SOLVENTUM CORP (SOLV)
US83444M1018 - Common Stock
Taking everything into account, SOLV scores 3 out of 10 in our fundamental rating. SOLV was compared to 187 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 valuation in line with the averages, but it does not seem to be growing.
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
The Return On Assets of SOLV (4.88%) is better than 82.89% of its industry peers.
The Return On Equity of SOLV (22.56%) is better than 96.79% of its industry peers.
SOLV has a Return On Invested Capital of 8.83%. This is amongst the best in the industry. SOLV outperforms 88.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOLV is above the industry average of 8.19%.
| Industry Rank | Sector 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
1.3 Margins
SOLV has a Profit Margin of 8.76%. This is amongst the best in the industry. SOLV outperforms 81.82% of its industry peers.
Looking at the Operating Margin, with a value of 15.90%, SOLV belongs to the top of the industry, outperforming 87.17% of the companies in the same industry.
Looking at the Gross Margin, with a value of 56.38%, SOLV is in line with its industry, outperforming 51.87% of the companies in the same industry.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SOLV is still creating some value.
The number of shares outstanding for SOLV remains at a similar level compared to 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.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that SOLV is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.51, SOLV is in line with its industry, outperforming 54.01% of the companies in the same industry.
The Debt to FCF ratio of SOLV is 6.92, which is on the high side as it means it would take SOLV, 6.92 years of fcf income to pay off 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 73.80% of its industry peers.
A Debt/Equity ratio of 2.45 is on the high side and indicates that SOLV has dependencies on debt financing.
SOLV has a Debt to Equity ratio of 2.45. This is amonst the worse of the industry: SOLV underperforms 85.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 6.92 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.96
WACC9.16%
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.
SOLV's Current ratio of 1.15 is on the low side compared to the rest of the industry. SOLV is outperformed by 89.84% of its industry peers.
SOLV has a Quick Ratio of 1.15. This is a bad value and indicates that SOLV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.83, SOLV is not doing good in the industry: 87.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.22% over the past year.
SOLV shows a small growth in Revenue. In the last year, the Revenue has grown by 0.82%.
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
Based on estimates for the next years, SOLV will show a decrease in Earnings Per Share. The EPS will decrease by -8.25% on average per year.
The Revenue is expected to grow by 1.48% on average over the next years.
EPS Next Y-13.93%
EPS Next 2Y-15.22%
EPS Next 3Y-8.25%
EPS Next 5YN/A
Revenue Next Year2.44%
Revenue Next 2Y1.41%
Revenue Next 3Y1.48%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
SOLV is valuated correctly with a Price/Earnings ratio of 16.02.
Based on the Price/Earnings ratio, SOLV is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
SOLV is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.88 indicates a reasonable valuation of SOLV.
SOLV's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOLV is cheaper than 94.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. SOLV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLV is valued cheaply inside the industry as 93.05% of the companies are valued more expensively.
SOLV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SOLV is cheaper than 97.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 10.21 |
4.3 Compensation for Growth
A cheap valuation may be justified as SOLV's earnings are expected to decrease with -8.25% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.22%
EPS Next 3Y-8.25%
5. Dividend
5.1 Amount
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SOLVENTUM CORP
NYSE:SOLV (12/23/2024, 6:30:00 PM)
After market: 66.63 0 (0%)66.63
-0.2 (-0.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners61.8%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner Change0.12%
Market Cap11.51B
Analysts55
Price Target75.79 (13.75%)
Short Float %2.61%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)10.69%
PT rev (3m)23.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.84%
EPS NY rev (1m)2.47%
EPS NY rev (3m)3.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 11.88 | ||
| P/S | 1.4 | ||
| P/FCF | 9.82 | ||
| P/OCF | 7.61 | ||
| P/B | 3.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.21 |
EPS(TTM)4.16
EY6.24%
EPS(NY)5.61
Fwd EY8.42%
FCF(TTM)6.78
FCFY10.18%
OCF(TTM)8.76
OCFY13.14%
SpS47.55
BVpS18.48
TBVpS-35.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.51 |
F-Score3
WACC9.16%
ROIC/WACC0.96
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-15.22%
EPS Next 3Y-8.25%
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 2Y1.41%
Revenue Next 3Y1.48%
Revenue Next 5YN/A
EBIT growth 1Y-0.06%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year27.19%
EBIT Next 3Y7.72%
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