SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOLV - US83444M1018 - Common Stock
83.16 USD
+2.36 (+2.92%)
83.16 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SOLV. SOLV was compared to 185 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.
1. Profitability
1.1 Basic Checks
In the past year SOLV was profitable.
In the past year SOLV had a positive cash flow from operations.
1.2 Ratios
SOLV has a Return On Assets of 10.91%. This is amongst the best in the industry. SOLV outperforms 95.14% of its industry peers.
SOLV has a better Return On Equity (30.57%) than 98.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.13%, SOLV is in the better half of the industry, outperforming 76.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SOLV is in line with the industry average of 8.84%.
The last Return On Invested Capital (5.13%) for SOLV is well below the 3 year average (9.85%), which needs to be investigated, but indicates that SOLV had better years and this may not be a problem.
| 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
The Profit Margin of SOLV (18.14%) is better than 93.51% of its industry peers.
In the last couple of years the Profit Margin of SOLV has declined.
With a decent Operating Margin value of 8.44%, SOLV is doing good in the industry, outperforming 76.22% of the companies in the same industry.
In the last couple of years the Operating Margin of SOLV has declined.
SOLV has a Gross Margin of 54.18%. This is comparable to the rest of the industry: SOLV outperforms 50.81% 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
2. Health
2.1 Basic Checks
SOLV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SOLV remains at a similar level compared to 1 year ago.
SOLV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.03 indicates that SOLV is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOLV has a Altman-Z score of 2.03. This is comparable to the rest of the industry: SOLV outperforms 60.00% 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 67.03% of its industry peers.
SOLV has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
SOLV has a Debt to Equity ratio of 1.03. This is in the lower half of the industry: SOLV underperforms 75.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.52
WACC9.89%
2.3 Liquidity
SOLV has a Current Ratio of 1.50. This is a normal value and indicates that SOLV is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.50, SOLV is not doing good in the industry: 74.05% of the companies in the same industry are doing better.
SOLV has a Quick Ratio of 1.14. 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 Quick ratio (1.14) than 70.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.76% over the past 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.
The Revenue has been growing slightly by 2.28% in the past year.
Measured over the past years, SOLV shows a small growth in Revenue. The Revenue has been growing by 0.34% on average per year.
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
Based on estimates for the next years, SOLV will show a small growth in Earnings Per Share. The EPS will grow by 4.39% on average per year.
The Revenue is expected to grow by 1.10% on average over the next years.
EPS Next Y-8.17%
EPS Next 2Y-1.47%
EPS Next 3Y1.69%
EPS Next 5Y4.39%
Revenue Next Year0.5%
Revenue Next 2Y-1.54%
Revenue Next 3Y0.07%
Revenue Next 5Y1.1%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 14.00 indicates a correct valuation of SOLV.
90.81% of the companies in the same industry are more expensive than SOLV, based on the Price/Earnings ratio.
SOLV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.17.
SOLV is valuated correctly with a Price/Forward Earnings ratio of 12.80.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaply inside the industry as 91.89% of the companies are valued more expensively.
SOLV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
SOLV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SOLV is cheaper than 82.70% of the companies in the same industry.
67.57% 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 | 288.48 | ||
| EV/EBITDA | 14.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.47%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
83.16
+2.36 (+2.92%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners72.36%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner Change-33.85%
Market Cap14.42B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts72.38
Price Target88.84 (6.83%)
Short Float %2.4%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)8.87%
Min EPS beat(2)2.66%
Max EPS beat(2)15.09%
EPS beat(4)4
Avg EPS beat(4)7.48%
Min EPS beat(4)2.66%
Max EPS beat(4)15.09%
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)-0.05%
Max Revenue beat(2)0.19%
Revenue beat(4)2
Avg Revenue beat(4)0%
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)3.19%
PT rev (3m)0.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 12.8 | ||
| P/S | 1.72 | ||
| P/FCF | 288.48 | ||
| P/OCF | 29.26 | ||
| P/B | 2.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.56 |
EPS(TTM)5.94
EY7.14%
EPS(NY)6.49
Fwd EY7.81%
FCF(TTM)0.29
FCFY0.35%
OCF(TTM)2.84
OCFY3.42%
SpS48.44
BVpS28.75
TBVpS-14.4
PEG (NY)N/A
PEG (5Y)N/A
Graham Number61.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.91% | ||
| ROE | 30.57% | ||
| ROCE | 6.43% | ||
| ROIC | 5.13% | ||
| ROICexc | 6.03% | ||
| ROICexgc | 29.65% | ||
| OM | 8.44% | ||
| PM (TTM) | 18.14% | ||
| GM | 54.18% | ||
| FCFM | 0.6% |
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
ROICexgc growth 3Y-14.04%
ROICexgc 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-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Debt/EBITDA | 4.17 | ||
| Cap/Depr | 84.87% | ||
| Cap/Sales | 5.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.05% | ||
| Profit Quality | 3.28% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.03 |
F-Score6
WACC9.89%
ROIC/WACC0.52
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)108.76%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-8.54%
EPS Next Y-8.17%
EPS Next 2Y-1.47%
EPS Next 3Y1.69%
EPS Next 5Y4.39%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%0.67%
Revenue Next Year0.5%
Revenue Next 2Y-1.54%
Revenue Next 3Y0.07%
Revenue Next 5Y1.1%
EBIT growth 1Y-45.71%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year16.51%
EBIT Next 3Y6.48%
EBIT Next 5Y3.32%
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
SOLVENTUM CORP / SOLV FAQ
Can you provide the ChartMill fundamental rating for SOLVENTUM CORP?
ChartMill assigns a fundamental rating of 4 / 10 to SOLV.
What is the valuation status of SOLVENTUM CORP (SOLV) stock?
ChartMill assigns a valuation rating of 5 / 10 to SOLVENTUM CORP (SOLV). This can be considered as Fairly Valued.
Can you provide the profitability details for SOLVENTUM CORP?
SOLVENTUM CORP (SOLV) has a profitability rating of 5 / 10.
How financially healthy is SOLVENTUM CORP?
The financial health rating of SOLVENTUM CORP (SOLV) is 3 / 10.