Solventum Corporation (SOLV) AI Stock Analysis

• Market Cap: $14.84B
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.58
• 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: 1,105,294
• 30 Day Avg. Volume: 1,019,425
• 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: 1.10
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 6.29
• 1Y Price Target: $89.38
• Price Target Upside: 4.46% 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: $89.00 ▲(4.02% Upside)

Solventum Corporation's strong financial performance, particularly in revenue growth and profitability, combined with an attractive valuation, are the primary drivers of the stock's score. Technical indicators suggest a strong upward trend, though caution is advised due to overbought conditions. The positive earnings call further supports the company's growth trajectory, but potential risks from tariff impacts and cash flow challenges should be monitored.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective sales strategies, positioning Solventum for sustained expansion.

Debt Reduction

Significant debt reduction enhances financial flexibility, allowing for strategic investments and acquisitions to drive future growth.

Operational Efficiency

The initiative to improve cost structure and efficiency supports long-term profitability and competitive positioning.

Negative Factors

Cash Flow Challenges

Declining cash flow limits Solventum's ability to invest in growth and manage liabilities, posing a risk to financial stability.

Tariff Headwinds

Ongoing tariff impacts can erode margins, affecting profitability and potentially leading to higher costs for customers.

Segment Performance Variability

Flat performance in key segments may hinder overall growth, highlighting the need for diversification and innovation.

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 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: 85.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 85.56 is above the 20-day moving average (MA) of 76.53, above the 50-day MA of 73.79, and above the 200-day MA of 73.16, indicating a bullish trend. The MACD of 3.70 indicates Negative momentum. The RSI at 80.94 is Negative, neither overbought nor oversold. The STOCH value of 87.79 is Negative, 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	78 Outperform	$15.23B	11.38	19.97%	0.33%	10.21%	39.58%
SOLV	73 Outperform	$14.84B	9.85	37.25%	―	2.53%	109.91%
THC	72 Outperform	$18.91B	14.75	34.51%	―	-0.56%	-53.50%
FMS	65 Neutral	$13.90B	17.42	5.31%	3.33%	4.09%	13.17%
EHC	62 Neutral	$11.69B	21.96	24.94%	0.55%	11.13%	27.53%
DVA	58 Neutral	$8.42B	12.28	―	―	5.14%	4.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Solventum Corporation Corporate Events

Solventum’s Earnings Call Highlights Growth and Optimism

Solventum Corporation’s recent earnings call painted a largely positive picture, with strong sales growth, successful portfolio optimization, and a transformed balance sheet setting the stage for future growth and acquisitions. Despite some challenges, such as tariff headwinds and segment-specific issues, the overall sentiment was optimistic, with highlights significantly outweighing the lowlights.

Solventum Corporation Reports Strong Q3 2025 Results

Solventum Corporation is a healthcare company that specializes in providing innovative solutions at the intersection of health, material, and data science, aimed at improving patient outcomes and empowering healthcare professionals. The company operates primarily in the healthcare sector, offering products and services across segments such as MedSurg, Dental Solutions, and Health Information Systems.

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.

The most recent analyst rating on (SOLV) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Solventum Corporation stock, see the SOLV Stock Forecast page.

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.