Solventum Corporation (SOLV) AI Stock Analysis

• Market Cap: $13.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.61
• Revenue Growth: 1.28%
• EPS Growth: -70.82%
• Country: US
• Employees: 22,000
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Care Facilities
• EPS (TTM): 1.34
• Shares Outstanding: 173,012,920
• 10 Day Avg. Volume: 874,475
• 30 Day Avg. Volume: 1,005,805
• PEG Ratio: -1.28
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.66
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $84.17
• Price Target Upside: 7.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: $82.00 ▲(4.79%Upside)

Solventum Corporation shows strong performance in its earnings call with increased guidance and robust segment growth. However, financial performance is hindered by high leverage and declining cash flow. The technical analysis indicates positive momentum, while valuation suggests the stock might be overvalued. Tariff challenges could impact future profitability.

Positive Factors

Debt Reduction

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

Market Performance

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

Profit Margins

Retaining the Drinking Water Filtration business is expected to reduce projected improvements to gross margin and operating margin.

Tariffs

Tariff impacts are pressuring margins with adjusted operating margins expected at the low end of their range.

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 through a diversified model that includes the sale of electricity generated from its renewable energy assets, such as solar farms, wind turbines, and hydroelectric plants. Additionally, the company offers energy management services and consulting to optimize energy usage for its clients. Solventum also engages in strategic partnerships with government bodies and private enterprises to expand its reach and scale its operations, further contributing to its revenue streams. These partnerships often involve long-term power purchase agreements (PPAs) that provide stable and predictable income over time.

Solventum Corporation Financial Statement Overview

Summary

Solventum Corporation maintains solid profitability with stable revenue growth. However, increasing leverage and declining cash flow generation may pose risks to financial stability. The company should focus on improving operational efficiency and managing debt levels to enhance future financial performance.

Income Statement

Solventum Corporation shows strong gross and net profit margins, indicating effective cost management. However, there's a noticeable decline in both EBIT and EBITDA margins from prior periods, suggesting potential pressure on operational efficiency. Revenue growth is modest, pointing to stable but unspectacular sales performance.

Balance Sheet

The company exhibits a high debt-to-equity ratio, which could indicate significant leverage and potential financial risk. The return on equity is reasonable, reflecting moderate profitability relative to shareholder investment. The equity ratio remains stable, showcasing a balanced approach to asset financing.

Cash Flow

Solventum's free cash flow has decreased significantly, signaling potential challenges in generating cash from operations. The operating cash flow to net income ratio is healthy, indicating good cash conversion from profits. However, the decline in free cash flow growth rate suggests potential future liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.31B	8.25B	8.20B	8.13B	8.17B
Gross Profit	4.54B	4.59B	4.69B	4.70B	4.92B
EBITDA	1.20B	1.53B	2.04B	2.27B	2.48B
Net Income	378.00M	479.00M	1.35B	1.34B	1.46B
Balance Sheet
Total Assets	14.53B	14.46B	14.38B	13.59B	14.07B
Cash, Cash Equivalents and Short-Term Investments	534.00M	762.00M	600.00M	61.00M	91.00M
Total Debt	7.91B	8.01B	8.30B	95.00M	83.00M
Total Liabilities	11.27B	11.50B	10.97B	1.85B	2.02B
Stockholders Equity	3.26B	2.96B	3.41B	11.74B	12.06B
Cash Flow
Free Cash Flow	385.00M	805.00M	1.63B	1.43B	1.93B
Operating Cash Flow	772.00M	1.19B	1.92B	1.68B	2.20B
Investing Cash Flow	-392.00M	-380.00M	-230.00M	-253.00M	-278.00M
Financing Cash Flow	-841.00M	-240.00M	-1.55B	-1.46B	-1.96B

Solventum Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 78.25 is above the 20-day moving average (MA) of 75.02, above the 50-day MA of 72.26, and above the 200-day MA of 71.73, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 69.03 is Neutral, neither overbought nor oversold. The STOCH value of 90.78 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	77 Outperform	$11.89B	10.36	18.35%	0.43%	9.73%	51.87%
FMS	77 Outperform	$16.67B	24.95	4.36%	2.78%	-0.91%	27.17%
EHC	75 Outperform	$11.98B	24.54	25.33%	0.57%	11.21%	30.38%
THC	71 Outperform	$15.93B	11.34	38.12%	―	-1.79%	-41.85%
SOLV	70 Outperform	$13.58B	36.17	10.63%	―	1.28%	-70.82%
DVA	66 Neutral	$10.76B	14.11	260.92%	―	5.11%	14.28%
Sector *	57 Neutral	$5.79B	25.71	-31.22%	5.61%	10.88%	-29.73%

Solventum Corporation Corporate Events

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.