SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - NYSE:SOLV - US83444M1018 - Common Stock
71.44 USD
-0.12 (-0.17%)
71.44 USD
0 (0%)
Overall SOLV gets a fundamental rating of 3 out of 10. We evaluated SOLV against 191 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 it does not seem to be growing.
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 2.52%, SOLV is doing good in the industry, outperforming 75.92% of the companies in the same industry.
SOLV has a better Return On Equity (10.43%) than 85.86% of its industry peers.
The Return On Invested Capital of SOLV (5.20%) is better than 77.49% 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 8.89%.
The 3 year average ROIC (9.85%) for SOLV is well above the current ROIC(5.20%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 10.43% | ||
| ROIC | 5.2% |
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 (4.53%) is better than 75.39% of its industry peers.
In the last couple of years the Profit Margin of SOLV has declined.
With a decent Operating Margin value of 9.66%, SOLV is doing good in the industry, outperforming 78.01% of the companies in the same industry.
SOLV's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 54.65%, SOLV perfoms like the industry average, outperforming 50.26% of the companies in the same industry.
SOLV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.66% | ||
| PM (TTM) | 4.53% | ||
| GM | 54.65% |
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
SOLV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
Based on the Altman-Z score of 1.47, we must say that SOLV is in the distress zone and has some risk of bankruptcy.
SOLV has a Altman-Z score of 1.47. This is comparable to the rest of the industry: SOLV outperforms 56.02% of its industry peers.
The Debt to FCF ratio of SOLV is 53.90, which is on the high side as it means it would take SOLV, 53.90 years of fcf income to pay off all of its debts.
SOLV has a better Debt to FCF ratio (53.90) than 67.02% of its industry peers.
A Debt/Equity ratio of 2.14 is on the high side and indicates that SOLV has dependencies on debt financing.
With a Debt to Equity ratio value of 2.14, SOLV is not doing good in the industry: 84.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 53.9 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.65
WACC7.97%
2.3 Liquidity
SOLV has a Current Ratio of 1.22. This is a normal value and indicates that SOLV is financially healthy and should not expect problems in meeting its short term obligations.
SOLV's Current ratio of 1.22 is on the low side compared to the rest of the industry. SOLV is outperformed by 81.68% of its industry peers.
SOLV has a Quick Ratio of 1.22. This is a bad value and indicates that SOLV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.86, SOLV is doing worse than 82.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
SOLV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.49%.
SOLV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.19% yearly.
The Revenue has been growing slightly by 2.21% 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)-64.49%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%8.33%
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%3.84%
3.2 Future
SOLV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.26% yearly.
Based on estimates for the next years, SOLV will show a small growth in Revenue. The Revenue will grow by 0.21% on average per year.
EPS Next Y-9.76%
EPS Next 2Y-2.73%
EPS Next 3Y2.26%
EPS Next 5YN/A
Revenue Next Year0.2%
Revenue Next 2Y-1.51%
Revenue Next 3Y0.21%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.75, which indicates a very decent valuation of SOLV.
Based on the Price/Earnings ratio, SOLV is valued cheaply inside the industry as 90.58% of the companies are valued more expensively.
SOLV is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.29, the valuation of SOLV can be described as reasonable.
SOLV's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOLV is cheaper than 92.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SOLV to the average of the S&P500 Index (22.85), we can say SOLV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
80.10% 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 71.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.43 | ||
| EV/EBITDA | 14.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.73%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.44
-0.12 (-0.17%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners66.69%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner Change-33.64%
Market Cap12.39B
Analysts73
Price Target88.07 (23.28%)
Short Float %2.73%
Short Ratio3.7
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)11.33%
Min EPS beat(2)7.57%
Max EPS beat(2)15.09%
EPS beat(4)4
Avg EPS beat(4)10.65%
Min EPS beat(4)4.59%
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)0.32%
Min Revenue beat(2)-0.05%
Max Revenue beat(2)0.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.22%
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)-0.48%
PT rev (3m)5.09%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)3.12%
EPS NY rev (1m)0.59%
EPS NY rev (3m)6.13%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-0.91%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 11.29 | ||
| P/S | 1.48 | ||
| P/FCF | 85.43 | ||
| P/OCF | 21.21 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.67 |
EPS(TTM)6.08
EY8.51%
EPS(NY)6.33
Fwd EY8.86%
FCF(TTM)0.84
FCFY1.17%
OCF(TTM)3.37
OCFY4.71%
SpS48.38
BVpS21.02
TBVpS-22.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 10.43% | ||
| ROCE | 6.5% | ||
| ROIC | 5.2% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 14.75% | ||
| OM | 9.66% | ||
| PM (TTM) | 4.53% | ||
| GM | 54.65% | ||
| FCFM | 1.73% |
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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 53.9 | ||
| Debt/EBITDA | 5.81 | ||
| Cap/Depr | 82.21% | ||
| Cap/Sales | 5.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.45% | ||
| Profit Quality | 38.16% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.47 |
F-Score4
WACC7.97%
ROIC/WACC0.65
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)-64.49%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%8.33%
EPS Next Y-9.76%
EPS Next 2Y-2.73%
EPS Next 3Y2.26%
EPS Next 5YN/A
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%3.84%
Revenue Next Year0.2%
Revenue Next 2Y-1.51%
Revenue Next 3Y0.21%
Revenue Next 5YN/A
EBIT growth 1Y-47.23%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year15.04%
EBIT Next 3Y6.93%
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