SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOLV - US83444M1018 - Common Stock
85.26 USD
-0.01 (-0.01%)
82.6107 USD
-2.65 (-3.11%)
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. There are concerns on the financial health of SOLV while its profitability can be described as average. SOLV is not valued too expensively and it also shows a decent 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's Return On Assets of 10.91% is amongst the best of the industry. SOLV outperforms 94.68% of its industry peers.
With an excellent Return On Equity value of 30.57%, SOLV belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.13%, SOLV is doing good in the industry, outperforming 77.13% of the companies in the same industry.
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 8.72%.
The last Return On Invested Capital (5.13%) 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 | 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.
In the last couple of years the Operating Margin of SOLV has declined.
SOLV has a Gross Margin (54.18%) which is in line with its industry peers.
In the last couple of years the Gross Margin of SOLV has declined.
| 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
SOLV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SOLV has about the same amount of shares outstanding.
The debt/assets ratio for SOLV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.06 indicates that SOLV is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOLV has a better Altman-Z score (2.06) than 62.23% of its industry peers.
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.
With a decent Debt to FCF ratio value of 102.74, SOLV is doing good in the industry, outperforming 66.49% of the companies in the same industry.
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 75.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.64
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.50 indicates that SOLV should not have too much problems paying its short term obligations.
With a Current ratio value of 1.50, SOLV is not doing good in the industry: 75.53% 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.
Looking at the Quick ratio, with a value of 1.14, SOLV is doing worse than 71.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.76% over the past year.
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 2.28% in the past 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)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 4.39% yearly.
Based on estimates for the next years, SOLV will show a small growth in Revenue. The Revenue will grow by 1.10% on average per year.
EPS Next Y-9.34%
EPS Next 2Y-2.13%
EPS Next 3Y1.95%
EPS Next 5Y4.39%
Revenue Next Year0.44%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.25%
Revenue Next 5Y1.1%
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
Based on the Price/Earnings ratio of 14.35, the valuation of SOLV can be described as correct.
Based on the Price/Earnings ratio, SOLV is valued cheaper than 88.30% of the companies in the same industry.
SOLV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
SOLV is valuated correctly with a Price/Forward Earnings ratio of 13.30.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaply inside the industry as 88.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.56, SOLV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 13.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLV is valued cheaper than 83.51% of the companies in the same industry.
SOLV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOLV is cheaper than 67.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 295.77 | ||
| EV/EBITDA | 14.85 |
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
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
85.26
-0.01 (-0.01%)
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 Cap14.79B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts72.38
Price Target86.1 (0.99%)
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)-2.24%
PT rev (3m)-2.71%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)3.86%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 13.3 | ||
| P/S | 1.76 | ||
| P/FCF | 295.77 | ||
| P/OCF | 30 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.85 |
EPS(TTM)5.94
EY6.97%
EPS(NY)6.41
Fwd EY7.52%
FCF(TTM)0.29
FCFY0.34%
OCF(TTM)2.84
OCFY3.33%
SpS48.44
BVpS28.75
TBVpS-14.4
PEG (NY)N/A
PEG (5Y)N/A
Graham Number61.98
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 | 2.06 |
F-Score6
WACC8.04%
ROIC/WACC0.64
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 5Y4.39%
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 5Y1.1%
EBIT growth 1Y-45.71%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year15.04%
EBIT Next 3Y6.93%
EBIT Next 5Y3.32%
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.