SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
NYSE:SOLV - New York Stock Exchange, Inc. - US83444M1018 - Common Stock - Currency: USD
Taking everything into account, SOLV scores 3 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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
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 Return On Equity of 11.62%. This is amongst the best in the industry. SOLV outperforms 87.17% of its industry peers.
SOLV's Return On Invested Capital of 5.56% is fine compared to the rest of the industry. SOLV outperforms 79.68% of its industry peers.
SOLV had an Average Return On Invested Capital over the past 3 years of 9.85%. This is in line with the industry average of 7.91%.
The last Return On Invested Capital (5.56%) 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 | 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
SOLV's Profit Margin of 4.56% is fine compared to the rest of the industry. SOLV outperforms 77.01% of its industry peers.
In the last couple of years the Profit Margin of SOLV has declined.
Looking at the Operating Margin, with a value of 10.01%, SOLV is in the better half of the industry, outperforming 77.01% 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 (54.71%) which is comparable to the rest of the industry.
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.
SOLV has a worse debt/assets ratio than last year.
2.2 Solvency
SOLV has an Altman-Z score of 1.51. 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 (1.51) which is comparable to the rest of the industry.
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.
SOLV's Debt to FCF ratio of 20.82 is fine compared to the rest of the industry. SOLV outperforms 71.66% of its industry peers.
SOLV has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOLV (2.40) is worse than 87.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 20.82 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.68
WACC8.23%
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.
Looking at the Quick ratio, with a value of 0.85, SOLV is doing worse than 84.49% of the companies in the same industry.
| 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.
The earnings per share for SOLV have been decreasing by -31.19% on average. This is quite bad
Looking at the last year, SOLV shows a very negative growth in Revenue. The Revenue has decreased by -18.65% in the last year.
SOLV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.34% yearly.
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
The Earnings Per Share is expected to grow by 1.09% on average over the next years.
The Revenue is expected to grow by 1.86% on average over the next years.
EPS Next Y-14.97%
EPS Next 2Y-4.91%
EPS Next 3Y1.09%
EPS Next 5YN/A
Revenue Next Year2.33%
Revenue Next 2Y1.23%
Revenue Next 3Y1.86%
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.
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
With a Price/Earnings ratio of 12.48, SOLV is valued correctly.
Based on the Price/Earnings ratio, SOLV is valued cheaper than 90.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.53, SOLV is valued rather cheaply.
The Price/Forward Earnings ratio is 12.28, which indicates a correct valuation of SOLV.
88.77% of the companies in the same industry are more expensive than SOLV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.71. SOLV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 12.28 |
4.2 Price Multiples
SOLV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SOLV is cheaper than 79.14% of the companies in the same industry.
79.14% 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 | 33.81 | ||
| EV/EBITDA | 14.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.91%
EPS Next 3Y1.09%
5. Dividend
5.1 Amount
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:SOLV (7/23/2025, 2:02:18 PM)
74.27
+1.35 (+1.85%)
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 Cap12.85B
Analysts70.53
Price Target86.74 (16.79%)
Short Float %3.18%
Short Ratio4.28
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)3.5%
PT rev (3m)5.13%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)3.84%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 12.28 | ||
| P/S | 1.55 | ||
| P/FCF | 33.81 | ||
| P/OCF | 16.75 | ||
| P/B | 3.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.52 |
EPS(TTM)5.95
EY8.01%
EPS(NY)6.05
Fwd EY8.14%
FCF(TTM)2.2
FCFY2.96%
OCF(TTM)4.43
OCFY5.97%
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 | 1.51 |
F-Score4
WACC8.23%
ROIC/WACC0.68
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-14.97%
EPS Next 2Y-4.91%
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 3Y1.86%
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