Solventum Corporation (SOLV) AI Stock Analysis

• Market Cap: $12.69B
• Dividend Yield: N/A
• Average Volume (3M): 683.97K
• Price to Earnings (P/E): 33.7
• 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: 954,808
• 30 Day Avg. Volume: 683,973
• 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: 1.62
• Enterprise Value/Revenue: 2.46
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 16.15
• 1Y Price Target: $89.33
• Price Target Upside: 22.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 57 Neutral
• Price Target: $74.00 ▲(1.09% Upside)

Solventum's overall score is primarily impacted by financial performance challenges, including high leverage and declining cash flow. While the earnings call provided positive guidance and strategic progress, technical indicators and valuation concerns weigh on the stock's attractiveness.

Positive Factors

Debt Management

Net proceeds from the transaction are primarily intended to pay down debt.

Earnings

Analyst expects EPS to increase after retaining the Drinking Water Filtration business.

Valuation

SOLV's shares are considered undervalued compared to similar companies, trading at a relatively low multiple, which suggests potential for price appreciation.

Negative Factors

Margin Pressure

The transaction is a headwind on Solventum's 200bps gross margin and 100bps operating margin targets due to lower margins in the purification and filtration business.

Market Position

SOLV shares trade below large-cap MedTech peers which possess a better growth and margin profile.

Tariffs

Notable headwinds include tariffs and a cost impact from its 3M supply contract.

Solventum Corporation Business Overview & Revenue Model

Company Description

Solventum Corporation (SOLV) is a leading provider in the specialty chemicals sector, focusing on innovative solvent solutions for various industries, including pharmaceuticals, agriculture, and industrial manufacturing. The company specializes in developing high-performance solvents that enhance product efficiency and sustainability, catering to the growing demand for eco-friendly chemical alternatives. With a strong commitment to research and development, Solventum offers a diverse portfolio of products that meet the stringent regulatory standards of its global clientele.

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 demonstrates a stable revenue base with efficient cost management, but faces challenges with declining profitability margins and high leverage. The balance sheet shows a significant reliance on debt, which could pose risks if not managed properly. Cash flow generation remains strong, although free cash flow has decreased, indicating potential constraints on future investments.

Income Statement

Solventum Corporation shows a stable revenue base with a slight growth in TTM (Trailing-Twelve-Months) revenue compared to the previous year. The gross profit margin remains strong at approximately 54.6% for TTM, indicating efficient cost management. However, there is a noticeable decline in EBIT and EBITDA margins, suggesting increased operational costs or reduced operational efficiency. The net profit margin has also decreased, reflecting a drop in net income from the previous year.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of approximately 2.43 in TTM, indicating a significant reliance on debt financing. However, the equity ratio stands at 22.5%, showing a reasonable level of equity financing. Return on equity has decreased, reflecting the drop in net income. Overall, while the company maintains a stable asset base, the high leverage poses a potential risk.

Cash Flow

Solventum's cash flow statement reveals a decline in free cash flow growth rate, with TTM free cash flow significantly lower than the previous year. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, reflecting reduced cash available after capital expenditures.

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: Positive
• Last Price: 73.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOLV, the sentiment is Positive. The current price of 73.2 is above the 20-day moving average (MA) of 73.01, below the 50-day MA of 74.11, and above the 200-day MA of 72.23, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 49.72 is Neutral, neither overbought nor oversold. The STOCH value of 56.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOLV.

Solventum Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	77 Outperform	$11.37B	9.41	18.66%	0.45%	9.61%	39.65%
EHC	73 Outperform	$12.05B	23.39	25.35%	0.56%	11.80%	30.02%
THC	70 Outperform	$15.23B	11.03	41.09%	―	-1.09%	-43.10%
FMS	66 Neutral	$14.55B	20.27	4.72%	3.16%	1.11%	25.84%
DVA	61 Neutral	$9.61B	13.21	635.30%	―	5.09%	7.85%
SOLV	57 Neutral	$12.69B	33.72	11.64%	―	2.46%	-64.37%
Sector *	56 Neutral	$6.72B	7.71	-9.67%	6.24%	14.66%	-12.03%

Solventum Corporation Corporate Events

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.

Solventum Amends Acquisition Deal with Thermo Fisher

On June 25, 2025, Solventum Corporation and Thermo Fisher Scientific Inc. amended their transaction agreement to exclude Solventum’s drinking water filtration business from the acquisition, reducing the purchase price to approximately $4.00 billion. This amendment is expected to simplify the transaction and potentially accelerate its completion by the end of 2025, while retaining the Water Business could enhance Solventum’s earnings per share but may impact projected margin improvements.

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.