SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
NYSE:SOLV - New York Stock Exchange, Inc. - US83444M1018 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to SOLV. SOLV was compared to 187 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SOLV was profitable.
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 2.61%, SOLV is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
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.
SOLV has a Return On Invested Capital of 5.56%. This is in the better half of the industry: SOLV outperforms 79.68% 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 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
The Profit Margin of SOLV (4.56%) is better than 77.01% of its industry peers.
In the last couple of years the Profit Margin of SOLV has declined.
SOLV's Operating Margin of 10.01% is fine compared to the rest of the industry. SOLV outperforms 77.01% of its industry peers.
SOLV's Operating Margin has declined in the last couple of years.
SOLV has a Gross Margin (54.71%) 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 | 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
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.
SOLV has a worse debt/assets ratio than last year.
2.2 Solvency
SOLV has an Altman-Z score of 1.56. This is a bad value and indicates that SOLV is not financially healthy and even has some risk of bankruptcy.
SOLV's Altman-Z score of 1.56 is in line compared to the rest of the industry. SOLV outperforms 55.08% of its industry peers.
SOLV has a debt to FCF ratio of 20.82. This is a negative value and a sign of low solvency as SOLV would need 20.82 years to pay back of all of its debts.
SOLV's Debt to FCF ratio of 20.82 is fine compared to the rest of the industry. SOLV outperforms 71.66% of its industry peers.
SOLV has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.40, SOLV is not doing good in the industry: 87.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 20.82 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.67
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.19 indicates that SOLV should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.19, SOLV is doing worse than 83.96% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that SOLV may have some problems paying its short term obligations.
SOLV has a worse Quick ratio (0.85) than 84.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
SOLV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -76.29%.
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 very negative growth in Revenue. The Revenue has decreased by -18.65% in the last year.
Measured over the past years, SOLV shows a small growth in Revenue. The Revenue has been growing by 0.34% on average per year.
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
The Earnings Per Share is expected to grow by 1.09% on average over the next years.
The Revenue is expected to grow by 1.69% on average over the next years.
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
SOLV is valuated correctly with a Price/Earnings ratio of 13.19.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.45, SOLV is valued rather cheaply.
SOLV is valuated correctly with a Price/Forward Earnings ratio of 12.99.
Based on the Price/Forward Earnings ratio, SOLV is valued cheaply inside the industry as 86.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, SOLV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 12.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLV is valued a bit cheaper than the industry average as 79.14% 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 79.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.74 | ||
| EV/EBITDA | 15.22 |
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
No dividends for SOLV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.5
+0.25 (+0.32%)
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 Cap13.58B
Analysts70.53
Price Target83.81 (6.76%)
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 | 13.19 | ||
| Fwd PE | 12.99 | ||
| P/S | 1.63 | ||
| P/FCF | 35.74 | ||
| P/OCF | 17.71 | ||
| P/B | 4.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.22 |
EPS(TTM)5.95
EY7.58%
EPS(NY)6.04
Fwd EY7.7%
FCF(TTM)2.2
FCFY2.8%
OCF(TTM)4.43
OCFY5.65%
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 | 1.56 |
F-Score4
WACC8.25%
ROIC/WACC0.67
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