SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOLV - US83444M1018 - Common Stock
85.43 USD
+0.17 (+0.2%)
85.43 USD
0 (0%)
SOLV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 187 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 has a correct valuation and a medium growth rate.
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
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.
The Return On Equity of SOLV (30.57%) is better than 98.93% 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 77.01% 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 93.58% of the companies in the same industry.
In the last couple of years the Profit Margin of SOLV has declined.
SOLV has a Operating Margin of 8.44%. This is in the better half of the industry: SOLV outperforms 75.94% of its industry peers.
SOLV's Operating Margin has declined in the last couple of years.
SOLV has a Gross Margin (54.18%) which is comparable to the rest of the 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
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.
The number of shares outstanding for SOLV remains at a similar level compared to 1 year ago.
SOLV has a worse debt/assets ratio than last year.
2.2 Solvency
SOLV has an Altman-Z score of 2.06. 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.
SOLV's Altman-Z score of 2.06 is fine compared to the rest of the industry. SOLV outperforms 62.03% 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.
SOLV's Debt to FCF ratio of 102.74 is fine compared to the rest of the industry. SOLV outperforms 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.
The Debt to Equity ratio of SOLV (1.03) is worse than 75.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.63
WACC8.13%
2.3 Liquidity
A Current Ratio of 1.50 indicates that SOLV should not have too much problems paying its short term obligations.
SOLV's Current ratio of 1.50 is on the low side compared to the rest of the industry. SOLV is outperformed by 75.40% of its industry peers.
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: 71.66% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.76% over the past year.
The earnings per share for SOLV have been decreasing by -31.19% on average. This is quite bad
The Revenue has been growing slightly by 2.28% in the past 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
SOLV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.39% yearly.
The Revenue is expected to grow by 1.10% on average over the next years.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.38, SOLV is valued correctly.
88.24% of the companies in the same industry are more expensive than SOLV, based on the Price/Earnings ratio.
SOLV is valuated rather cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.15, SOLV is valued correctly.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaper than 89.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, SOLV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 13.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLV is valued cheaper than 82.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SOLV is valued a bit cheaper than the industry average as 67.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 296.36 | ||
| EV/EBITDA | 14.88 |
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
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
85.43
+0.17 (+0.2%)
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 Cap14.82B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts72.38
Price Target87.55 (2.48%)
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 | 14.38 | ||
| Fwd PE | 13.15 | ||
| P/S | 1.76 | ||
| P/FCF | 296.36 | ||
| P/OCF | 30.06 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.88 |
EPS(TTM)5.94
EY6.95%
EPS(NY)6.5
Fwd EY7.6%
FCF(TTM)0.29
FCFY0.34%
OCF(TTM)2.84
OCFY3.33%
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 | 2.06 |
F-Score6
WACC8.13%
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.