SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOLV - US83444M1018 - Common Stock
79.48 USD
-0.96 (-1.19%)
79.31 USD
-0.17 (-0.21%)
Overall SOLV gets a fundamental rating of 4 out of 10. We evaluated SOLV against 186 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 has a correct valuation and a medium growth rate.
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
- Looking at the Return On Assets, with a value of 10.91%, SOLV belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
- The Return On Equity of SOLV (30.57%) is better than 98.92% of its industry peers.
- SOLV's Return On Invested Capital of 5.13% is fine compared to the rest of the industry. SOLV outperforms 76.88% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of SOLV (18.14%) is better than 93.55% of its industry peers.
- In the last couple of years the Profit Margin of SOLV has declined.
- With a decent Operating Margin value of 8.44%, SOLV is doing good in the industry, outperforming 76.34% of the companies in the same industry.
- In the last couple of years the Operating Margin of SOLV has declined.
- SOLV's Gross Margin of 54.18% is in line compared to the rest of the industry. SOLV outperforms 50.54% of 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOLV is destroying value.
- Compared to 1 year ago, SOLV has about the same amount of shares outstanding.
- SOLV has a worse debt/assets ratio than last year.
2.2 Solvency
- SOLV has an Altman-Z score of 1.99. 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 1.99, SOLV is in the better half of the industry, outperforming 60.22% of the companies in the same industry.
- 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 has a better Debt to FCF ratio (102.74) than 66.67% 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.
- With a Debt to Equity ratio value of 1.03, SOLV is not doing good in the industry: 75.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.51
WACC10.06%
2.3 Liquidity
- SOLV has a Current Ratio of 1.50. This is a normal value and indicates that SOLV is financially healthy and should not expect problems in meeting 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 74.19% 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.
- SOLV has a worse Quick ratio (1.14) than 69.89% of its industry peers.
| 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.
- The earnings per share for SOLV have been decreasing by -31.19% on average. This is quite bad
- Looking at the last year, SOLV shows a small growth in Revenue. The Revenue has grown by 2.28% in the last 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
- 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.
- SOLV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.73% yearly.
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-1.51%
Revenue Next 3Y0.09%
Revenue Next 5Y0.73%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- Based on the Price/Earnings ratio of 13.38, the valuation of SOLV can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 91.94% of the companies listed in the same industry.
- SOLV is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- SOLV is valuated correctly with a Price/Forward Earnings ratio of 12.24.
- Based on the Price/Forward Earnings ratio, SOLV is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
- SOLV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 12.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SOLV is valued cheaper than 83.87% of the companies in the same industry.
- SOLV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOLV is cheaper than 67.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 275.72 | ||
| EV/EBITDA | 14.04 |
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% |
79.48
-0.96 (-1.19%)
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 Cap13.79B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts74.29
Price Target90.42 (13.76%)
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)3.28%
PT rev (3m)2.66%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)0%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 12.24 | ||
| P/S | 1.64 | ||
| P/FCF | 275.72 | ||
| P/OCF | 27.96 | ||
| P/B | 2.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.04 |
EPS(TTM)5.94
EY7.47%
EPS(NY)6.49
Fwd EY8.17%
FCF(TTM)0.29
FCFY0.36%
OCF(TTM)2.84
OCFY3.58%
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 | 1.99 |
F-Score6
WACC10.06%
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-1.51%
Revenue Next 3Y0.09%
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.