SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
NYSE:SOLV - New York Stock Exchange, Inc. - US83444M1018 - Common Stock - Currency: USD
SOLV gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 190 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of SOLV while its profitability can be described as average. SOLV is valued correctly, but it does not seem to be growing.
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
SOLV has a better Return On Assets (3.31%) than 78.42% of its industry peers.
SOLV has a Return On Equity of 16.19%. This is amongst the best in the industry. SOLV outperforms 92.63% of its industry peers.
With an excellent Return On Invested Capital value of 7.09%, SOLV belongs to the best of the industry, outperforming 83.16% 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 7.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 16.19% | ||
| ROIC | 7.09% |
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 better Profit Margin (5.80%) than 78.42% of its industry peers.
SOLV's Profit Margin has declined in the last couple of years.
SOLV's Operating Margin of 12.64% is fine compared to the rest of the industry. SOLV outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of SOLV has declined.
SOLV has a Gross Margin of 55.65%. This is comparable to the rest of the industry: SOLV outperforms 49.47% of its industry peers.
SOLV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.64% | ||
| PM (TTM) | 5.8% | ||
| GM | 55.65% |
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
SOLV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SOLV has about the same amout of shares outstanding than it did 1 year ago.
SOLV has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that SOLV is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.48, SOLV perfoms like the industry average, outperforming 58.95% of the companies in the same industry.
The Debt to FCF ratio of SOLV is 9.95, which is on the high side as it means it would take SOLV, 9.95 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.95, SOLV is in the better half of the industry, outperforming 74.21% of the companies in the same industry.
SOLV has a Debt/Equity ratio of 2.64. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOLV (2.64) is worse than 84.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 9.95 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.78
WACC9.03%
2.3 Liquidity
SOLV has a Current Ratio of 1.20. This is a normal value and indicates that SOLV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.20, SOLV is doing worse than 81.05% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that SOLV may have some problems paying its short term obligations.
SOLV has a worse Quick ratio (0.84) than 81.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
SOLV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.67%.
Measured over the past years, SOLV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.19% on average per year.
The Revenue has been growing slightly by 0.70% 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)-64.67%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-88.74%
Revenue 1Y (TTM)0.7%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%1.87%
3.2 Future
The Earnings Per Share is expected to decrease by -0.95% 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 0.68% on average per year.
EPS Next Y-15.47%
EPS Next 2Y-4.2%
EPS Next 3Y-0.95%
EPS Next 5YN/A
Revenue Next Year0.63%
Revenue Next 2Y-0.17%
Revenue Next 3Y0.68%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 9.90, the valuation of SOLV can be described as very reasonable.
94.74% of the companies in the same industry are more expensive than SOLV, based on the Price/Earnings ratio.
SOLV is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.72, which indicates a very decent 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 91.05% of the companies listed in the same industry.
SOLV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
86.32% of the companies in the same industry are more expensive than SOLV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SOLV is valued cheaper than 90.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| EV/EBITDA | 11.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.2%
EPS Next 3Y-0.95%
5. Dividend
5.1 Amount
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
66.26
+0.59 (+0.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners64.61%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner Change0.05%
Market Cap11.46B
Analysts55.29
Price Target82.51 (24.52%)
Short Float %3.11%
Short Ratio4.1
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)9.98%
Min EPS beat(2)4.59%
Max EPS beat(2)15.36%
EPS beat(4)4
Avg EPS beat(4)9.61%
Min EPS beat(4)1.62%
Max EPS beat(4)16.86%
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)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.43%
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)0.15%
PT rev (3m)9.66%
EPS NQ rev (1m)-1.15%
EPS NQ rev (3m)-5.67%
EPS NY rev (1m)0.84%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 11.72 | ||
| P/S | 1.39 | ||
| P/FCF | 14.24 | ||
| P/OCF | 9.67 | ||
| P/B | 3.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.71 |
EPS(TTM)6.69
EY10.1%
EPS(NY)5.66
Fwd EY8.54%
FCF(TTM)4.65
FCFY7.02%
OCF(TTM)6.85
OCFY10.34%
SpS47.71
BVpS17.1
TBVpS-34.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 16.19% | ||
| ROCE | 8.87% | ||
| ROIC | 7.09% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 40.23% | ||
| OM | 12.64% | ||
| PM (TTM) | 5.8% | ||
| GM | 55.65% | ||
| FCFM | 9.75% |
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
ROICexcg growth 3Y-14.04%
ROICexcg 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-Score3
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 9.95 | ||
| Debt/EBITDA | 4.89 | ||
| Cap/Depr | 68.47% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 3.63 | ||
| Cash Conversion | 74.16% | ||
| Profit Quality | 168.06% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.48 |
F-Score3
WACC9.03%
ROIC/WACC0.78
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)-64.67%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-88.74%
EPS Next Y-15.47%
EPS Next 2Y-4.2%
EPS Next 3Y-0.95%
EPS Next 5YN/A
Revenue 1Y (TTM)0.7%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%1.87%
Revenue Next Year0.63%
Revenue Next 2Y-0.17%
Revenue Next 3Y0.68%
Revenue Next 5YN/A
EBIT growth 1Y-35.11%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year14%
EBIT Next 3Y5.28%
EBIT Next 5YN/A
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