SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - NYSE:SOLV - US83444M1018 - Common Stock
79.51 USD
+2.2 (+2.85%)
79.51 USD
0 (0%)
SOLV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
With an excellent Return On Assets value of 10.91%, SOLV belongs to the best of the industry, outperforming 94.68% of the companies in the same industry.
The Return On Equity of SOLV (30.57%) is better than 98.40% of its industry peers.
SOLV's Return On Invested Capital of 5.13% is fine compared to the rest of the industry. SOLV outperforms 77.66% 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 8.98%.
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 has a better Profit Margin (18.14%) than 93.09% of its industry peers.
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.
SOLV's Operating Margin has declined in the last couple of years.
SOLV has a Gross Margin of 54.18%. 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 | 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
An Altman-Z score of 1.96 indicates that SOLV is not a great score, but indicates only limited risk for bankruptcy at the moment.
SOLV has a Altman-Z score of 1.96. This is in the better half of the industry: SOLV outperforms 61.17% of its industry peers.
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 65.96% 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.
With a Debt to Equity ratio value of 1.03, SOLV is not doing good in the industry: 77.66% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.63
WACC8.09%
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 77.13% of its industry peers.
A Quick Ratio of 1.14 indicates that SOLV should not have too much problems paying its short term obligations.
The Quick ratio of SOLV (1.14) is worse than 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.
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 4.37% on average per year.
SOLV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.78% yearly.
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
With a Price/Earnings ratio of 13.39, SOLV is valued correctly.
Based on the Price/Earnings ratio, SOLV is valued cheaper than 88.30% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.07. SOLV is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.41, SOLV is valued correctly.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaper than 89.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, SOLV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLV is valued cheaply inside the industry as 82.45% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOLV indicates a somewhat cheap valuation: SOLV is cheaper than 66.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 275.73 | ||
| EV/EBITDA | 13.73 |
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
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.51
+2.2 (+2.85%)
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 Cap13.79B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts72.38
Price Target87.02 (9.45%)
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)-1.2%
PT rev (3m)0.32%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)3.75%
EPS NY rev (1m)0.47%
EPS NY rev (3m)6.62%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-8.43%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.41 | ||
| P/S | 1.64 | ||
| P/FCF | 275.73 | ||
| P/OCF | 27.96 | ||
| P/B | 2.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.73 |
EPS(TTM)5.94
EY7.47%
EPS(NY)6.41
Fwd EY8.06%
FCF(TTM)0.29
FCFY0.36%
OCF(TTM)2.84
OCFY3.58%
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 | 1.96 |
F-Score6
WACC8.09%
ROIC/WACC0.63
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.