SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - NYSE:SOLV - US83444M1018 - Common Stock
73.39 USD
-0.4 (-0.54%)
73.39 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. 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.
In the past year SOLV had a positive cash flow from operations.
1.2 Ratios
SOLV has a better Return On Assets (2.52%) than 76.44% of its industry peers.
With an excellent Return On Equity value of 10.43%, SOLV belongs to the best of the industry, outperforming 85.34% of the companies in the same industry.
SOLV's Return On Invested Capital of 5.20% is fine compared to the rest of the industry. SOLV outperforms 78.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOLV is in line with the industry average of 8.46%.
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
SOLV has a Profit Margin of 4.53%. This is in the better half of the industry: SOLV outperforms 75.39% of its industry peers.
SOLV's Profit Margin has declined in the last couple of years.
The Operating Margin of SOLV (9.66%) is better than 77.49% of its industry peers.
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 49.74% 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 | 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.
Compared to 1 year ago, SOLV has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that SOLV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SOLV (1.49) is comparable to the rest of the industry.
SOLV has a debt to FCF ratio of 53.90. This is a negative value and a sign of low solvency as SOLV would need 53.90 years to pay back of all of its debts.
The Debt to FCF ratio of SOLV (53.90) is better than 66.49% 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: 84.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 53.9 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.65
WACC7.99%
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 has a worse Current ratio (1.22) than 81.15% of its industry peers.
A Quick Ratio of 0.86 indicates that SOLV may have some problems paying its short term obligations.
The Quick ratio of SOLV (0.86) is worse than 83.77% of its industry peers.
| 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.
Looking at the last year, SOLV shows a small growth in Revenue. The Revenue has grown by 2.21% in the last 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 1.36% yearly.
Based on estimates for the next years, SOLV will show a small growth in Revenue. The Revenue will grow by 0.83% on average per year.
EPS Next Y-10.29%
EPS Next 2Y-4.03%
EPS Next 3Y1.36%
EPS Next 5YN/A
Revenue Next Year1.12%
Revenue Next 2Y-0.31%
Revenue Next 3Y0.83%
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.
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
A Price/Earnings ratio of 12.07 indicates a correct valuation of SOLV.
Based on the Price/Earnings ratio, SOLV is valued cheaper than 90.58% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, SOLV is valued rather cheaply.
A Price/Forward Earnings ratio of 11.91 indicates a reasonable valuation of SOLV.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaply inside the industry as 91.62% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SOLV to the average of the S&P500 Index (22.73), we can say SOLV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
SOLV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SOLV is cheaper than 79.58% of the companies in the same industry.
70.68% 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 | 87.76 | ||
| EV/EBITDA | 14.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.03%
EPS Next 3Y1.36%
5. Dividend
5.1 Amount
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.39
-0.4 (-0.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.73%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner Change-33.64%
Market Cap12.73B
Analysts73.68
Price Target88.07 (20%)
Short Float %2.61%
Short Ratio4.03
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)1.54%
PT rev (3m)5.09%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)3.01%
EPS NY rev (1m)5.5%
EPS NY rev (3m)5.92%
Revenue NQ rev (1m)-2.58%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 11.91 | ||
| P/S | 1.52 | ||
| P/FCF | 87.76 | ||
| P/OCF | 21.79 | ||
| P/B | 3.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.92 |
EPS(TTM)6.08
EY8.28%
EPS(NY)6.16
Fwd EY8.4%
FCF(TTM)0.84
FCFY1.14%
OCF(TTM)3.37
OCFY4.59%
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 | 1.49 |
F-Score4
WACC7.99%
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-10.29%
EPS Next 2Y-4.03%
EPS Next 3Y1.36%
EPS Next 5YN/A
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%3.84%
Revenue Next Year1.12%
Revenue Next 2Y-0.31%
Revenue Next 3Y0.83%
Revenue Next 5YN/A
EBIT growth 1Y-47.23%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year11.7%
EBIT Next 3Y5.54%
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