SOLVENTUM CORP(NYSE:SOLV) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to SOLV. SOLV was compared to 191 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 valued correctly, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

SOLV had positive earnings in the past year.

In the past year SOLV had a positive cash flow from operations.

1.2 Ratios

The Return On Assets of SOLV (4.88%) is better than 83.16% of its industry peers.

SOLV has a Return On Equity of 22.56%. This is amongst the best in the industry. SOLV outperforms 96.84% of its industry peers.

With an excellent Return On Invested Capital value of 8.83%, SOLV belongs to the best of the industry, outperforming 88.95% of the companies in the same industry.

SOLV had an Average Return On Invested Capital over the past 3 years of 11.33%. This is above the industry average of 8.08%.

		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

With an excellent Profit Margin value of 8.76%, SOLV belongs to the best of the industry, outperforming 82.11% of the companies in the same industry.

With an excellent Operating Margin value of 15.90%, SOLV belongs to the best of the industry, outperforming 87.37% of the companies in the same industry.

SOLV's Gross Margin of 56.38% is in line compared to the rest of the industry. SOLV outperforms 52.63% of its industry peers.

		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

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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 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.

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 1.57, we must say that SOLV is in the distress zone and has some risk of bankruptcy.

SOLV has a Altman-Z score (1.57) which is in line with its industry peers.

SOLV has a debt to FCF ratio of 6.92. This is a slightly negative value and a sign of low solvency as SOLV would need 6.92 years to pay back of all of its debts.

Looking at the Debt to FCF ratio, with a value of 6.92, SOLV is in the better half of the industry, outperforming 73.68% of the companies in the same industry.

A Debt/Equity ratio of 2.45 is on the high side and indicates that SOLV has dependencies on debt financing.

SOLV has a worse Debt to Equity ratio (2.45) than 84.74% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.45
Debt/FCF	6.92
Altman-Z	1.57

ROIC/WACC0.96

WACC9.24%

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.

With a Current ratio value of 1.15, SOLV is not doing good in the industry: 87.37% of the companies in the same industry are doing better.

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.

SOLV's Quick ratio of 0.83 is on the low side compared to the rest of the industry. SOLV is outperformed by 86.32% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.15
Quick Ratio	0.83

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

SOLV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.22%.

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

The Earnings Per Share is expected to decrease by -8.25% on average over the next years.

Based on estimates for the next years, SOLV will show a small growth in Revenue. The Revenue will grow by 1.48% on average per year.

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

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.69, SOLV is valued on the expensive side.

Compared to the rest of the industry, the Price/Earnings ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 90.53% of the companies listed in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 28.64, SOLV is valued a bit cheaper.

A Price/Forward Earnings ratio of 13.12 indicates a correct valuation of SOLV.

SOLV's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOLV is cheaper than 93.16% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 24.51. SOLV is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	17.69
Fwd PE	13.12

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SOLV is valued cheaper than 93.16% of the companies in the same industry.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 96.84% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	10.85
EV/EBITDA	10.84

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%

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5. Dividend

5.1 Amount

No dividends for SOLV!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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SOLVENTUM CORP

NYSE:SOLV (1/23/2025, 9:31:38 PM)

After market: 73.6 0 (0%)

73.6

-0.06 (-0.08%)

Chartmill FA Rating

GICS SectorHealth Care

GICS IndustryGroupHealth Care Equipment & Services

GICS IndustryHealth Care Equipment & Supplies

Earnings (Last)11-07 2024-11-07/amc

Earnings (Next)N/A N/A

Inst Owners61.8%

Inst Owner ChangeN/A

Ins Owners0.02%

Ins Owner Change0.12%

Market Cap12.72B

Analysts55.29

Price Target75.24 (2.23%)

Short Float %3.19%

Short Ratio4.73

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)8.49%

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)-0.72%

PT rev (3m)16.62%

EPS NQ rev (1m)0%

EPS NQ rev (3m)5.84%

EPS NY rev (1m)0%

EPS NY rev (3m)3.18%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)2.35%

Revenue NY rev (1m)0%

Revenue NY rev (3m)0.37%

Valuation

		Industry Rank	Sector Rank
PE	17.69
Fwd PE	13.12
P/S	1.55
P/FCF	10.85
P/OCF	8.4
P/B	3.98
P/tB	N/A
EV/EBITDA	10.84

EPS(TTM)4.16

EY5.65%

EPS(NY)5.61

Fwd EY7.62%

FCF(TTM)6.78

FCFY9.22%

OCF(TTM)8.76

OCFY11.9%

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	1.57

F-Score3

WACC9.24%

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 Year27.48%

EBIT Next 3Y7.48%

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

SOLVENTUM CORP (SOLV) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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