SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOLV - US83444M1018 - Common Stock
80.03 USD
-5.66 (-6.61%)
80.03 USD
0 (0%)
Taking everything into account, SOLV scores 4 out of 10 in our fundamental rating. SOLV was compared to 185 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 decent growth rate and is not valued too expensively.
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
- SOLV has a better Return On Assets (10.91%) than 95.14% of its industry peers.
- SOLV has a better Return On Equity (30.57%) than 98.92% 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 76.76% 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 8.84%.
- The last Return On Invested Capital (5.13%) for SOLV is well below the 3 year average (9.85%), which needs to be investigated, but indicates that SOLV had better years and this may not be a problem.
| 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 93.51% 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 76.22% 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 in line with its industry peers.
- SOLV's Gross Margin has declined in the last couple of years.
| 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
- SOLV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, SOLV has about the same amount of shares outstanding.
- The debt/assets ratio for SOLV is higher compared to a year ago.
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 59.46% of the companies in the same industry.
- The Debt to FCF ratio of SOLV is 102.74, which is on the high side as it means it would take SOLV, 102.74 years of fcf income to pay off 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 67.03% of the companies in the same industry.
- SOLV has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
- SOLV has a worse Debt to Equity ratio (1.03) than 75.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 2 |
ROIC/WACC0.51
WACC10.04%
2.3 Liquidity
- A Current Ratio of 1.50 indicates that SOLV should not have too much problems paying its short term obligations.
- SOLV has a worse Current ratio (1.50) than 74.59% 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: 70.27% 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
- 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.
- 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.
- SOLV shows a small growth in Revenue. In the last year, the Revenue has grown by 2.28%.
- The Revenue has been growing slightly by 0.34% on average over the past years.
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-1.54%
Revenue Next 3Y0.07%
Revenue Next 5Y0.73%
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
- SOLV is valuated correctly with a Price/Earnings ratio of 13.47.
- 91.35% of the companies in the same industry are more expensive than SOLV, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, SOLV is valued rather cheaply.
- With a Price/Forward Earnings ratio of 12.32, SOLV is valued correctly.
- SOLV's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOLV is cheaper than 92.97% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, SOLV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 12.32 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 82.70% of the companies listed in the same industry.
- 67.57% of the companies in the same industry are more expensive than SOLV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 277.62 | ||
| EV/EBITDA | 14.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.47%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
- SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
80.03
-5.66 (-6.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-23 2026-02-23/bmo
Inst Owners72.36%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner Change-33.83%
Market Cap13.88B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts74.29
Price Target88.84 (11.01%)
Short Float %2.4%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1.48%
PT rev (3m)0.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 12.32 | ||
| P/S | 1.65 | ||
| P/FCF | 277.62 | ||
| P/OCF | 28.16 | ||
| P/B | 2.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.12 |
EPS(TTM)5.94
EY7.42%
EPS(NY)6.49
Fwd EY8.12%
FCF(TTM)0.29
FCFY0.36%
OCF(TTM)2.84
OCFY3.55%
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 |
F-Score6
WACC10.04%
ROIC/WACC0.51
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-8.17%
EPS Next 2Y-1.47%
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 5Y0.73%
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 of SOLVENTUM CORP (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.
How financially healthy is SOLVENTUM CORP?
The financial health rating of SOLVENTUM CORP (SOLV) is 3 / 10.