||
| P/S | 1.52 | ||
| P/FCF | 15.62 | ||
| P/OCF | 10.61 | ||
| P/B | 4.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.62 |
EPS(TTM)5.95
EY8.18%
EPS(NY)6.04
Fwd EY8.31%
FCF(TTM)4.65
FCFY6.4%
OCF(TTM)6.85
OCFY9.42%
SpS47.71
BVpS17.1
TBVpS-34.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 16.19% | ||
| ROCE | 8.87% | ||
| ROIC | 7.09% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 40.23% | ||
| OM | 12.64% | ||
| PM (TTM) | 5.8% | ||
| GM | 55.65% | ||
| FCFM | 9.75% |
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-Score3
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 9.95 | ||
| Debt/EBITDA | 4.89 | ||
| Cap/Depr | 68.47% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 3.63 | ||
| Cash Conversion | 74.16% | ||
| Profit Quality | 168.06% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.55 |
F-Score3
WACC8.3%
ROIC/WACC0.85
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)-64.67%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-35.58%
EPS Next Y-15.3%
EPS Next 2Y-4.98%
EPS Next 3Y0.99%
EPS Next 5YN/A
Revenue 1Y (TTM)0.7%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%2.68%
Revenue Next Year2.16%
Revenue Next 2Y1.13%
Revenue Next 3Y1.62%
Revenue Next 5YN/A
EBIT growth 1Y-35.11%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year14%
EBIT Next 3Y5.28%
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