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SOLVENTUM CORP (SOLV) Stock Fundamental Analysis

NYSE:SOLV - New York Stock Exchange, Inc. - US83444M1018 - Common Stock - Currency: USD

73.02  -1.48 (-1.99%)

After market: 73.02 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SOLV. SOLV was compared to 190 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 is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year SOLV was profitable.
SOLV had a positive operating cash flow in the past year.
SOLV Yearly Net Income VS EBIT VS OCF VS FCFSOLV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 500M 1B 1.5B 2B

1.2 Ratios

Looking at the Return On Assets, with a value of 4.88%, SOLV belongs to the top of the industry, outperforming 82.98% of the companies in the same industry.
With an excellent Return On Equity value of 22.56%, SOLV belongs to the best of the industry, outperforming 95.21% of the companies in the same industry.
SOLV has a better Return On Invested Capital (8.83%) than 88.30% of its industry peers.
SOLV had an Average Return On Invested Capital over the past 3 years of 11.33%. This is above the industry average of 8.19%.
Industry RankSector Rank
ROA 4.88%
ROE 22.56%
ROIC 8.83%
ROA(3y)9.97%
ROA(5y)N/A
ROE(3y)11.69%
ROE(5y)N/A
ROIC(3y)11.33%
ROIC(5y)N/A
SOLV Yearly ROA, ROE, ROICSOLV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 2 4 6 8 10

1.3 Margins

With an excellent Profit Margin value of 8.76%, SOLV belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
The Operating Margin of SOLV (15.90%) is better than 86.17% of its industry peers.
SOLV has a Gross Margin of 56.38%. This is comparable to the rest of the industry: SOLV outperforms 51.06% of its industry peers.
Industry RankSector Rank
OM 15.9%
PM (TTM) 8.76%
GM 56.38%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
SOLV Yearly Profit, Operating, Gross MarginsSOLV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 20 40 60

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3

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.
There is no outstanding debt for SOLV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
SOLV Yearly Shares OutstandingSOLV Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 50M 100M 150M
SOLV Yearly Total Debt VS Total AssetsSOLV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 5B 10B

2.2 Solvency

SOLV has an Altman-Z score of 1.56. This is a bad value and indicates that SOLV is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.56, SOLV perfoms like the industry average, outperforming 55.85% of the companies in the same industry.
SOLV has a debt to FCF ratio of 6.92. This is a slightly negative value and a sign of low solvency as SOLV would need 6.92 years to pay back of all of its debts.
SOLV has a Debt to FCF ratio of 6.92. This is in the better half of the industry: SOLV outperforms 74.47% of its industry peers.
SOLV has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
SOLV has a worse Debt to Equity ratio (2.45) than 86.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.45
Debt/FCF 6.92
Altman-Z 1.56
ROIC/WACC0.97
WACC9.06%
SOLV Yearly LT Debt VS Equity VS FCFSOLV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 2B 4B 6B 8B 10B

2.3 Liquidity

SOLV has a Current Ratio of 1.15. This is a normal value and indicates that SOLV is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SOLV (1.15) is worse than 87.77% of its industry peers.
A Quick Ratio of 0.83 indicates that SOLV may have some problems paying its short term obligations.
SOLV has a Quick ratio of 0.83. This is amonst the worse of the industry: SOLV underperforms 87.23% of its industry peers.
Industry RankSector Rank
Current Ratio 1.15
Quick Ratio 0.83
SOLV Yearly Current Assets VS Current LiabilitesSOLV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 500M 1B 1.5B 2B 2.5B

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1

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 0.22% over the past year.
Looking at the last year, SOLV shows a small growth in Revenue. The Revenue has grown by 0.82% in the last year.
EPS 1Y (TTM)0.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-73.7%
Revenue 1Y (TTM)0.82%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.39%

3.2 Future

SOLV is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.44% yearly.
Based on estimates for the next years, SOLV will show a small growth in Revenue. The Revenue will grow by 1.47% on average per year.
EPS Next Y-13.93%
EPS Next 2Y-15.23%
EPS Next 3Y-8.44%
EPS Next 5YN/A
Revenue Next Year2.44%
Revenue Next 2Y1.39%
Revenue Next 3Y1.47%
Revenue Next 5YN/A

3.3 Evolution

SOLV Yearly Revenue VS EstimatesSOLV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B
SOLV Yearly EPS VS EstimatesSOLV Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2 4 6

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.55 indicates a rather expensive valuation of SOLV.
86.70% of the companies in the same industry are more expensive than SOLV, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SOLV to the average of the S&P500 Index (29.63), we can say SOLV is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.02, which indicates a correct valuation of SOLV.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaply inside the industry as 92.55% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SOLV to the average of the S&P500 Index (22.68), we can say SOLV is valued slightly cheaper.
Industry RankSector Rank
PE 17.55
Fwd PE 13.02
SOLV Price Earnings VS Forward Price EarningsSOLV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 89.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SOLV is valued cheaply inside the industry as 95.74% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.76
EV/EBITDA 10.78
SOLV Per share dataSOLV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

4.3 Compensation for Growth

A cheap valuation may be justified as SOLV's earnings are expected to decrease with -8.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.23%
EPS Next 3Y-8.44%

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0

5. Dividend

5.1 Amount

No dividends for SOLV!.
Industry RankSector Rank
Dividend Yield N/A

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SOLVENTUM CORP

NYSE:SOLV (2/21/2025, 8:04:01 PM)

After market: 73.02 0 (0%)

73.02

-1.48 (-1.99%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-27 2025-02-27/amc
Inst Owners64.61%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner Change0.17%
Market Cap12.61B
Analysts55.29
Price Target75.24 (3.04%)
Short Float %3.22%
Short Ratio5.15
Dividend
Industry RankSector 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)8.49%
Min EPS beat(2)1.62%
Max EPS beat(2)15.36%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.43%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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%
PT rev (3m)1.47%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0%
EPS NY rev (3m)2.47%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
Industry RankSector Rank
PE 17.55
Fwd PE 13.02
P/S 1.54
P/FCF 10.76
P/OCF 8.34
P/B 3.95
P/tB N/A
EV/EBITDA 10.78
EPS(TTM)4.16
EY5.7%
EPS(NY)5.61
Fwd EY7.68%
FCF(TTM)6.78
FCFY9.29%
OCF(TTM)8.76
OCFY11.99%
SpS47.55
BVpS18.48
TBVpS-35.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.88%
ROE 22.56%
ROCE 11.03%
ROIC 8.83%
ROICexc 9.45%
ROICexgc 57.26%
OM 15.9%
PM (TTM) 8.76%
GM 56.38%
FCFM 14.27%
ROA(3y)9.97%
ROA(5y)N/A
ROE(3y)11.69%
ROE(5y)N/A
ROIC(3y)11.33%
ROIC(5y)N/A
ROICexc(3y)11.44%
ROICexc(5y)N/A
ROICexgc(3y)57.57%
ROICexgc(5y)N/A
ROCE(3y)14.16%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 2.45
Debt/FCF 6.92
Debt/EBITDA 4.22
Cap/Depr 62.68%
Cap/Sales 4.15%
Interest Coverage 250
Cash Conversion 81.78%
Profit Quality 162.78%
Current Ratio 1.15
Quick Ratio 0.83
Altman-Z 1.56
F-Score3
WACC9.06%
ROIC/WACC0.97
Cap/Depr(3y)47.17%
Cap/Depr(5y)N/A
Cap/Sales(3y)3.34%
Cap/Sales(5y)N/A
Profit Quality(3y)119.64%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-73.7%
EPS Next Y-13.93%
EPS Next 2Y-15.23%
EPS Next 3Y-8.44%
EPS Next 5YN/A
Revenue 1Y (TTM)0.82%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.39%
Revenue Next Year2.44%
Revenue Next 2Y1.39%
Revenue Next 3Y1.47%
Revenue Next 5YN/A
EBIT growth 1Y-0.06%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year27.48%
EBIT Next 3Y7.48%
EBIT Next 5YN/A
FCF growth 1Y13.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.06%
OCF growth 3YN/A
OCF growth 5YN/A