SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOLV - US83444M1018 - Common Stock
82.79 USD
+0.89 (+1.09%)
82.79 USD
0 (0%)
Taking everything into account, SOLV scores 4 out of 10 in our fundamental rating. SOLV was compared to 187 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 has a correct valuation and a medium growth rate.
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
SOLV has a Return On Assets of 10.91%. This is amongst the best in the industry. SOLV outperforms 95.19% of its industry peers.
The Return On Equity of SOLV (30.57%) is better than 98.93% of its industry peers.
SOLV has a Return On Invested Capital of 5.13%. This is in the better half of the industry: SOLV outperforms 77.01% 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 8.81%.
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 93.58% of its industry peers.
In the last couple of years the Profit Margin of SOLV has declined.
SOLV's Operating Margin of 8.44% is fine compared to the rest of the industry. SOLV outperforms 75.94% of its industry peers.
SOLV's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 54.18%, SOLV perfoms like the industry average, outperforming 50.27% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SOLV is creating some value.
SOLV has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for SOLV is higher compared to a year ago.
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.
With a decent Altman-Z score value of 2.03, SOLV is doing good in the industry, outperforming 61.50% of the companies in the same industry.
The Debt to FCF ratio of SOLV is 102.74, which is on the high side as it means it would take SOLV, 102.74 years of fcf income to pay off all of its debts.
SOLV has a better Debt to FCF ratio (102.74) than 67.38% 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 75.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.63
WACC8.11%
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 75.40% of its industry peers.
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.
With a Quick ratio value of 1.14, SOLV is not doing good in the industry: 71.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.14 |
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.
SOLV shows a small growth in Revenue. In the last year, the Revenue has grown by 2.28%.
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
The Earnings Per Share is expected to grow by 4.39% 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 1.10% yearly.
EPS Next Y-8.16%
EPS Next 2Y-1.46%
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
Based on the Price/Earnings ratio of 13.94, the valuation of SOLV can be described as correct.
Based on the Price/Earnings ratio, SOLV is valued cheaply inside the industry as 88.77% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.76. SOLV is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.74, which indicates a correct valuation of SOLV.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
SOLV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
82.35% of the companies in the same industry are more expensive than SOLV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SOLV is valued a bit cheaper than the industry average as 67.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 287.2 | ||
| EV/EBITDA | 14.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.46%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.79
+0.89 (+1.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners72.33%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner Change-33.85%
Market Cap14.36B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts72.38
Price Target87.55 (5.75%)
Short Float %2.77%
Short Ratio3.87
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)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)0.61%
PT rev (3m)-1.08%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)3.86%
EPS NY rev (1m)1.3%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 12.74 | ||
| P/S | 1.71 | ||
| P/FCF | 287.2 | ||
| P/OCF | 29.13 | ||
| P/B | 2.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.5 |
EPS(TTM)5.94
EY7.17%
EPS(NY)6.5
Fwd EY7.85%
FCF(TTM)0.29
FCFY0.35%
OCF(TTM)2.84
OCFY3.43%
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
WACC8.11%
ROIC/WACC0.63
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-8.16%
EPS Next 2Y-1.46%
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 for 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.
Can you provide the expected EPS growth for SOLV stock?
The Earnings per Share (EPS) of SOLVENTUM CORP (SOLV) is expected to decline by -8.16% in the next year.