SOLVENTUM CORP (SOLV)
US83444M1018 - Common Stock
We assign a fundamental rating of 3 out of 10 to SOLV. SOLV was compared to 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 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 an excellent Return On Assets value of 7.26%, SOLV belongs to the best of the industry, outperforming 87.17% of the companies in the same industry.
The Return On Equity of SOLV (36.90%) is better than 98.40% of its industry peers.
With an excellent Return On Invested Capital value of 10.23%, SOLV belongs to the best of the industry, outperforming 90.37% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SOLV is above the industry average of 8.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 36.9% | ||
| ROIC | 10.23% |
ROA(3y)9.97%
ROA(5y)N/A
ROE(3y)11.69%
ROE(5y)N/A
ROIC(3y)11.33%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 12.89%, SOLV belongs to the best of the industry, outperforming 89.30% of the companies in the same industry.
Looking at the Operating Margin, with a value of 18.70%, SOLV belongs to the top of the industry, outperforming 91.44% of the companies in the same industry.
The Gross Margin of SOLV (56.98%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.7% | ||
| PM (TTM) | 12.89% | ||
| GM | 56.98% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
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.
SOLV has about the same amout of shares outstanding than it did 1 year ago.
SOLV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SOLV has an Altman-Z score of 1.62. This is a bad value and indicates that SOLV is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SOLV (1.62) is comparable to the rest of the industry.
The Debt to FCF ratio of SOLV is 5.45, which is a neutral value as it means it would take SOLV, 5.45 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 5.45, SOLV belongs to the best of the industry, outperforming 80.21% of the companies in the same industry.
SOLV has a Debt/Equity ratio of 2.90. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOLV (2.90) is worse than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.24
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.31 indicates that SOLV should not have too much problems paying its short term obligations.
SOLV has a worse Current ratio (1.31) than 86.63% of its industry peers.
A Quick Ratio of 0.96 indicates that SOLV may have some problems paying its short term obligations.
The Quick ratio of SOLV (0.96) is worse than 83.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
SOLV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.22%.
The Revenue has been growing slightly by 0.82% in the past year.
EPS 1Y (TTM)0.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-85.59%
Revenue 1Y (TTM)0.82%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-49.08%
3.2 Future
SOLV is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.39% yearly.
The Revenue is expected to grow by 1.46% on average over the next years.
EPS Next Y-16.59%
EPS Next 2Y-14.5%
EPS Next 3Y-7.39%
EPS Next 5YN/A
Revenue Next Year2.07%
Revenue Next 2Y1.1%
Revenue Next 3Y1.46%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.77, the valuation of SOLV can be described as reasonable.
Based on the Price/Earnings ratio, SOLV is valued cheaply inside the industry as 96.79% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SOLV to the average of the S&P500 Index (30.57), we can say SOLV is valued rather cheaply.
SOLV is valuated correctly with a Price/Forward Earnings ratio of 12.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 95.72% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.04. SOLV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
SOLV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SOLV is cheaper than 93.58% of the companies in the same industry.
SOLV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SOLV is cheaper than 97.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.18 | ||
| EV/EBITDA | 9.52 |
4.3 Compensation for Growth
A cheap valuation may be justified as SOLV's earnings are expected to decrease with -7.39% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.5%
EPS Next 3Y-7.39%
5. Dividend
5.1 Amount
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SOLVENTUM CORP
NYSE:SOLV (9/18/2024, 11:06:10 AM)
72.15
-0.18 (-0.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 12.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 36.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.7% | ||
| PM (TTM) | 12.89% | ||
| GM | 56.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0.22%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-16.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.82%
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y