SOLVENTUM CORP (SOLV) Stock Fundamental Analysis
USA - NYSE:SOLV - US83444M1018 - Common Stock
76.19 USD
+0.53 (+0.7%)
76.19 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. There are concerns on the financial health of SOLV while its profitability can be described as average. 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.
In the past year SOLV had a positive cash flow from operations.
1.2 Ratios
SOLV has a better Return On Assets (10.91%) than 94.68% of its industry peers.
SOLV has a Return On Equity of 30.57%. This is amongst the best in the industry. SOLV outperforms 98.40% of its industry peers.
SOLV has a Return On Invested Capital of 5.13%. This is in the better half 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 3 year average ROIC (9.85%) for SOLV is well above the current ROIC(5.13%). The reason for the recent decline needs to be investigated.
| 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 Profit Margin of 18.14%. This is amongst the best in the industry. SOLV outperforms 92.55% of its industry peers.
SOLV's Profit Margin has declined in the last couple of years.
SOLV has a better Operating Margin (8.44%) than 75.53% of its industry peers.
In the last couple of years the Operating Margin of SOLV has declined.
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.
Compared to 1 year ago, SOLV has about the same amount of shares outstanding.
Compared to 1 year ago, SOLV has a worse debt to assets ratio.
2.2 Solvency
SOLV has an Altman-Z score of 1.94. 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.
With a decent Altman-Z score value of 1.94, SOLV is doing good in the industry, outperforming 60.11% 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.
SOLV's Debt to FCF ratio of 102.74 is fine compared to the rest of the industry. SOLV outperforms 65.96% 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.
The Debt to Equity ratio of SOLV (1.03) is worse than 77.13% 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
A Current Ratio of 1.50 indicates that SOLV should not have too much problems paying its short term obligations.
SOLV has a worse Current ratio (1.50) than 76.60% of its industry peers.
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 71.81% 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.
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)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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.83, which 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 88.83% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.56. SOLV is valued slightly cheaper when compared to this.
SOLV is valuated reasonably with a Price/Forward Earnings ratio of 11.89.
90.96% of the companies in the same industry are more expensive than SOLV, based on the Price/Forward Earnings ratio.
SOLV is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 11.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOLV is valued cheaper than 82.45% of the companies in the same industry.
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 | 264.21 | ||
| 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
SOLV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.19
+0.53 (+0.7%)
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 Cap13.21B
Revenue(TTM)8.40B
Net Income(TTM)1.52B
Analysts72.38
Price Target87.02 (14.21%)
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 | 12.83 | ||
| Fwd PE | 11.89 | ||
| P/S | 1.57 | ||
| P/FCF | 264.21 | ||
| P/OCF | 26.8 | ||
| P/B | 2.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.5 |
EPS(TTM)5.94
EY7.8%
EPS(NY)6.41
Fwd EY8.41%
FCF(TTM)0.29
FCFY0.38%
OCF(TTM)2.84
OCFY3.73%
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.