SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - NYSE:SOLV - US83444M1018 - Common Stock
70.88 USD
+0.36 (+0.51%)
70.88 USD
0 (0%)
Overall SOLV gets a fundamental rating of 3 out of 10. We evaluated SOLV against 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.
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
With a decent Return On Assets value of 2.52%, SOLV is doing good in the industry, outperforming 75.92% of the companies in the same industry.
SOLV has a Return On Equity of 10.43%. This is amongst the best in the industry. SOLV outperforms 85.86% of its industry peers.
SOLV has a better Return On Invested Capital (5.20%) than 77.49% 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 8.89%.
The 3 year average ROIC (9.85%) for SOLV is well above the current ROIC(5.20%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 10.43% | ||
| ROIC | 5.2% |
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 4.53% is fine compared to the rest of the industry. SOLV outperforms 75.39% of its industry peers.
SOLV's Profit Margin has declined in the last couple of years.
SOLV has a better Operating Margin (9.66%) than 78.01% of its industry peers.
In the last couple of years the Operating Margin of SOLV has declined.
SOLV has a Gross Margin of 54.65%. This is comparable to the rest of the industry: SOLV outperforms 50.26% of its industry peers.
In the last couple of years the Gross Margin of SOLV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.66% | ||
| PM (TTM) | 4.53% | ||
| GM | 54.65% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SOLV is still creating some value.
Compared to 1 year ago, SOLV has about the same amount of shares outstanding.
SOLV has a worse debt/assets ratio than last year.
2.2 Solvency
SOLV has an Altman-Z score of 1.47. This is a bad value and indicates that SOLV is not financially healthy and even has some risk of bankruptcy.
SOLV has a Altman-Z score of 1.47. This is comparable to the rest of the industry: SOLV outperforms 57.07% of its industry peers.
SOLV has a debt to FCF ratio of 53.90. This is a negative value and a sign of low solvency as SOLV would need 53.90 years to pay back of all of its debts.
SOLV's Debt to FCF ratio of 53.90 is fine compared to the rest of the industry. SOLV outperforms 67.02% of its industry peers.
SOLV has a Debt/Equity ratio of 2.14. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.14, SOLV is doing worse than 84.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 53.9 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.65
WACC7.96%
2.3 Liquidity
SOLV has a Current Ratio of 1.22. This is a normal value and indicates that SOLV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.22, SOLV is doing worse than 81.68% of the companies in the same industry.
SOLV has a Quick Ratio of 1.22. 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 0.86 is on the low side compared to the rest of the industry. SOLV is outperformed by 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
SOLV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.49%.
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.
Looking at the last year, SOLV shows a small growth in Revenue. The Revenue has grown by 2.21% in the last year.
SOLV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.34% yearly.
EPS 1Y (TTM)-64.49%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%8.33%
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%3.84%
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 2.26% on average per year.
The Revenue is expected to grow by 0.21% on average over the next years.
EPS Next Y-9.76%
EPS Next 2Y-2.73%
EPS Next 3Y2.26%
EPS Next 5YN/A
Revenue Next Year0.2%
Revenue Next 2Y-1.51%
Revenue Next 3Y0.21%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.66, the valuation of SOLV can be described as very reasonable.
Based on the Price/Earnings ratio, SOLV is valued cheaper than 90.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.34, SOLV is valued rather cheaply.
The Price/Forward Earnings ratio is 11.20, which indicates a very decent valuation of SOLV.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaper than 91.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, SOLV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
SOLV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SOLV is cheaper than 79.58% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SOLV is valued a bit cheaper than 71.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.76 | ||
| EV/EBITDA | 14.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.73%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
70.88
+0.36 (+0.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners66.69%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner Change-33.64%
Market Cap12.29B
Analysts73
Price Target88.07 (24.25%)
Short Float %2.73%
Short Ratio3.7
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)11.33%
Min EPS beat(2)7.57%
Max EPS beat(2)15.09%
EPS beat(4)4
Avg EPS beat(4)10.65%
Min EPS beat(4)4.59%
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)0.32%
Min Revenue beat(2)-0.05%
Max Revenue beat(2)0.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.22%
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)-0.48%
PT rev (3m)5.09%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)3.12%
EPS NY rev (1m)0.59%
EPS NY rev (3m)6.13%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-0.91%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 11.2 | ||
| P/S | 1.47 | ||
| P/FCF | 84.76 | ||
| P/OCF | 21.04 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.59 |
EPS(TTM)6.08
EY8.58%
EPS(NY)6.33
Fwd EY8.93%
FCF(TTM)0.84
FCFY1.18%
OCF(TTM)3.37
OCFY4.75%
SpS48.38
BVpS21.02
TBVpS-22.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 10.43% | ||
| ROCE | 6.5% | ||
| ROIC | 5.2% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 14.75% | ||
| OM | 9.66% | ||
| PM (TTM) | 4.53% | ||
| GM | 54.65% | ||
| FCFM | 1.73% |
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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.14 | ||
| Debt/FCF | 53.9 | ||
| Debt/EBITDA | 5.81 | ||
| Cap/Depr | 82.21% | ||
| Cap/Sales | 5.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.45% | ||
| Profit Quality | 38.16% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.47 |
F-Score4
WACC7.96%
ROIC/WACC0.65
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)-64.49%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%8.33%
EPS Next Y-9.76%
EPS Next 2Y-2.73%
EPS Next 3Y2.26%
EPS Next 5YN/A
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%3.84%
Revenue Next Year0.2%
Revenue Next 2Y-1.51%
Revenue Next 3Y0.21%
Revenue Next 5YN/A
EBIT growth 1Y-47.23%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year15.04%
EBIT Next 3Y6.93%
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