SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOLV - US83444M1018 - Common Stock
81.9 USD
+1.79 (+2.23%)
82 USD
+0.1 (+0.12%)
Overall SOLV gets a fundamental rating of 4 out of 10. We evaluated SOLV against 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 decent growth rate and is not valued too expensively.
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
Looking at the Return On Assets, with a value of 10.91%, SOLV belongs to the top of the industry, outperforming 95.19% of the companies in the same industry.
Looking at the Return On Equity, with a value of 30.57%, SOLV belongs to the top of the industry, outperforming 98.93% of the companies in the same industry.
SOLV has a Return On Invested Capital of 5.13%. This is in the better half of the industry: SOLV outperforms 77.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
SOLV has a Profit Margin of 18.14%. This is amongst the best in the industry. SOLV outperforms 93.58% 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 8.44%, SOLV is in the better half of the industry, outperforming 75.94% of the companies in the same industry.
In the last couple of years the Operating Margin of SOLV has declined.
SOLV's Gross Margin of 54.18% is in line compared to the rest of the industry. SOLV outperforms 50.27% 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SOLV is 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 2.02. This is not the best score and indicates that SOLV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.02, SOLV is in the better half of the industry, outperforming 61.50% of the companies in the same industry.
The Debt to FCF ratio of SOLV is 102.74, which is on the high side as it means it would take SOLV, 102.74 years of fcf income to pay off all of its debts.
SOLV has a better Debt to FCF ratio (102.74) than 67.38% 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.
With a Debt to Equity ratio value of 1.03, SOLV is not doing good in the industry: 75.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.63
WACC8.14%
2.3 Liquidity
SOLV has a Current Ratio of 1.50. 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 1.50, SOLV is not doing good in the industry: 75.40% of the companies in the same industry are doing better.
SOLV has a Quick Ratio of 1.14. This is a normal value and indicates that SOLV is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SOLV (1.14) is worse than 71.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
SOLV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 108.76%, which is quite impressive.
The earnings per share for SOLV have been decreasing by -31.19% on average. This is quite bad
Looking at the last year, SOLV shows a small growth in Revenue. The Revenue has grown by 2.28% 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)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
The Earnings Per Share is expected to grow by 4.39% 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 1.10% on average per year.
EPS Next Y-8.16%
EPS Next 2Y-1.46%
EPS Next 3Y1.69%
EPS Next 5Y4.39%
Revenue Next Year0.5%
Revenue Next 2Y-1.54%
Revenue Next 3Y0.07%
Revenue Next 5Y1.1%
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.
4. Valuation
4.1 Price/Earnings Ratio
SOLV is valuated correctly with a Price/Earnings ratio of 13.79.
Based on the Price/Earnings ratio, SOLV is valued cheaper than 88.77% of the companies in the same industry.
SOLV is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.61, the valuation of SOLV can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 90.91% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.80. SOLV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
82.89% of the companies in the same industry are more expensive than SOLV, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOLV indicates a somewhat cheap valuation: SOLV is cheaper than 67.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 284.11 | ||
| EV/EBITDA | 14.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.46%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.9
+1.79 (+2.23%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners72.33%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner Change-33.85%
Market Cap14.21B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts72.38
Price Target87.55 (6.9%)
Short Float %2.77%
Short Ratio3.87
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)8.87%
Min EPS beat(2)2.66%
Max EPS beat(2)15.09%
EPS beat(4)4
Avg EPS beat(4)7.48%
Min EPS beat(4)2.66%
Max EPS beat(4)15.09%
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)-0.05%
Max Revenue beat(2)0.19%
Revenue beat(4)2
Avg Revenue beat(4)0%
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)0.61%
PT rev (3m)-1.08%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)3.86%
EPS NY rev (1m)1.3%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 12.61 | ||
| P/S | 1.69 | ||
| P/FCF | 284.11 | ||
| P/OCF | 28.81 | ||
| P/B | 2.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.38 |
EPS(TTM)5.94
EY7.25%
EPS(NY)6.5
Fwd EY7.93%
FCF(TTM)0.29
FCFY0.35%
OCF(TTM)2.84
OCFY3.47%
SpS48.44
BVpS28.75
TBVpS-14.4
PEG (NY)N/A
PEG (5Y)N/A
Graham Number61.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.91% | ||
| ROE | 30.57% | ||
| ROCE | 6.43% | ||
| ROIC | 5.13% | ||
| ROICexc | 6.03% | ||
| ROICexgc | 29.65% | ||
| OM | 8.44% | ||
| PM (TTM) | 18.14% | ||
| GM | 54.18% | ||
| FCFM | 0.6% |
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
ROICexgc growth 3Y-14.04%
ROICexgc 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-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Debt/EBITDA | 4.17 | ||
| Cap/Depr | 84.87% | ||
| Cap/Sales | 5.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.05% | ||
| Profit Quality | 3.28% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.02 |
F-Score6
WACC8.14%
ROIC/WACC0.63
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)108.76%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-8.54%
EPS Next Y-8.16%
EPS Next 2Y-1.46%
EPS Next 3Y1.69%
EPS Next 5Y4.39%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%0.67%
Revenue Next Year0.5%
Revenue Next 2Y-1.54%
Revenue Next 3Y0.07%
Revenue Next 5Y1.1%
EBIT growth 1Y-45.71%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year16.51%
EBIT Next 3Y6.48%
EBIT Next 5Y3.32%
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
SOLVENTUM CORP / SOLV FAQ
Can you provide the ChartMill fundamental rating for SOLVENTUM CORP?
ChartMill assigns a fundamental rating of 4 / 10 to SOLV.
What is the valuation status for SOLV stock?
ChartMill assigns a valuation rating of 5 / 10 to SOLVENTUM CORP (SOLV). This can be considered as Fairly Valued.
Can you provide the profitability details for SOLVENTUM CORP?
SOLVENTUM CORP (SOLV) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for SOLV stock?
The Earnings per Share (EPS) of SOLVENTUM CORP (SOLV) is expected to decline by -8.16% in the next year.