SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
NYSE:SOLV - New York Stock Exchange, Inc. - US83444M1018 - Common Stock - Currency: USD
Overall SOLV gets a fundamental rating of 3 out of 10. We evaluated SOLV against 187 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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 has a Return On Assets of 2.61%. This is in the better half of the industry: SOLV outperforms 76.47% of its industry peers.
SOLV has a better Return On Equity (11.62%) than 87.17% of its industry peers.
The Return On Invested Capital of SOLV (5.56%) is better than 79.68% of its industry peers.
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 7.89%.
The last Return On Invested Capital (5.56%) 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 | 2.61% | ||
| ROE | 11.62% | ||
| ROIC | 5.56% |
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 4.56%. This is in the better half of the industry: SOLV outperforms 77.01% of its industry peers.
SOLV's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.01%, SOLV is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
SOLV's Operating Margin has declined in the last couple of years.
SOLV has a Gross Margin (54.71%) 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 | 10.01% | ||
| PM (TTM) | 4.56% | ||
| GM | 54.71% |
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.
SOLV has about the same amout of shares outstanding than it did 1 year ago.
SOLV has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that SOLV is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.52, SOLV perfoms like the industry average, outperforming 55.62% of the companies in the same industry.
SOLV has a debt to FCF ratio of 20.82. This is a negative value and a sign of low solvency as SOLV would need 20.82 years to pay back of all of its debts.
SOLV has a better Debt to FCF ratio (20.82) than 71.66% of its industry peers.
SOLV has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOLV (2.40) is worse than 87.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 20.82 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.67
WACC8.3%
2.3 Liquidity
SOLV has a Current Ratio of 1.19. 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 (1.19) is worse than 83.96% of its industry peers.
A Quick Ratio of 0.85 indicates that SOLV may have some problems paying its short term obligations.
SOLV's Quick ratio of 0.85 is on the low side compared to the rest of the industry. SOLV is outperformed by 84.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for SOLV have decreased strongly by -76.29% in the last year.
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.
The Revenue for SOLV has decreased by -18.65% in the past year. This is quite bad
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)-76.29%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-35.58%
Revenue 1Y (TTM)-18.65%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%2.68%
3.2 Future
Based on estimates for the next years, SOLV will show a small growth in Earnings Per Share. The EPS will grow by 1.09% on average per year.
Based on estimates for the next years, SOLV will show a small growth in Revenue. The Revenue will grow by 1.86% on average per year.
EPS Next Y-14.97%
EPS Next 2Y-4.91%
EPS Next 3Y1.09%
EPS Next 5YN/A
Revenue Next Year2.33%
Revenue Next 2Y1.23%
Revenue Next 3Y1.86%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.32, the valuation of SOLV can be described as correct.
Based on the Price/Earnings ratio, SOLV is valued cheaply inside the industry as 89.30% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.50. SOLV is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.12, the valuation of SOLV can be described as correct.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaper than 88.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. SOLV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOLV indicates a somewhat cheap valuation: SOLV is cheaper than 78.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SOLV is valued cheaply inside the industry as 80.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.36 | ||
| EV/EBITDA | 14.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.91%
EPS Next 3Y1.09%
5. Dividend
5.1 Amount
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.28
-0.58 (-0.79%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.76%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner Change0.29%
Market Cap12.68B
Analysts70.53
Price Target83.81 (14.37%)
Short Float %3.18%
Short Ratio4.28
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)6.08%
Min EPS beat(2)4.59%
Max EPS beat(2)7.57%
EPS beat(4)4
Avg EPS beat(4)7.29%
Min EPS beat(4)1.62%
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)-0.07%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)0.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
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)0%
PT rev (3m)1.57%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)3.84%
EPS NY rev (1m)0.4%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 12.12 | ||
| P/S | 1.53 | ||
| P/FCF | 33.36 | ||
| P/OCF | 16.53 | ||
| P/B | 3.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.64 |
EPS(TTM)5.95
EY8.12%
EPS(NY)6.05
Fwd EY8.25%
FCF(TTM)2.2
FCFY3%
OCF(TTM)4.43
OCFY6.05%
SpS48.02
BVpS18.85
TBVpS-23.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 11.62% | ||
| ROCE | 6.96% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 16.32% | ||
| OM | 10.01% | ||
| PM (TTM) | 4.56% | ||
| GM | 54.71% | ||
| FCFM | 4.57% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 20.82 | ||
| Debt/EBITDA | 5.67 | ||
| Cap/Depr | 71.01% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.7% | ||
| Profit Quality | 100.26% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.52 |
F-Score4
WACC8.3%
ROIC/WACC0.67
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)-76.29%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-35.58%
EPS Next Y-14.97%
EPS Next 2Y-4.91%
EPS Next 3Y1.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.65%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%2.68%
Revenue Next Year2.33%
Revenue Next 2Y1.23%
Revenue Next 3Y1.86%
Revenue Next 5YN/A
EBIT growth 1Y-59.86%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year10.39%
EBIT Next 3Y4.9%
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