SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - NYSE:SOLV - US83444M1018 - Common Stock
75.66 USD
+0.44 (+0.58%)
75.66 USD
0 (0%)
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SOLV was profitable.
SOLV had a positive operating cash flow in the past year.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.91%, SOLV belongs to the top of the industry, outperforming 94.71% of the companies in the same industry.
SOLV has a better Return On Equity (30.57%) than 98.41% of its industry peers.
SOLV has a better Return On Invested Capital (5.13%) than 77.78% 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
With an excellent Profit Margin value of 18.14%, SOLV belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
SOLV's Profit Margin has declined in the last couple of years.
SOLV has a better Operating Margin (8.44%) than 75.66% of its industry peers.
SOLV's Operating Margin has declined in the last couple of years.
SOLV has a Gross Margin (54.18%) 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 | 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) just above the Cost of Capital (WACC), SOLV is creating some value.
Compared to 1 year ago, SOLV has about the same amount of shares outstanding.
The debt/assets ratio for SOLV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.94 indicates that SOLV is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.94, SOLV is doing good in the industry, outperforming 60.32% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 102.74, SOLV is doing good in the industry, outperforming 66.14% 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.
SOLV has a Debt to Equity ratio of 1.03. This is in the lower half of the industry: SOLV underperforms 77.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 102.74 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.64
WACC8.07%
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.
Looking at the Current ratio, with a value of 1.50, SOLV is doing worse than 75.66% 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 has a Quick ratio of 1.14. This is in the lower half of the industry: SOLV underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.76% over the past year.
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
The Earnings Per Share is expected to grow by 4.37% on average over the next years.
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 12.74 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 87.83% of the companies listed in the same industry.
SOLV is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
SOLV is valuated reasonably with a Price/Forward Earnings ratio of 11.81.
91.01% of the companies in the same industry are more expensive than SOLV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SOLV to the average of the S&P500 Index (34.59), we can say SOLV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOLV indicates a rather cheap valuation: SOLV is cheaper than 82.54% of the companies listed in the same industry.
SOLV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOLV is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 262.37 | ||
| EV/EBITDA | 13.5 |
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 |
75.66
+0.44 (+0.58%)
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 Cap13.12B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts72.38
Price Target87.02 (15.01%)
Short Float %3%
Short Ratio4.09
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 | 12.74 | ||
| Fwd PE | 11.81 | ||
| P/S | 1.56 | ||
| P/FCF | 262.37 | ||
| P/OCF | 26.61 | ||
| P/B | 2.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.5 |
EPS(TTM)5.94
EY7.85%
EPS(NY)6.41
Fwd EY8.47%
FCF(TTM)0.29
FCFY0.38%
OCF(TTM)2.84
OCFY3.76%
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 | 1.94 |
F-Score6
WACC8.07%
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 6 / 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.