We assign a fundamental rating of 4 out of 10 to SOLV. SOLV was compared to 184 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.

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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

With an excellent Return On Assets value of 10.91%, SOLV belongs to the best of the industry, outperforming 95.11% of the companies in the same industry.
SOLV has a Return On Equity of 30.57%. This is amongst the best in the industry. SOLV outperforms 98.91% of its industry peers.
SOLV has a Return On Invested Capital of 5.13%. This is in the better half of the industry: SOLV outperforms 76.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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

With an excellent Profit Margin value of 18.14%, SOLV belongs to the best of the industry, outperforming 94.02% of the companies in the same industry.
In the last couple of years the Profit Margin of SOLV has declined.
SOLV's Operating Margin of 8.44% is fine compared to the rest of the industry. SOLV outperforms 76.09% of its industry peers.
In the last couple of years the Operating Margin of SOLV has declined.
SOLV has a Gross Margin of 54.18%. This is comparable to the rest of the industry: SOLV outperforms 50.54% of 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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOLV is destroying value.
SOLV has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for SOLV is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 1.98 indicates that SOLV is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOLV's Altman-Z score of 1.98 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.
The Debt to FCF ratio of SOLV (102.74) is better than 66.30% of its industry peers.
A Debt/Equity ratio of 1.03 is on the high side and indicates that SOLV has dependencies on debt financing.
SOLV has a Debt to Equity ratio of 1.03. This is in the lower half of the industry: SOLV underperforms 75.54% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.03
Debt/FCF	102.74
Altman-Z	1.98

ROIC/WACC0.51

WACC10.1%

2.3 Liquidity

A Current Ratio of 1.50 indicates that SOLV should not have too much problems paying its short term obligations.
SOLV has a worse Current ratio (1.50) than 73.91% of its industry peers.
A Quick Ratio of 1.14 indicates that SOLV should not have too much problems paying its short term obligations.
SOLV has a Quick ratio of 1.14. This is in the lower half of the industry: SOLV underperforms 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

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.
SOLV shows a small growth in Revenue. In the last year, the Revenue has grown by 2.28%.
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.
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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.30, the valuation of SOLV can be described as correct.
SOLV's Price/Earnings ratio is rather cheap when compared to the industry. SOLV is cheaper than 91.85% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, SOLV is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.19, SOLV is valued correctly.
SOLV's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOLV is cheaper than 92.93% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. SOLV is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	13.3
Fwd PE	12.19

4.2 Price Multiples

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