Solventum (SOLV)
Health Care · $15.1B market cap · SEC CIK 0001964738
fundamentals score out of 100
Next reports on Nov 4, 2026, with analysts expecting $1.38 in earnings per share.
The case for SOLV
- Cheap on earnings at 10.5×, well under the market's usual 20×.
- Earns 29% back on shareholder equity.
- Earnings per share up 277.1%.
- Moves less than the market (beta 0.73).
The case against
- Burned $10.0M of free cash in FY2025.
- Long-term debt of $5.0B would take 14 years of operating cash flow to repay.
- Revenue was flat on the year (-0.9%).
- Free-cash-flow yield of -0.1% is lower than 98% of Health Care companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 70 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 61 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 59 |
| Momentumhow the price has behaved lately | 79 |
| Stabilityhow violently it moves, what it owes and what it pays you | 34 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 10.5× |
|---|---|
| Price / book | 2.78× |
| Price / sales | 1.8× |
| Revenue growth (YoY) | -0.9% |
| EPS growth (YoY) | +277.1% |
| Gross margin | 55% |
| Operating margin | 24% |
| Net margin | 17% |
| Return on equity | 29% |
| Debt / equity | 1.10× |
| Current ratio | 1.02 |
| Dividend yield | none |
| Beta | 0.73 |
| 52-week range | $62.38 – $94.16 |
| Position in that range | 83% of the way up |
| 3-month return | +17.8% |
| 1-year return | +20.5% |
Five years of financials, as filed
Pulled from Solventum's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $8.3B | $8.3B | $8.2B | $8.1B | — |
| Gross profit | $4.5B | $4.6B | $4.7B | $4.7B | — |
| Operating income | $2.2B | $1.0B | $1.7B | $1.7B | — |
| Net income | $1.6B | $479M | $1.3B | $1.3B | — |
| Operating cash flow | $369M | $1.2B | $1.9B | $1.7B | — |
| Capital expenditure | $379M | $380M | $290M | $251M | — |
| Total assets | $14.3B | $14.5B | $13.9B | — | — |
| Total liabilities | $9.2B | $11.5B | $2.3B | — | — |
| Shareholder equity | $5.0B | $3.0B | $11.7B | $11.7B | $12.1B |
| Cash | $878M | $762M | $194M | $61.0M | $91.0M |
| Long-term debt | $5.0B | $7.8B | $0 | — | — |
| Free cash flow | -$10.0M | $805M | $1.6B | $1.4B | — |
| Gross margin | 53.5% | 55.6% | 57.3% | 57.7% | — |
| Operating margin | 26.2% | 12.6% | 20.6% | 20.8% | — |
| Net margin | 18.7% | 5.8% | 16.4% | 16.5% | — |
| Diluted shares | 175M | 174M | 173M | 173M | — |
Share count is essentially flat over 3 years.
What Solventum says it does
Solventum Corporation ("Solventum," "we," "our," "us," or the "Company"), is a leading global healthcare company developing, manufacturing, and commercializing a broad portfolio of solutions that leverages deep material science, data science, and digital capabilities to address critical customer and patient needs. We constantly seek to enable the improvement of standards of care and move healthcare forward with innovation powered by insights, clinical intelligence, technology, and manufacturing expertise. Our 70+ year history of discovering and innovating advanced solutions has helped us solve our customers’ toughest challenges. Our solutions are relied on every day within the global healthcare industry to deliver higher-quality patient care, more efficient processes and workflows, and improved standards of safety and accuracy. Additionally, our products and services are present along a patient’s journey through prevention, diagnosis,…
Risk factors SOLV lists in its 10-K
- Regulation of Medical Devices and Pharmaceutical Products
- Regulation on Advertising, Marketing, and Promotion
- Environmental, Health, and Safety Laws
- Information about our Executive Officers
- Risks Related to the Spin-Off and Solventum’s Relationship with 3M
- Solventum may not achieve some or all of the expected benefits of the Spin-Off
- In connection with the Spin-Off, Solventum incurred debt obligations and may incur additional obligations in the future, which could adversely affect its business and profitability and its ability to meet other obligations
- Solventum may not be able to engage in desirable capital-raising or strategic transactions following the Spin-Off
- obtained, Solventum may not be entitled to the full benefit of such contracts, permits and other assets and rights, which could increase its expenses or otherwise harm its business and financial performance
- Following the Spin-Off, Solventum’s commercial relationships with 3M remain significant, which could adversely affect Solventum’s business, its ability to meet other obligations and the market price of its common stock
- Risks Related to Solventum’s Business
- General Economic and Business Risks
- Solventum’s results may be impacted by the effects of, and changes in, worldwide economic, political, regulatory, international trade and geopolitical conditions, war and other events beyond its control
- The deployment and use of artificial intelligence (