Solventum Corporation (SOLV) AI Stock Analysis

• Market Cap: $12.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.64
• Revenue Growth: 2.46%
• EPS Growth: -64.37%
• Country: US
• Employees: 22,000
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Care Facilities
• EPS (TTM): 1.69
• Shares Outstanding: 173,387,800
• 10 Day Avg. Volume: 1,200,762
• 30 Day Avg. Volume: 1,202,379
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 2.46
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 16.15
• 1Y Price Target: $89.50
• Price Target Upside: 25.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: $78.00 ▲(9.29% Upside)

Solventum Corporation's overall stock score is driven by strong earnings call performance and strategic growth initiatives. However, financial performance concerns, including high leverage and declining cash flow, weigh on the score. Technical indicators and valuation suggest caution, with the stock appearing expensive and showing mixed momentum signals.

Positive Factors

Revenue Growth

Raising sales growth guidance reflects strong market demand and effective strategic initiatives, indicating robust future revenue expansion.

Strategic Partnerships

The partnership with Ensemble strengthens Solventum's market position by enhancing service offerings, potentially driving long-term growth.

Product Innovation

Strong performance in MedSurg, driven by new product launches, highlights Solventum's innovation capability and competitive advantage.

Negative Factors

High Leverage

High leverage increases financial risk, potentially impacting Solventum's ability to invest in growth and weather economic downturns.

Declining Cash Flow

Weakening cash flow limits Solventum's financial flexibility, potentially affecting its ability to fund operations and strategic initiatives.

Profitability Challenges

Decreasing profit margins suggest rising costs or pricing pressures, which could hinder Solventum's long-term profitability and competitiveness.

Solventum Corporation Business Overview & Revenue Model

Company Description

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. It operates through four segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration. The Medsurg segment is a provider of solutions including advanced wound care, I.V. site management, sterilization assurance, temperature management, surgical supplies, stethoscopes, and medical electrodes. The Dental Solutions segment provides a comprehensive suite of dental and orthodontic products including brackets, aligners, restorative cements, and bonding agents. The Health Information Systems provides software solutions including computer-assisted, physician documentation, direct-to-bill and coding automation, classification methodologies, speech, recognition, and data visualization platforms. The Purification and Filtration segment provides purification and filtration technologies including filters, purifiers, cartridges, and membranes. The company was incorporated in 2023 and is based in Saint Paul, Minnesota.

How the Company Makes Money

Solventum Corporation generates revenue primarily through the sale of its specialty solvent products to a wide range of industries. Key revenue streams include direct sales to manufacturers in the pharmaceutical and agricultural sectors, as well as partnerships with distributors who extend the reach of its products. The company also engages in contract manufacturing and custom formulation services, which provide additional income by developing tailored solutions for specific customer needs. Significant partnerships with major players in the chemical and manufacturing industries enhance Solventum's market presence and contribute to its earnings by ensuring a steady demand for its innovative products.

Solventum Corporation Financial Statement Overview

Summary

Solventum Corporation shows strong revenue growth but faces challenges in profitability and leverage management. The income statement indicates robust expansion, yet declining margins suggest cost pressures. The balance sheet highlights increased financial risk due to high leverage, and cash flow metrics reveal weakening cash generation, which could affect liquidity.

Income Statement

Solventum Corporation's income statement shows a mixed performance. The TTM data indicates a strong revenue growth rate of 96.3%, which is a positive sign of expansion. However, the gross profit margin has decreased from previous years, indicating potential cost pressures. The net profit margin has also declined, suggesting reduced profitability. EBIT and EBITDA margins have decreased, reflecting operational challenges. Overall, while revenue growth is robust, profitability metrics have weakened.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.14 in the TTM, indicating significant leverage and potential financial risk. The return on equity has decreased, reflecting lower profitability relative to equity. The equity ratio has also declined, suggesting a higher reliance on debt financing. While the company has a solid asset base, the increasing leverage poses a risk to financial stability.

Cash Flow

Cash flow analysis shows a concerning trend with a significant decline in free cash flow growth, down by 61.8% in the TTM. The operating cash flow to net income ratio has decreased, indicating less cash generation relative to net income. The free cash flow to net income ratio has also declined, suggesting reduced cash efficiency. Overall, the cash flow position is weakening, which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.39B	8.25B	8.20B	8.13B	8.17B
Gross Profit	4.57B	4.59B	4.69B	4.70B	4.92B
EBITDA	1.28B	1.53B	2.23B	2.27B	2.48B
Net Income	380.00M	479.00M	1.35B	1.34B	1.46B
Balance Sheet
Total Assets	15.07B	14.46B	14.38B	13.59B	14.07B
Cash, Cash Equivalents and Short-Term Investments	492.00M	762.00M	600.00M	61.00M	91.00M
Total Debt	7.82B	8.01B	98.00M	95.00M	112.00M
Total Liabilities	11.43B	11.50B	10.97B	1.85B	2.02B
Stockholders Equity	3.65B	2.96B	3.41B	11.74B	12.06B
Cash Flow
Free Cash Flow	147.00M	805.00M	1.63B	1.43B	1.93B
Operating Cash Flow	586.00M	1.19B	1.92B	1.68B	2.20B
Investing Cash Flow	-444.00M	-380.00M	-230.00M	-253.00M	-278.00M
Financing Cash Flow	-555.00M	-240.00M	-1.55B	-1.46B	-1.96B

Solventum Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOLV, the sentiment is Negative. The current price of 71.37 is below the 20-day moving average (MA) of 72.88, below the 50-day MA of 72.84, and below the 200-day MA of 72.46, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 19.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOLV.

Solventum Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	78 Outperform	$12.78B	10.58	17.94%	0.40%	9.61%	39.65%
THC	75 Outperform	$17.85B	12.93	39.58%	―	-1.09%	-43.10%
FMS	73 Outperform	$14.85B	20.84	3.69%	3.08%	1.11%	25.84%
EHC	73 Outperform	$12.76B	24.77	17.23%	0.54%	11.80%	30.02%
SOLV	61 Neutral	$12.37B	32.88	11.64%	―	2.46%	-64.37%
DVA	61 Neutral	$9.35B	12.85	-226.24%	―	5.09%	7.85%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Solventum Corporation Corporate Events

Solventum Upsizes Cash Tender Offers for Debt

On September 8, 2025, Solventum Corporation announced the results and upsizing of its cash tender offers to purchase certain outstanding debt securities. The company increased its aggregate purchase cap from $1.75 billion to $2 billion and adjusted the maximum amounts for specific note pools. The early tender results revealed that the aggregate purchase price of notes exceeded the set caps, leading Solventum to anticipate not accepting any notes tendered after the early tender date, September 5, 2025. This move reflects Solventum’s strategic financial management to optimize its debt structure.

The most recent analyst rating on (SOLV) stock is a Hold with a $78.00 price target. To see the full list of analyst forecasts on Solventum Corporation stock, see the SOLV Stock Forecast page.

Solventum Sells Purification Business to Thermo Fisher

Solventum Corporation completed the sale of its Purification & Filtration business to Thermo Fisher Scientific Inc. for $4.0 billion in cash on September 1, 2025. This transaction is a significant step in Solventum’s transformation plan, allowing the company to reduce debt and strengthen its balance sheet, while also updating its financial guidance for 2025 to reflect the divestiture’s impact.

The most recent analyst rating on (SOLV) stock is a Hold with a $78.00 price target. To see the full list of analyst forecasts on Solventum Corporation stock, see the SOLV Stock Forecast page.

Solventum Corporation Initiates $1.75 Billion Tender Offers

On August 22, 2025, Solventum Corporation announced the initiation of cash tender offers to purchase its outstanding notes for up to $1.75 billion. The tender offers include various senior notes with different maturity dates, with a significant portion allocated to notes due in 2027. This move is part of Solventum’s strategic financial management, potentially impacting its debt structure and offering stakeholders an opportunity to tender their notes under specified conditions.

The most recent analyst rating on (SOLV) stock is a Hold with a $77.00 price target. To see the full list of analyst forecasts on Solventum Corporation stock, see the SOLV Stock Forecast page.

Solventum Announces Secondary Offering Pricing

On August 13, 2025, Solventum Corporation announced the pricing of a secondary offering of 8,800,000 shares of its common stock, which was sold by 3M Company, the selling shareholder. The offering, underwritten by Goldman Sachs & Co. LLC and BofA Securities, Inc., is expected to generate approximately $648 million in gross proceeds for 3M Company, with Solventum not receiving any proceeds from the sale. The transaction was registered under the Securities Act of 1933 and is expected to close on August 15, 2025, subject to customary conditions.

The most recent analyst rating on (SOLV) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on Solventum Corporation stock, see the SOLV Stock Forecast page.