Overall SOLV gets a fundamental rating of 4 out of 10. We evaluated SOLV against 186 industry peers in the Health Care Equipment & Supplies industry. While SOLV is still in line with the averages on profitability rating, there are concerns on its financial health. SOLV is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

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

1.2 Ratios

The Return On Assets of SOLV (10.91%) is better than 95.16% of its industry peers.
Looking at the Return On Equity, with a value of 30.57%, SOLV belongs to the top of the industry, outperforming 98.92% of the companies in the same industry.
SOLV has a better Return On Invested Capital (5.13%) than 76.88% 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 8.84%.
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's Profit Margin of 18.14% is amongst the best of the industry. SOLV outperforms 93.55% of its industry peers.
SOLV's Profit Margin has declined in the last couple of years.
SOLV has a Operating Margin of 8.44%. This is in the better half of the industry: SOLV outperforms 76.34% of its industry peers.
SOLV's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.18%, SOLV is in line with its industry, outperforming 50.54% of the companies in the same industry.
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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOLV is destroying 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 2.00. 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 2.00, SOLV is in line with its industry, outperforming 59.14% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 102.74, SOLV is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.03 is on the high side and indicates that SOLV has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.03, SOLV is doing worse than 75.81% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.03
Debt/FCF	102.74
Altman-Z	2

ROIC/WACC0.51

WACC10.09%

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: 74.19% 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.
With a Quick ratio value of 1.14, SOLV is not doing good in the industry: 69.89% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.5
Quick Ratio	1.14

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.
Measured over the past years, SOLV shows a small growth in Revenue. The Revenue has been growing by 0.34% on average per year.

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

Based on estimates for the next years, SOLV will show a small growth in Earnings Per Share. The EPS will grow by 4.39% on average per year.
The Revenue is expected to grow by 0.73% on average over the next years.

EPS Next Y-8.17%

EPS Next 2Y-1.47%

EPS Next 3Y1.69%

EPS Next 5Y4.39%

Revenue Next Year0.5%

Revenue Next 2Y-1.51%

Revenue Next 3Y0.09%

Revenue Next 5Y0.73%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.28, which indicates a correct valuation of SOLV.
Compared to the rest of the industry, the Price/Earnings ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 90.86% of the companies listed in the same industry.
SOLV is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.15 indicates a correct valuation of SOLV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 93.01% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.26. SOLV is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	13.28
Fwd PE	12.15

4.2 Price Multiples

SOLV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SOLV is cheaper than 83.87% of the companies in the same industry.
67.20% of the companies in the same industry are more expensive than SOLV, based on the Price/Free Cash Flow ratio.