SOLVENTUM CORP (SOLV)
US83444M1018 - Common Stock
SOLV gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 188 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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
The Return On Assets of SOLV (4.88%) is better than 83.42% of its industry peers.
The Return On Equity of SOLV (22.56%) is better than 96.79% of its industry peers.
SOLV's Return On Invested Capital of 8.83% is amongst the best of the industry. SOLV outperforms 88.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOLV is above the industry average of 8.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 22.56% | ||
| ROIC | 8.83% |
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 8.76%, SOLV belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
SOLV has a Operating Margin of 15.90%. This is amongst the best in the industry. SOLV outperforms 87.17% of its industry peers.
SOLV's Gross Margin of 56.38% is in line compared to the rest of the industry. SOLV outperforms 51.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.9% | ||
| PM (TTM) | 8.76% | ||
| GM | 56.38% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SOLV is still creating some value.
The number of shares outstanding for SOLV remains at a similar level compared to 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
Based on the Altman-Z score of 1.53, we must say that SOLV is in the distress zone and has some risk of bankruptcy.
SOLV has a Altman-Z score of 1.53. This is comparable to the rest of the industry: SOLV outperforms 53.48% of its industry peers.
SOLV has a debt to FCF ratio of 6.92. This is a slightly negative value and a sign of low solvency as SOLV would need 6.92 years to pay back of all of its debts.
SOLV's Debt to FCF ratio of 6.92 is fine compared to the rest of the industry. SOLV outperforms 74.33% of its industry peers.
SOLV has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
SOLV has a Debt to Equity ratio of 2.45. This is amonst the worse of the industry: SOLV underperforms 86.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 6.92 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.98
WACC9.05%
2.3 Liquidity
SOLV has a Current Ratio of 1.15. This is a normal value and indicates that SOLV is financially healthy and should not expect problems in meeting its short term obligations.
SOLV has a worse Current ratio (1.15) than 90.37% of its industry peers.
SOLV has a Quick Ratio of 1.15. This is a bad value and indicates that SOLV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SOLV (0.83) is worse than 87.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.83 |
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%.
SOLV shows a small growth in Revenue. In the last year, the Revenue has grown by 0.82%.
EPS 1Y (TTM)0.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-73.7%
Revenue 1Y (TTM)0.82%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.39%
3.2 Future
Based on estimates for the next years, SOLV will show a decrease in Earnings Per Share. The EPS will decrease by -7.66% on average per year.
Based on estimates for the next years, SOLV will show a small growth in Revenue. The Revenue will grow by 1.40% on average per year.
EPS Next Y-16.01%
EPS Next 2Y-14.44%
EPS Next 3Y-7.66%
EPS Next 5YN/A
Revenue Next Year2.17%
Revenue Next 2Y1.23%
Revenue Next 3Y1.4%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.74, which indicates a correct valuation of SOLV.
Based on the Price/Earnings ratio, SOLV is valued cheaper than 90.37% of the companies in the same industry.
SOLV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 12.19, SOLV is valued correctly.
95.19% of the companies in the same industry are more expensive than SOLV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.82. SOLV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLV is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SOLV is valued cheaper than 97.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.26 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
A cheap valuation may be justified as SOLV's earnings are expected to decrease with -7.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.44%
EPS Next 3Y-7.66%
5. Dividend
5.1 Amount
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SOLVENTUM CORP
NYSE:SOLV (11/21/2024, 8:04:01 PM)
After market: 69.08 -0.55 (-0.79%)69.63
+1.24 (+1.81%)
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 Cap12.03B
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 | 16.74 | ||
| Fwd PE | 12.19 | ||
| 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 | 4.88% | ||
| ROE | 22.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.9% | ||
| PM (TTM) | 8.76% | ||
| GM | 56.38% | ||
| 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 | 2.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.83 | ||
| 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-16.01%
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