SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
NYSE:SOLV - New York Stock Exchange, Inc. - US83444M1018 - Common Stock - Currency: USD
Taking everything into account, SOLV scores 3 out of 10 in our fundamental rating. SOLV was compared to 187 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 valuation in line with the averages, but it does not seem to be growing.
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 (2.61%) than 76.47% of its industry peers.
With an excellent Return On Equity value of 11.62%, SOLV belongs to the best of the industry, outperforming 87.17% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.56%, SOLV is doing good in the industry, outperforming 79.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SOLV is in line with the industry average of 7.89%.
The last Return On Invested Capital (5.56%) 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 | 2.61% | ||
| ROE | 11.62% | ||
| ROIC | 5.56% |
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 (4.56%) than 77.01% of its industry peers.
In the last couple of years the Profit Margin of SOLV has declined.
SOLV has a Operating Margin of 10.01%. This is in the better half of the industry: SOLV outperforms 77.01% of its industry peers.
SOLV's Operating Margin has declined in the last couple of years.
The Gross Margin of SOLV (54.71%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SOLV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.01% | ||
| PM (TTM) | 4.56% | ||
| GM | 54.71% |
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) just above the Cost of Capital (WACC), SOLV is creating some value.
The number of shares outstanding for SOLV remains at a similar level compared to 1 year ago.
The debt/assets ratio for SOLV is higher compared to a year ago.
2.2 Solvency
SOLV has an Altman-Z score of 1.54. This is a bad value and indicates that SOLV is not financially healthy and even has some risk of bankruptcy.
SOLV has a Altman-Z score of 1.54. This is comparable to the rest of the industry: SOLV outperforms 55.08% of its industry peers.
The Debt to FCF ratio of SOLV is 20.82, which is on the high side as it means it would take SOLV, 20.82 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 20.82, SOLV is doing good in the industry, outperforming 71.66% of the companies in the same industry.
SOLV has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
SOLV's Debt to Equity ratio of 2.40 is on the low side compared to the rest of the industry. SOLV is outperformed by 87.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 20.82 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.68
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.19 indicates that SOLV should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, SOLV is not doing good in the industry: 83.96% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that SOLV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, SOLV is doing worse than 84.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for SOLV have decreased strongly by -76.29% in the last year.
The earnings per share for SOLV have been decreasing by -31.19% on average. This is quite bad
The Revenue for SOLV has decreased by -18.65% in the past year. This is quite bad
SOLV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.34% yearly.
EPS 1Y (TTM)-76.29%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-35.58%
Revenue 1Y (TTM)-18.65%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%2.68%
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 1.09% on average per year.
Based on estimates for the next years, SOLV will show a small growth in Revenue. The Revenue will grow by 1.69% on average per year.
EPS Next Y-15%
EPS Next 2Y-4.96%
EPS Next 3Y1.09%
EPS Next 5YN/A
Revenue Next Year2.33%
Revenue Next 2Y1.23%
Revenue Next 3Y1.69%
Revenue Next 5YN/A
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 12.81 indicates a correct valuation of SOLV.
Compared to the rest of the industry, the Price/Earnings ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 89.84% of the companies listed in the same industry.
SOLV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
SOLV is valuated correctly with a Price/Forward Earnings ratio of 12.62.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaper than 86.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.74. SOLV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOLV indicates a somewhat cheap valuation: SOLV is cheaper than 79.14% of the companies listed in the same industry.
80.21% 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 | 34.71 | ||
| EV/EBITDA | 14.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.96%
EPS Next 3Y1.09%
5. Dividend
5.1 Amount
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.24
-2.26 (-2.88%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.76%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner Change0.29%
Market Cap13.19B
Analysts70.53
Price Target83.81 (9.93%)
Short Float %3.03%
Short Ratio4.11
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)6.08%
Min EPS beat(2)4.59%
Max EPS beat(2)7.57%
EPS beat(4)4
Avg EPS beat(4)7.29%
Min EPS beat(4)1.62%
Max EPS beat(4)15.36%
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)-0.81%
Max Revenue beat(2)0.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
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)2.2%
PT rev (3m)1.57%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)3.93%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 12.62 | ||
| P/S | 1.59 | ||
| P/FCF | 34.71 | ||
| P/OCF | 17.2 | ||
| P/B | 4.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.94 |
EPS(TTM)5.95
EY7.8%
EPS(NY)6.04
Fwd EY7.93%
FCF(TTM)2.2
FCFY2.88%
OCF(TTM)4.43
OCFY5.81%
SpS48.02
BVpS18.85
TBVpS-23.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 11.62% | ||
| ROCE | 6.96% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 16.32% | ||
| OM | 10.01% | ||
| PM (TTM) | 4.56% | ||
| GM | 54.71% | ||
| FCFM | 4.57% |
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-Score4
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 20.82 | ||
| Debt/EBITDA | 5.67 | ||
| Cap/Depr | 71.01% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.7% | ||
| Profit Quality | 100.26% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.54 |
F-Score4
WACC8.23%
ROIC/WACC0.68
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)-76.29%
EPS 3Y-31.19%
EPS 5YN/A
EPS Q2Q%-35.58%
EPS Next Y-15%
EPS Next 2Y-4.96%
EPS Next 3Y1.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.65%
Revenue growth 3Y0.34%
Revenue growth 5YN/A
Sales Q2Q%2.68%
Revenue Next Year2.33%
Revenue Next 2Y1.23%
Revenue Next 3Y1.69%
Revenue Next 5YN/A
EBIT growth 1Y-59.86%
EBIT growth 3Y-16.4%
EBIT growth 5YN/A
EBIT Next Year10.39%
EBIT Next 3Y4.9%
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