SOLV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 184 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 decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

SOLV had positive earnings in the past year.
SOLV had a positive operating cash flow in the past year.

1.2 Ratios

Looking at the Return On Assets, with a value of 10.91%, SOLV belongs to the top of the industry, outperforming 95.11% of the companies in the same industry.
The Return On Equity of SOLV (30.57%) is better than 98.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.13%, SOLV is in the better half of the industry, outperforming 76.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SOLV is in line with the industry average of 8.81%.
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's Profit Margin of 18.14% is amongst the best of the industry. SOLV outperforms 94.02% of its industry peers.
In the last couple of years the Profit Margin of SOLV has declined.
With a decent Operating Margin value of 8.44%, SOLV is doing good in the industry, outperforming 76.09% 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 comparable to the rest of the industry.
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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SOLV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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

An Altman-Z score of 1.95 indicates that SOLV is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOLV's Altman-Z score of 1.95 is in line compared to the rest of the industry. SOLV outperforms 59.24% 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.
SOLV's Debt to FCF ratio of 102.74 is fine compared to the rest of the industry. SOLV outperforms 66.30% of its industry peers.
SOLV has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOLV (1.03) is worse than 75.54% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.03
Debt/FCF	102.74
Altman-Z	1.95

ROIC/WACC0.51

WACC10.14%

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: 73.91% of the companies in the same industry are doing better.
A Quick Ratio of 1.14 indicates that SOLV should not have too much problems paying its short term obligations.
SOLV's Quick ratio of 1.14 is on the low side compared to the rest of the industry. SOLV is outperformed by 69.57% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.5
Quick Ratio	1.14

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WACC

Debt/Equity

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Altman-Z score

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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.
The earnings per share for SOLV have been decreasing by -31.19% on average. This is quite bad
SOLV shows a small growth in Revenue. In the last year, the Revenue has grown by 2.28%.
The Revenue has been growing slightly by 0.34% on average over the past years.

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

The Earnings Per Share is expected to grow by 4.39% on average over the next years.
SOLV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.73% yearly.

EPS Next Y-8.14%

EPS Next 2Y-1.56%

EPS Next 3Y1.68%

EPS Next 5Y4.39%

Revenue Next Year0.54%

Revenue Next 2Y-1.38%

Revenue Next 3Y0.15%

Revenue Next 5Y0.73%

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 accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.96, the valuation of SOLV can be described as correct.
Based on the Price/Earnings ratio, SOLV is valued cheaper than 91.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of SOLV to the average of the S&P500 Index (28.30), we can say SOLV is valued rather cheaply.
A Price/Forward Earnings ratio of 11.87 indicates a reasonable valuation of SOLV.
92.93% of the companies in the same industry are more expensive than SOLV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, SOLV is valued rather cheaply.

		Industry Rank	Sector Rank
PE	12.96
Fwd PE	11.87

4.2 Price Multiples

83.70% of the companies in the same industry are more expensive than SOLV, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOLV indicates a somewhat cheap valuation: SOLV is cheaper than 66.85% of the companies listed in the same industry.