Solventum Corporation (SOLV) AI Stock Analysis

• Market Cap: $14.15B
• Dividend Yield: N/A
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.59
• Revenue Growth: 2.53%
• EPS Growth: 109.91%
• Country: US
• Employees: 22,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.50
• Shares Outstanding: 173,447,560
• 10 Day Avg. Volume: 1,361,862
• 30 Day Avg. Volume: 1,193,627
• PEG Ratio: -0.37
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 14.21
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 6.25
• 1Y Price Target: $91.29
• Price Target Upside: 13.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 6.02
• Revenue Forecast (FY): $8.25B

• Rating: 73 Outperform
• Price Target: $90.00 ▲(11.41% Upside)

Solventum Corporation's overall stock score reflects strong earnings call highlights, including increased guidance and strategic initiatives, which are the most significant factors. The company's financial performance shows robust growth but faces cash flow challenges. Technical analysis supports a positive outlook, while valuation suggests the stock is undervalued, offering potential for appreciation.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates successful business expansion and increasing market demand for Solventum's products, supporting long-term growth prospects.

Debt Reduction

Significant debt reduction enhances financial flexibility, allowing Solventum to pursue strategic investments and acquisitions, strengthening its market position.

Strategic Acquisition

The acquisition of Acera Surgical expands Solventum's product offerings in regenerative wound care, leveraging synergies and enhancing market presence in the healthcare sector.

Negative Factors

Cash Flow Challenges

Declining free cash flow indicates potential liquidity issues, which could constrain Solventum's ability to invest in growth opportunities and manage operational expenses.

Tariff Headwinds

Ongoing tariff impacts can pressure margins, potentially reducing profitability and affecting Solventum's competitive pricing strategy in global markets.

Operational Cost Increases

Rising operational costs may erode profit margins, challenging Solventum's ability to maintain profitability and necessitating efficiency improvements.

Solventum Corporation Business Overview & Revenue Model

Company Description

Solventum Corporation (SOLV) is a leading provider of innovative chemical solutions, specializing in the development and production of high-performance solvents and specialty chemicals for various industries, including pharmaceuticals, petrochemicals, and consumer products. The company focuses on sustainability and environmental responsibility, offering eco-friendly alternatives to traditional solvents. With a robust research and development team, Solventum is committed to advancing technology and creating customized solutions that meet the specific needs of its clients.

How the Company Makes Money

Solventum Corporation generates revenue primarily through the sale of its specialty chemicals and solvents to various sectors, including pharmaceuticals, automotive, and manufacturing. The company employs a direct sales model, establishing long-term relationships with customers who require tailored chemical solutions. Key revenue streams include bulk sales of solvents, licensing of proprietary technology, and consulting services for chemical applications. Additionally, Solventum benefits from strategic partnerships with industry leaders, allowing for collaborative product development and expanded market reach, which further enhances its earnings potential.

Solventum Corporation Financial Statement Overview

Summary

Solventum Corporation demonstrates strong revenue growth and improved profitability, with a notable increase in net profit margins. The balance sheet shows improved leverage, but cash flow metrics indicate potential liquidity challenges. Overall, the company is on a positive growth trajectory but needs to address cash flow issues to sustain long-term financial health.

Income Statement

Solventum Corporation shows a strong revenue growth rate of 16.7% in the TTM, indicating robust business expansion. The gross profit margin remains healthy at 54.1%, although slightly lower than previous years. The net profit margin improved significantly to 18.1% from 5.8% last year, reflecting enhanced profitability. However, the EBIT margin has decreased, suggesting increased operational costs or other expenses impacting earnings before interest and taxes.

Balance Sheet

The company's debt-to-equity ratio improved to 1.03 in the TTM from 2.77 last year, indicating better leverage management. Return on equity is strong at 41.0%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Free cash flow has declined significantly by 66% in the TTM, raising concerns about cash generation. The operating cash flow to net income ratio is low at 0.17, indicating potential challenges in converting income into cash. The free cash flow to net income ratio also decreased, suggesting reduced cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.40B	8.25B	8.20B	8.13B	8.17B
Gross Profit	4.58B	4.59B	4.69B	4.70B	4.92B
EBITDA	2.59B	1.53B	2.23B	2.27B	2.48B
Net Income	1.52B	479.00M	1.35B	1.34B	1.46B
Balance Sheet
Total Assets	13.97B	14.46B	13.94B	13.59B	14.07B
Cash, Cash Equivalents and Short-Term Investments	1.64B	762.00M	194.00M	61.00M	91.00M
Total Debt	5.14B	8.01B	8.30B	0.00	0.00
Total Liabilities	8.99B	11.50B	2.28B	1.85B	2.02B
Stockholders Equity	4.99B	2.96B	11.67B	11.74B	12.06B
Cash Flow
Free Cash Flow	50.00M	805.00M	1.63B	1.43B	1.93B
Operating Cash Flow	493.00M	1.19B	1.92B	1.68B	2.20B
Investing Cash Flow	3.42B	-380.00M	-230.00M	-253.00M	-278.00M
Financing Cash Flow	-3.05B	-240.00M	-1.55B	-1.46B	-1.96B

Solventum Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 80.78 is below the 20-day moving average (MA) of 83.13, above the 50-day MA of 76.78, and above the 200-day MA of 73.51, indicating a neutral trend. The MACD of 0.94 indicates Positive momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 27.91 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	74 Outperform	$14.21B	10.81	19.97%	0.35%	10.21%	39.58%
THC	74 Outperform	$17.25B	13.70	34.51%	―	-0.56%	-53.50%
SOLV	73 Outperform	$14.15B	9.30	37.25%	―	2.53%	109.91%
FMS	65 Neutral	$13.80B	17.06	5.31%	3.29%	4.09%	13.17%
EHC	64 Neutral	$10.70B	20.11	24.94%	0.65%	11.13%	27.53%
DVA	59 Neutral	$8.13B	12.00	―	―	5.14%	4.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Solventum Corporation Corporate Events

Solventum Corporation Reflects on Transformative Year

On December 16, 2025, Solventum Corporation reflected on a transformative year, highlighting significant progress as a standalone public company. The company launched a long-range plan prioritizing growth drivers, achieved six consecutive quarters of positive volume growth, and outperformed financial expectations. Solventum’s commercial restructuring and enhancements led to strong results in MedSurg and Dental Solutions, while its Health Information Systems maintained a leading position in AI-powered healthcare. The company also focused on sustainable margin expansion through its ‘Transform for the Future’ initiative, which includes operational efficiencies and supply chain separation. Strategic transformations included the sale of its Purification & Filtration business and the acquisition of Acera Surgical, alongside a $1 billion share repurchase program. These efforts are supported by a dedicated global team, contributing to Solventum’s recognition and confidence in its long-term potential.

Solventum Appoints Heather Knight as Chief Commercial Officer

On October 21, 2025, Solventum Corporation announced the appointment of Heather Knight as Chief Commercial Officer, effective November 10, 2025. Knight, with over 30 years of MedTech industry experience, will oversee global commercial and R&D operations, reporting to CEO Bryan Hanson. Concurrently, Chris Barry, Executive Vice President and Group President of MedSurg, will leave the company on December 31, 2025, receiving severance benefits under the company’s Executive Severance Plan.