SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOLV - US83444M1018 - Common Stock
85.26 USD
-0.01 (-0.01%)
82.6107 USD
-2.65 (-3.11%)
Taking everything into account, SOLV scores 4 out of 10 in our fundamental rating. SOLV was compared to 188 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 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
SOLV's Return On Assets of 10.91% is amongst the best of the industry. SOLV outperforms 94.68% of its industry peers.
SOLV's Return On Equity of 30.57% is amongst the best of the industry. SOLV outperforms 98.40% of its industry peers.
SOLV has a better Return On Invested Capital (5.13%) than 77.66% 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 8.71%.
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
With an excellent Profit Margin value of 18.14%, SOLV belongs to the best of the industry, outperforming 93.09% of the companies in the same industry.
SOLV's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.44%, SOLV is doing good in the industry, outperforming 75.53% of the companies in the same industry.
In the last couple of years the Operating Margin of SOLV has declined.
With a Gross Margin value of 54.18%, SOLV perfoms like the industry average, outperforming 49.47% of the companies in the same industry.
In the last couple of years the Gross Margin of SOLV has declined.
| 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
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.
Compared to 1 year ago, SOLV has a worse debt to assets ratio.
2.2 Solvency
SOLV has an Altman-Z score of 2.06. 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.
SOLV has a Altman-Z score of 2.06. This is in the better half of the industry: SOLV outperforms 61.70% of its industry peers.
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's Debt to FCF ratio of 102.74 is fine compared to the rest of the industry. SOLV outperforms 66.49% 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.
Looking at the Debt to Equity ratio, with a value of 1.03, SOLV is doing worse than 76.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.64
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.50 indicates that SOLV should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.50, SOLV is doing worse than 76.06% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that SOLV should not have too much problems paying its short term obligations.
SOLV's Quick ratio of 1.14 is on the low side compared to the rest of the industry. SOLV is outperformed by 71.81% 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.
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%.
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 4.37% on average per year.
The Revenue is expected to grow by 0.78% on average over the next years.
EPS Next Y-9.34%
EPS Next 2Y-2.13%
EPS Next 3Y1.95%
EPS Next 5Y4.37%
Revenue Next Year0.44%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.25%
Revenue Next 5Y0.78%
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
A Price/Earnings ratio of 14.35 indicates a correct valuation of SOLV.
87.77% of the companies in the same industry are more expensive than SOLV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. SOLV is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.30 indicates a correct valuation of SOLV.
SOLV's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOLV is cheaper than 88.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. SOLV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 13.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLV is valued cheaply inside the industry as 83.51% of the companies are valued more expensively.
SOLV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOLV is cheaper than 67.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 295.66 | ||
| EV/EBITDA | 14.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.13%
EPS Next 3Y1.95%
5. Dividend
5.1 Amount
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
85.26
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners66.69%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner Change-33.97%
Market Cap14.79B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts72.38
Price Target86.1 (0.99%)
Short Float %3.35%
Short Ratio4.63
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)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)-2.24%
PT rev (3m)-2.71%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)3.86%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 13.3 | ||
| P/S | 1.76 | ||
| P/FCF | 295.66 | ||
| P/OCF | 29.99 | ||
| P/B | 2.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.85 |
EPS(TTM)5.94
EY6.97%
EPS(NY)6.41
Fwd EY7.52%
FCF(TTM)0.29
FCFY0.34%
OCF(TTM)2.84
OCFY3.33%
SpS48.46
BVpS28.76
TBVpS-14.4
PEG (NY)N/A
PEG (5Y)N/A
Graham Number61.99
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 | 2.06 |
F-Score6
WACC8.04%
ROIC/WACC0.64
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-9.34%
EPS Next 2Y-2.13%
EPS Next 3Y1.95%
EPS Next 5Y4.37%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%0.67%
Revenue Next Year0.44%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.25%
Revenue Next 5Y0.78%
EBIT growth 1Y-45.71%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year15.04%
EBIT Next 3Y6.93%
EBIT Next 5Y3.96%
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 for 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.
Can you provide the expected EPS growth for SOLV stock?
The Earnings per Share (EPS) of SOLVENTUM CORP (SOLV) is expected to decline by -9.34% in the next year.