Solventum Corp (SOLV)
Health Care · Health Care Technology · US stock · S&P 500 component
$87.45
▲ +0.78 (0.90%)
Fair valueUndervalued
$112 +28.5% to fair value
$56fair band $96–$136$168
Day's range
$86.42 – $87.87
52-week range
$62.38 – $94.16
About Solventum Corp
Solventum is a health care company that supplies products and software to hospitals, clinics, dental practices and health systems. Its portfolio covers wound care and surgical supplies, infection prevention, dental and orthodontic products, and software that helps providers manage clinical information and billing. It was spun out of its former parent company and operates through segments built around medical and surgical products, dental solutions and health information systems.
Revenue comes from the products and software that health care providers order, along with service and support. Sales were $8.3 billion over the last twelve months, with growth of 0.8% a year across the last three years. The operating margin is 25.0%, and the business earns a profit of 19% on the capital invested in it. Net debt is 1.8 times EBITDA, and no dividend is paid. On the site's X-Ray Score it receives 48 out of 100.
Price chart
52-wk range $62.38 – $94.16Volume 769,723Daily, split-adjusted
Vitals
Market cap$15.2B
52-week range$62.38 – $94.16
Volume (last day)769,723
P/E (TTM)10.7
EBIT / EV yield10.5%
Free-cash-flow yield-0.8%
Dividend yieldNo dividend
Revenue (TTM)$8.3B
Net income (TTM)$1.4B
Operating margin25.0%
Return on capital18.5%
Debt incl. leases$5.1B
Cash & securities$403M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$112middle half of models $90 – $123
Undervalued
+28.5% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $87
Undervalued < $96Fair $96 – $136Overvalued > $136
P/E multiple
$86
P/B multiple
$86
P/S multiple
$85
EV/EBITDA multiple
$119
EV/EBIT multiple
$147
EV/revenue multiple
$90
10-year DCF, EBITDA exit
$116
5-year DCF, EBITDA exit
$106
10-year DCF, revenue exit
$114
5-year DCF, revenue exit
$103
10-year DCF, growth exit
$129
5-year DCF, growth exit
$123
Earnings power value
$157
Growth the price implies
0.3%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, but the price is low
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Health Care peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
67/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield10.5%
Free-cash-flow yield-0.8%
Fair value vs price1.3×
Growth
Weak
27/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)0.8%
EPS growth (3y)4.5%
Growth consistency80%
Profitability
Weak
47/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital18.5%
Operating margin25.0%
Gross profitability31.9%
Financial health
Weak
48/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA1.8×
Interest coverNo interest cost
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+2.7%
Mar '25
+3.8%
Jun '25
+0.7%
Sep '25
-3.7%
Dec '25
-3.0%
Mar '26
+2.2%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $2.2B, diluted EPS $0.53.
SWOT analysis: Solventum Corp
Strengthsinside the company
- Return on invested capital is 18.5%, against a median of 11.8% for sector peers.
- Operating margin of 25.0% is well above the 15.8% median of sector peers, a sign of pricing power or lower costs.
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Free cash flow is negative, so spending or debt has to be financed from outside.
Opportunitiesvaluation and setting
- Trades at 10.6x earnings, 63% below the 28.4x median of sector peers.
- The price is 29% below our fair value estimate, with the gap larger than the margin we allow for error.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare SOLV with peers and sector
Medians of 59 Health Care peers and of 59 Health Care stocks in our universe.
Largest peers (X-Ray Score): LLY 62, JNJ 49, ABBV 41, UNH 58, MRK 33, TMO 34.
| Metric | SOLV | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 48 | 49 | 49 |
| Valuation | 67 | 52 | 52 |
| Growth | 27 | 48 | 48 |
| Profitability | 47 | 51 | 51 |
| Financial health | 48 | 48 | 48 |
| Dividends | – | 51 | 51 |
Sector leaders: highest X-Ray Score in Health Care
SOLV ranks #32 of 60 in Health Care by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for SOLV
Each factor is rated by where SOLV stands among the 60 Health Care stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 7 Good · 7 Average · 7 Bad of 21
Growth: 0 · 1 · 2
Profitability: 3 · 2 · 0
Financial strength: 1 · 2 · 1
Valuation: 3 · 1 · 1
Cash flow: 0 · 0 · 3
Efficiency: 0 · 1 · 0
| Factor | SOLV | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +0.8% | Bad beats 19% | +5.5% | – | – |
| Revenue growth, last year | +0.9% | Bad beats 13% | +7.1% | +0.8% | ≈ In line |
| EPS growth, 3 years a year | +4.5% | Average beats 49% | +5.0% | – | – |
| Profitability | |||||
| Gross margin | 54.7% | Average beats 35% | 65.0% | 56.4% | ≈ In line |
| Operating margin | 25.0% | Good beats 78% | 16.4% | 20.7% | ▲ Better |
| Net margin | 17.3% | Good beats 70% | 11.1% | 16.5% | ≈ In line |
| Return on invested capital | 18.5% | Average beats 64% | 12.2% | – | – |
| Return on equity | 29.9% | Good beats 84% | 13.7% | 13.9% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 1.8x | Average beats 58% | 2.0x | 1.6x | ≈ In line |
| Interest cover | 50.0x | Good beats 82% | 9.4x | – | – |
| Current ratio | 1.02 | Bad beats 18% | 1.52 | 1.23 | ▼ Worse |
| Piotroski F-score | 6 / 9 | Average beats 43% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 10.6x | Good beats 95% | 28.2x | – | – |
| Price / book | 3.2x | Average beats 55% | 3.7x | – | – |
| Price / sales | 1.8x | Good beats 73% | 3.7x | – | – |
| EV / EBITDA | 7.7x | Good beats 97% | 17.6x | – | – |
| Free cash flow yield | -0.8% | Bad beats 3% | 4.4% | – | – |
| Cash flow | |||||
| Free cash flow margin | -1.4% | Bad beats 3% | 16.3% | 13.7% | ▼ Worse |
| Cash from operations / net income | 0.15 | Bad beats 1% | 1.61 | 1.34 | ▼ Worse |
| Accruals (lower is better) | +8.6% | Bad beats 1% | −3.9% | – | – |
| Efficiency | |||||
| Days sales outstanding | 58 days | Average beats 66% | 62 days | 46 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 4 Good · ● 5 Average · ● 6 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldBad
Risk models
Altman Z''Bad
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Average
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioBad
Net debt / EBITDAAverage
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalAverage
Operating marginGood
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 48/100.
Financials
| FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|
| Revenue | $8.1B | $8.2B | $8.3B | $8.3B |
| Operating income | $1.7B | $1.7B | $1.0B | $2.2B |
| Net income | $1.3B | $1.3B | $479M | $1.6B |
| Operating cash flow | $1.7B | $1.9B | $1.2B | $369M |
| Operating margin | 20.8% | 20.6% | 12.6% | 26.2% |
| Free cash flow | $1.4B | $1.6B | $805M | −$10M |
| Diluted EPS | $7.78 | $7.79 | $2.76 | $8.88 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
10 bullish · 4 neutral · 2 bearish
Weekly
Strongly bullish
8 bullish · 1 neutral · 1 bearish
Monthly
Strongly bullish
4 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 86.54 | Bullish |
| EMA 10 | 86.73 | Bullish |
| SMA 20 | 87.24 | Bullish |
| EMA 20 | 87.13 | Bullish |
| SMA 50 | 88.59 | Bearish |
| EMA 50 | 86.87 | Bullish |
| SMA 100 | 84.23 | Bullish |
| EMA 100 | 84.33 | Bullish |
| SMA 200 | 78.37 | Bullish |
| EMA 200 | 80.78 | Bullish |
Oscillators (daily)
| RSI (14) | 50.66 | Neutral |
| MACD (12, 26) | -0.49 | Bearish |
| Momentum (12) | 0.47 | Bullish |
| Stochastic %K (14) | 67.53 | Neutral |
| Williams %R (14) | -32.47 | Neutral |
| CCI (20) | -0.47 | Neutral |
Pivot points (classic, last session)
S3 85.17 | S2 85.80 | S1 86.62 | Pivot 87.25 | R1 88.07 | R2 88.70 | R3 89.52 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold SOLV
| ETF | Share of the fund |
|---|---|
| SMLF iShares MSCI USA Small-Cap Multifactor | 0.25% |
| VBR Vanguard Small-Cap Value | 0.24% |
| IYH iShares U.S. Healthcare | 0.21% |
| SCHM Schwab U.S. Mid-Cap | 0.20% |
| RSP Invesco S&P 500 Equal Weight | 0.20% |
| XLV Health Care Select Sector SPDR | 0.20% |
| VHT Vanguard Health Care | 0.18% |
| JHMM John Hancock Multifactor Mid Cap | 0.18% |
The eight funds with the largest weight in SOLV among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
SOLV SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Regulation FD disclosure; Other events
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.