(SOLV) Solventum - Overview
Sector: Healthcare | Industry: Medical Instruments & Supplies | Exchange: NYSE (USA) | Market Cap: 13.005m USD | Total Return: 1.8% in 12m
Industry Rotation: +2.0
Avg Turnover: 114M
EPS Trend: -61.0%
Qual. Beats: 0
Rev. Trend: 29.0%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Solventum Corporation (SOLV) is a diversified healthcare technology company organized into three primary operating segments: MedSurg, Dental Solutions, and Health Information Systems. The company’s portfolio ranges from physical medical supplies, such as advanced wound care and orthodontic products, to software-driven clinical documentation and coding automation platforms.
Operating within the Health Care Equipment sector, Solventum utilizes a multi-channel commercial model that includes direct-to-consumer sales, e-commerce, and specialized distribution networks. This sector is characterized by high research and development costs and rigorous regulatory oversight, which often create significant barriers to entry for new competitors.
The company was established as an independent entity in 2023 following its spin-off from 3M, inheriting a global infrastructure that serves both clinical providers and original equipment manufacturers. Investors can further analyze the companys valuation metrics and historical performance data on ValueRay.
- Medsurg segment performance hinges on global surgical volume and advanced wound care adoption
- Dental Solutions revenue tied to discretionary consumer spending on orthodontics and restorative procedures
- Health Information Systems growth depends on hospital adoption of AI-driven coding automation
- Post-spin-off debt reduction and operational efficiency improvements influence investor sentiment and valuation
| Net Income: 1.43b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -4.09 > 1.0 |
| NWC/Revenue: 2.87% < 20% (prev 5.86%; Δ -2.99% < -1%) |
| CFO/TA 0.01 > 3% & CFO 151.0m > Net Income 1.43b |
| Net Debt (4.52b) to EBITDA (2.76b): 1.64 < 3 |
| Current Ratio: 1.07 > 1.5 & < 3 |
| Outstanding Shares: last quarter (175.5m) vs 12m ago 0.40% < -2% |
| Gross Margin: 53.67% > 18% (prev 0.55%; Δ 5.31k% > 0.5%) |
| Asset Turnover: 57.73% > 50% (prev 57.19%; Δ 0.54% > 0%) |
| Interest Coverage Ratio: 6.55 > 6 (EBITDA TTM 2.76b / Interest Expense TTM 305.0m) |
| A: 0.02 (Total Current Assets 3.58b - Total Current Liabilities 3.35b) / Total Assets 14.10b |
| B: 0.13 (Retained Earnings 1.81b / Total Assets 14.10b) |
| C: 0.14 (EBIT TTM 2.00b / Avg Total Assets 14.31b) |
| D: 0.13 (Book Value of Equity 1.14b / Total Liabilities 9.13b) |
| Altman-Z'' Score: 1.60 = BB |
| DSRI: 0.96 (Receivables 1.06b/1.11b, Revenue 8.26b/8.31b) |
| GMI: 1.02 (GM 53.67% / 54.59%) |
| AQI: 0.90 (AQ_t 0.64 / AQ_t-1 0.71) |
| SGI: 0.99 (Revenue 8.26b / 8.31b) |
| TATA: 0.09 (NI 1.43b - CFO 151.0m) / TA 14.10b) |
| Beneish M-Score: -3.01 (Cap -4..+1) = AA |
Over the past week, the price has changed by +1.20%, over one month by +7.47%, over three months by +0.72% and over the past year by +1.81%.
- StrongBuy: 1
- Buy: 2
- Hold: 8
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 81.1 | 9.2% |
P/E Forward = 11.3636
P/S = 1.5741
P/B = 2.5569
P/EG = 1.2198
Revenue TTM = 8.26b USD
EBIT TTM = 2.00b USD
EBITDA TTM = 2.76b USD
Long Term Debt = 4.58b USD (from longTermDebt, last quarter)
Short Term Debt = 505.0m USD (from shortTermDebt, last quarter)
Debt = 5.08b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.52b USD (from netDebt column, last quarter)
Enterprise Value = 17.52b USD (13.01b + Debt 5.08b - CCE 561.0m)
Interest Coverage Ratio = 6.55 (Ebit TTM 2.00b / Interest Expense TTM 305.0m)
EV/FCF = -86.33x (Enterprise Value 17.52b / FCF TTM -203.0m)
FCF Yield = -1.16% (FCF TTM -203.0m / Enterprise Value 17.52b)
FCF Margin = -2.46% (FCF TTM -203.0m / Revenue TTM 8.26b)
Net Margin = 17.33% (Net Income TTM 1.43b / Revenue TTM 8.26b)
Gross Margin = 53.67% ((Revenue TTM 8.26b - Cost of Revenue TTM 3.83b) / Revenue TTM)
Gross Margin QoQ = 54.66% (prev 49.30%)
Tobins Q-Ratio = 1.24 (Enterprise Value 17.52b / Total Assets 14.10b)
Interest Expense / Debt = 1.22% (Interest Expense 62.0m / Debt 5.08b)
Taxrate = 18.75% (3.00m / 16.0m)
NOPAT = 1.62b (EBIT 2.00b * (1 - 18.75%))
Current Ratio = 1.07 (Total Current Assets 3.58b / Total Current Liabilities 3.35b)
Debt / Equity = 1.02 (Debt 5.08b / totalStockholderEquity, last quarter 4.97b)
Debt / EBITDA = 1.64 (Net Debt 4.52b / EBITDA 2.76b)
Debt / FCF = -22.26 (negative FCF - burning cash) (Net Debt 4.52b / FCF TTM -203.0m)
Total Stockholder Equity = 4.66b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.01% (Net Income 1.43b / Total Assets 14.10b)
RoE = 30.71% (Net Income TTM 1.43b / Total Stockholder Equity 4.66b)
RoCE = 21.64% (EBIT 2.00b / Capital Employed (Equity 4.66b + L.T.Debt 4.58b))
RoIC = 15.57% (NOPAT 1.62b / Invested Capital 10.43b)
WACC = 6.22% (E(13.01b)/V(18.09b) * Re(8.26%) + D(5.08b)/V(18.09b) * Rd(1.22%) * (1-Tc(0.19)))
Discount Rate = 8.26% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 94.39 | Cagr: 0.71%
[DCF] Fair Price = unknown (Cash Flow -203.0m)
EPS Correlation: -60.99 | EPS CAGR: -17.95% | SUE: 0.70 | # QB: 0
Revenue Correlation: 29.00 | Revenue CAGR: -0.67% | SUE: 2.06 | # QB: 4
EPS current Quarter (2026-06-30): EPS=1.90 | Chg30d=+14.40% | Revisions=+20% | Analysts=10
EPS next Quarter (2026-09-30): EPS=1.43 | Chg30d=-15.01% | Revisions=+50% | Analysts=10
EPS current Year (2026-12-31): EPS=6.54 | Chg30d=+1.12% | Revisions=+62% | GrowthEPS=+7.0% | GrowthRev=-1.5%
EPS next Year (2027-12-31): EPS=7.04 | Chg30d=-0.01% | Revisions=-20% | GrowthEPS=+7.7% | GrowthRev=+3.6%
[Analyst] Revisions Ratio: +62%