SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - NYSE:SOLV - US83444M1018 - Common Stock
79.51 USD
+2.2 (+2.85%)
79.51 USD
0 (0%)
Taking everything into account, SOLV scores 4 out of 10 in our fundamental rating. SOLV was compared to 188 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
In the past year SOLV was profitable.
SOLV had a positive operating cash flow in the past year.
1.2 Ratios
SOLV's Return On Assets of 10.91% is amongst the best of the industry. SOLV outperforms 94.68% of its industry peers.
Looking at the Return On Equity, with a value of 30.57%, SOLV belongs to the top of the industry, outperforming 98.40% of the companies in the same industry.
SOLV has a better Return On Invested Capital (5.13%) than 77.66% 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 8.98%.
The 3 year average ROIC (9.85%) for SOLV is well above the current ROIC(5.13%). The reason for the recent decline needs to be investigated.
| 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
SOLV has a Profit Margin of 18.14%. This is amongst the best in the industry. SOLV outperforms 93.09% 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 8.44%, SOLV is in the better half of the industry, outperforming 75.53% of the companies in the same industry.
SOLV's Operating Margin has declined in the last couple of years.
SOLV has a Gross Margin (54.18%) which is in line with 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SOLV is still creating some value.
Compared to 1 year ago, SOLV has about the same amount of shares outstanding.
Compared to 1 year ago, SOLV has a worse debt to assets ratio.
2.2 Solvency
SOLV has an Altman-Z score of 1.99. This is not the best score and indicates that SOLV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.99, SOLV is in the better half of the industry, outperforming 61.70% of the companies in the same industry.
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 65.96% 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.
The Debt to Equity ratio of SOLV (1.03) is worse than 77.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.63
WACC8.09%
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: 77.13% 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.
The Quick ratio of SOLV (1.14) is worse than 71.81% of its industry peers.
| 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%.
SOLV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.34% yearly.
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
SOLV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.37% yearly.
Based on estimates for the next years, SOLV will show a small growth in Revenue. The Revenue will grow by 0.78% on average per year.
EPS Next Y-9.34%
EPS Next 2Y-2.13%
EPS Next 3Y1.95%
EPS Next 5Y4.37%
Revenue Next Year0.44%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.25%
Revenue Next 5Y0.78%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SOLV is valuated correctly with a Price/Earnings ratio of 13.39.
Based on the Price/Earnings ratio, SOLV is valued cheaply inside the industry as 87.23% of the companies are valued more expensively.
SOLV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.07.
Based on the Price/Forward Earnings ratio of 12.41, the valuation of SOLV can be described as correct.
89.36% of the companies in the same industry are more expensive than SOLV, based on the Price/Forward Earnings ratio.
SOLV is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
SOLV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SOLV is cheaper than 82.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SOLV is valued a bit cheaper than 65.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 275.73 | ||
| EV/EBITDA | 14.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.13%
EPS Next 3Y1.95%
5. Dividend
5.1 Amount
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.51
+2.2 (+2.85%)
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-33.97%
Market Cap13.79B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts72.38
Price Target87.02 (9.45%)
Short Float %3.35%
Short Ratio4.63
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)-1.2%
PT rev (3m)0.32%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)3.75%
EPS NY rev (1m)0.47%
EPS NY rev (3m)6.62%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-8.43%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.41 | ||
| P/S | 1.64 | ||
| P/FCF | 275.73 | ||
| P/OCF | 27.96 | ||
| P/B | 2.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.04 |
EPS(TTM)5.94
EY7.47%
EPS(NY)6.41
Fwd EY8.06%
FCF(TTM)0.29
FCFY0.36%
OCF(TTM)2.84
OCFY3.58%
SpS48.46
BVpS28.76
TBVpS-14.4
PEG (NY)N/A
PEG (5Y)N/A
Graham Number61.99
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 | 1.99 |
F-Score6
WACC8.09%
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-9.34%
EPS Next 2Y-2.13%
EPS Next 3Y1.95%
EPS Next 5Y4.37%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%0.67%
Revenue Next Year0.44%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.25%
Revenue Next 5Y0.78%
EBIT growth 1Y-45.71%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year15.04%
EBIT Next 3Y6.93%
EBIT Next 5Y3.96%
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 -9.34% in the next year.