Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Solventum Corporation is a healthcare company that makes products to help doctors and patients. They create medical supplies like bandages and surgical tools, dental products like braces and fillings, and software that helps doctors manage patient information. They also provide advanced systems to clean and filter water and air. Essentially, Solventum focuses on improving health and safety in hospitals and dental offices.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
2025-02-27
2024-11-07
2024-08-08
2024-05-09
Takeaways
Solventum Corporation exhibits a diversified product portfolio across critical healthcare segments, which provides stability and growth potential. However, being newly incorporated in 2023, its market position, financial health, and management effectiveness require further evaluation to fully gauge long-term attractiveness.
Historical data shows an impressive CAGR compared with the USA stock market average, reflecting a strong market position.
2Y annualized return is
positive but below market average
at 0.0% per year
SOLV has met or exceeded earnings expectations in
all
recent quarters (4/4)
Latest News
ST. PAUL, Minn. , April 17, 2025 /PRNewswire/ -- Solventum (NYSE: SOLV) will release its first quarter fiscal 2025 financial results on Thursday, May ...
Solventum (SOLV) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help th...
Solventum (SOLV) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely bea...
Reasonable Price-to-Sales Ratio
Strong Gross Profit Margin
Decent Return on Equity
Adequate Current Ratio
🏆 Strong Operational Foundation
🚀 Innovative Product Launches
📈 Financial Stability
🌟 Clear Growth Strategy
🔍 Automation and Technology Adoption
High Price-to-Earnings Ratio
Low Net Profit Margin
High Debt Levels
Low Interest Coverage Ratio
⚠️ Dependence on Transition Success
⚖️ Market Positioning Challenges
Overall, Solventum is demonstrating strong operational improvements and has a clear path for future growth, but remains challenged by market positioning and risks associated with ongoing transitions. The company’s focus on innovation and financial stability bodes well for its future prospects.
Analysis Date: February 28, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$34.46
Current Market Price: $66.05
IV/P Ratio: 0.52x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-92.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for SOLV
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (24.01)
P/B ratio ≤ 1.5 (3.88)
Current ratio ≥ 2.0 (1.20x)
Long-term debt < Net current assets (14.30x)
Margin of safety (-92.0%)
SOLV does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
A gross profit margin of 55.66% indicates that SOLV retains a majority of its revenue as profit after accounting for the cost of goods sold, showcasing strong operational efficiency.
With a return on equity (ROE) of 14.86%, SOLV demonstrates effective use of shareholders' equity to generate profits.
The net profit margin of 5.79% indicates that only a small portion of revenue translates into profit, which could raise concerns about overall profitability.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
14.86%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-22)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
55.66%
Higher values indicate better efficiency in production
TTM (as of 2025-04-22)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
5.79%
Higher values indicate better overall profitability
TTM (as of 2025-04-22)
A current ratio of 1.20 suggests that SOLV has enough short-term assets to cover its short-term liabilities, indicating reasonable liquidity.
A debt-to-equity ratio of 2.71 indicates that SOLV is heavily reliant on debt financing, which may pose risks if the company faces downturns in revenue.
An interest coverage ratio of 2.83 indicates that SOLV has just enough earnings to cover its interest obligations, which could be a red flag for financial stability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
2.71x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.20x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Solventum has demonstrated a solid operational foundation post-separation from 3M, showcasing a return to positive volume growth for three consecutive quarters. This marks a significant turnaround from the previous trend of negative growth within 3M Healthcare, indicating effective management and operational strategies.
The company has successfully launched innovative products such as the V.A.C. Peel and Place dressing and the 3D printed Clarity Precision Grip attachment, which have received positive responses from customers. These products are expected to enhance market share and operational efficiency.
Solventum ended the year with $762 million in cash and equivalents and has successfully reduced debt by $300 million. This financial stability positions the company well for future growth and strategic acquisitions.
The company acknowledges significant risks associated with its ERP cutover and transition service agreements, which are crucial to maintaining operational continuity. Disruptions here could negatively impact overall performance.
Solventum has outlined a clear three-phase transformation strategy focusing on establishing a foundation, optimizing the portfolio, and unlocking profitable growth. This structured approach is designed to enhance operational efficiency and drive long-term growth.
With advancements in AI-driven autonomous coding within the Health Information Systems segment, there is significant potential for operational efficiency and cost savings, which could enhance profitability.
While Solventum has positive momentum, there is concern regarding its competitive positioning in end markets compared to peers, which may limit growth potential in the near term.