SOLV
Solventum·NYSE
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0.87 / 10
Underperform
Solventum's fundamental assessment is concerning, rated 'Underperform' with a quality score of 0.9/10. Key weaknesses include a Cash-MV deficit (-1.2823) and elevated Total profit/EBIT (84.8283), while only Interest coverage ratio (6.5912) and Accounts receivable turnover (6.1338) show moderate strength. The shareholder equity growth of 68.5029% is offset by negative cash-flow trends, and the overall fund factor evaluation is 0, indicating limited fundamental support. Historical back-tests for each metric reveal consistently negative one-month returns, reinforcing the cautious stance.
Analysis Checks(3/10)
Annualized return on equity (%)
Value50.11
Score1/3
Weight12.84%
1M Return-2.18%
Value50.11
Score1/3
Weight12.84%
1M Return-2.18%
Quick ratio
Value1.14
Score0/3
Weight21.00%
1M Return-3.75%
Value1.14
Score0/3
Weight21.00%
1M Return-3.75%
Total profit / EBIT (%)
Value84.83
Score1/3
Weight7.62%
1M Return-1.21%
Value84.83
Score1/3
Weight7.62%
1M Return-1.21%
Interest coverage ratio (EBIT / Interest expense) (%)
Value6.59
Score2/3
Weight13.90%
1M Return-2.49%
Value6.59
Score2/3
Weight13.90%
1M Return-2.49%
ROE (%)
Value37.58
Score1/3
Weight12.84%
1M Return-2.18%
Value37.58
Score1/3
Weight12.84%
1M Return-2.18%
Accounts receivable turnover ratio
Value6.13
Score3/3
Weight-24.61%
1M Return4.14%
Value6.13
Score3/3
Weight-24.61%
1M Return4.14%
Shareholders’ equity attributable to parent company (growth rate compared to beginning of year %)
Value68.50
Score1/3
Weight13.39%
1M Return-2.29%
Value68.50
Score1/3
Weight13.39%
1M Return-2.29%
Long-term debt to working capital ratio (%)
Value4.12
Score2/3
Weight3.28%
1M Return-0.57%
Value4.12
Score2/3
Weight3.28%
1M Return-0.57%
Operating revenue (YoY growth rate %)
Value2.40
Score0/3
Weight28.46%
1M Return-5.85%
Value2.40
Score0/3
Weight28.46%
1M Return-5.85%
Cash-MV
Value-1.28
Score1/3
Weight11.29%
1M Return-2.12%
Value-1.28
Score1/3
Weight11.29%
1M Return-2.12%
Annualized return on equity (%)
Value50.11
Score1/3
Weight12.84%
1M Return-2.18%
Value50.11
Score1/3
Weight12.84%
1M Return-2.18%
Accounts receivable turnover ratio
Value6.13
Score3/3
Weight-24.61%
1M Return4.14%
Value6.13
Score3/3
Weight-24.61%
1M Return4.14%
Quick ratio
Value1.14
Score0/3
Weight21.00%
1M Return-3.75%
Value1.14
Score0/3
Weight21.00%
1M Return-3.75%
Shareholders’ equity attributable to parent company (growth rate compared to beginning of year %)
Value68.50
Score1/3
Weight13.39%
1M Return-2.29%
Value68.50
Score1/3
Weight13.39%
1M Return-2.29%
Total profit / EBIT (%)
Value84.83
Score1/3
Weight7.62%
1M Return-1.21%
Value84.83
Score1/3
Weight7.62%
1M Return-1.21%
Long-term debt to working capital ratio (%)
Value4.12
Score2/3
Weight3.28%
1M Return-0.57%
Value4.12
Score2/3
Weight3.28%
1M Return-0.57%
Interest coverage ratio (EBIT / Interest expense) (%)
Value6.59
Score2/3
Weight13.90%
1M Return-2.49%
Value6.59
Score2/3
Weight13.90%
1M Return-2.49%
Operating revenue (YoY growth rate %)
Value2.40
Score0/3
Weight28.46%
1M Return-5.85%
Value2.40
Score0/3
Weight28.46%
1M Return-5.85%
ROE (%)
Value37.58
Score1/3
Weight12.84%
1M Return-2.18%
Value37.58
Score1/3
Weight12.84%
1M Return-2.18%
Cash-MV
Value-1.28
Score1/3
Weight11.29%
1M Return-2.12%
Value-1.28
Score1/3
Weight11.29%
1M Return-2.12%
Is SOLV undervalued or overvalued?
- SOLV scores 0.87/10 on fundamentals and holds a Premium valuation at present. Backed by its 37.58% ROE, 18.14% net margin, 8.89 P/E ratio, 2.72 P/B ratio, and 110.58% earnings growth, these metrics solidify its Underperform investment rating.
