A Business at a Glance
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Solventum Corp
SOLV
$13.7B
Mkt Cap
$78.01
+1.00%
Solventum Corp (SOLV) has a current P/E ratio of 8.8, compared to its historical median P/E of 16.6. The stock is currently considered Cheap based on its historical valuation range.
Solventum Corp (SOLV) has a 5-year average return on invested capital (ROIC) of 13.1%. This indicates solid capital allocation.
Solventum Corp (SOLV) has a market capitalization of $13.5B. It is classified as a large-cap stock.
Solventum Corp (SOLV) does not currently pay a regular dividend.
Based on historical P/E analysis, Solventum Corp (SOLV) appears cheap. The current P/E of 8.8 is 47% below its historical median of 16.6. The estimated fair value CAGR (P/E method) is -5.1%.
Solventum Corp (SOLV) operates in the Surgical & Medical Instruments & Apparatus industry, within the Healthcare sector.
Solventum Corp (SOLV) reported annual revenue of $8.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Solventum is a leading global healthcare company with a 70+ year history developing, manufacturing, and commercializing a broad portfolio of solutions leveraging material science, data science, and digital capabilities across the patient journey from prevention through recovery. The company operates three reportable segments: MedSurg (57.9% of 2025 sales), providing negative pressure wound therapy, advanced wound dressings, surgical supplies, sterilization assurance, temperature management, and medical technologies; Dental Solutions (16.2% of 2025 sales), offering brackets, aligners, restorative cements, and orthodontic products spanning preventative care through restoration; and Health Information Systems (16.3% of 2025 sales), delivering software solutions for revenue cycle management, physician documentation, coding automation, and data visualization to healthcare systems. The business model is characterized by strong customer relationships with multidisciplinary hospitals and local clinics, a broad portfolio of well-known brands, differentiated technology, and manufacturing expertise, with approximately 20,000 employees globally including 2,000 R&D personnel. Solventum competes in highly competitive markets across advanced wound care, infection prevention, surgical supplies, dental and orthodontic products, and healthcare IT, facing multinational competitors including Smith & Nephew, Dentsply Sirona, Envista, and Optum, while maintaining competitive advantages through clinical differentiation, customer insights, and manufacturing capabilities.
【Transformation and growth acceleration】 Management expects close to 20 new product launches over the next two years, with a meaningful portion in growth driver areas including negative pressure wound therapy, IV site management, and sterilization assurance, supported by a restructured commercial team. The Transform for the Future multi-year $500 million savings program is designed to free up resources for long-term investment while the company pursues a target-rich environment for tuck-in acquisitions under $1 billion, with Acera serving as the beginning of this strategy. Operating margins are expected to expand 50–100 basis points in 2026 despite tariff headwinds of $100–$120 million annually, driven by sales leverage, programmatic supply chain savings, and the Transform for the Future program, with separation costs stepping down significantly in 2027. The company remains confident in reaching its long-range plan targets of 4%–5% organic sales growth faster than previously expected, supported by continued commercial execution, innovation momentum, and portfolio optimization.
| Metric | Target | Period |
|---|---|---|
| Organic sales growth | 2%-3% | FY2026 |
| Tariff headwind | $100 million-$120 million | FY2026 |
| Free cash flow | approximately $200 million | FY2026 |
| Earnings per share | $6.40-$6.60 | FY2026 |
Organic sales growth (FY2026): “Starting with our top line, we are guiding to an organic sales growth range of 2%-3%.”
Tariff headwind (FY2026): “Regarding tariffs in place before last week's Supreme Court ruling, we estimate full year impact of $100 million-$120 million.”
Free cash flow (FY2026): “For free cash flow, we are expecting approximately $200 million in 2026.”
Earnings per share (FY2026): “we now estimate that our earnings per share will be toward the high end of our initial $6.40-$6.60 range.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|
| Revenue | 8.3B | 8.3B | 8.3B | 8.2B | 8.1B |
| Net Income | 1.4B | 1.6B | 479M | 1.3B | 1.3B |
| EPS | $8.26 | $8.88 | $2.76 | $7.79 | $7.78 |
| Free Cash Flow | -203M | -10M | 805M | 1.6B | 1.4B |
| ROIC | 18.8% | 20.2% | 7.5% | 11.8% | - |
| Gross Margin | 53.7% | 53.5% | 55.6% | 57.3% | 57.7% |
| Debt/Equity | 1.02 | 1.04 | 2.77 | 0.01 | - |
| Dividends/Share | $0.00 | - | - | - | - |
| Operating Income | 2.1B | 2.2B | 1.0B | 1.7B | 1.7B |
| Operating Margin | 25.5% | 26.2% | 12.6% | 20.6% | 20.8% |
| ROE | 28.8% | 38.9% | 6.6% | 11.5% | - |
| Shares Outstanding | 174M | 175M | 174M | 173M | 173M |
| Metric | 2022 | ||||
|---|---|---|---|---|---|
| Income Statement | |||||
| Revenue | 8.1B | 8.2B | 8.3B | 8.3B | 8.3B |
| Gross Margin | 57.7% | 57.3% | 55.6% | 53.5% | 53.7% |
| R&D | 767M | 758M | 775M | 739M | 735M |
| SG&A | 2.2B | 2.3B | 2.8B | 3.1B | 3.1B |
| EBIT | 1.7B | 1.7B | 1.0B | 2.2B | 2.1B |
| Op. Margin | 20.8% | 20.6% | 12.6% | 26.2% | 25.5% |
| Net Income | 1.3B | 1.3B | 479M | 1.6B | 1.4B |
| Net Margin | 16.5% | 16.4% | 5.8% | 18.7% | 17.3% |
| Non-Recurring | 0 | 56M | 62M | 1.5B | 1.5B |
| Returns on Capital | |||||
| ROIC | N/A | 11.8% | 7.5% | 20.2% | 18.8% |
| ROE | N/A | 11.5% | 6.6% | 38.9% | 28.8% |
| ROA | N/A | 18.8% | 3.4% | 10.8% | 10.2% |
| Cash Flow | |||||
| Op. Cash Flow | 1.7B | 1.9B | 1.2B | 369M | 151M |
| Free Cash Flow | 1.4B | 1.6B | 805M | -10M | -203M |
| Owner Earnings | 1.1B | 1.3B | 518M | -281M | -507M |
| CapEx | 251M | 290M | 380M | 379M | 354M |
| Maint. CapEx | 578M | 561M | 555M | 489M | 495M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 |
| D&A | 578M | 561M | 555M | 489M | 495M |
| CapEx/OCF | N/A | N/A | 32.1% | 102.7% | 234.4% |
| Capital Allocation | |||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 37M | 39M | 112M | 161M | 163M |
| Debt Repayment | 0 | 0 | 300M | 3.1B | 3.1B |
| Balance Sheet | |||||
| Net Debt | N/A | -96M | 7.4B | 4.4B | 4.5B |
| Cash & Equiv. | 61M | 194M | 762M | 878M | 561M |
| Long-Term Debt | N/A | 0 | 7.8B | 5.0B | 4.6B |
| Debt/Equity | N/A | 0.01 | 2.77 | 1.04 | 1.02 |
| Interest Coverage | 434.1 | 225.6 | 1036.0 | 21810.0 | 21810.0 |
| Equity | N/A | 11.7B | 3.0B | 5.0B | 5.0B |
| Total Assets | N/A | 13.9B | 14.5B | 14.3B | 14.1B |
| Total Liabilities | N/A | 2.3B | 11.5B | 9.2B | 9.1B |
| Intangibles | N/A | 2.9B | 2.5B | 2.6B | 2.5B |
| Retained Earnings | N/A | 0 | 242M | 1.8B | 1.8B |
| Working Capital | N/A | 791M | 546M | 723M | 237M |
| Current Assets | N/A | 2.5B | 3.2B | 3.9B | 3.6B |
| Current Liabilities | N/A | 1.7B | 2.7B | 3.1B | 3.3B |
| Per Share Data | |||||
| EPS | 7.78 | 7.79 | 2.76 | 8.88 | 8.26 |
| Owner EPS | 6.16 | 7.61 | 2.98 | -1.60 | -2.92 |
| Book Value | N/A | 67.52 | 17.05 | 28.81 | 28.63 |
| Cash Flow/Share | 9.73 | 11.08 | 6.83 | 2.11 | 11.10 |
| Dividends/Share | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 172.6M | 172.8M | 173.6M | 175.2M | 173.5M |
| Valuation | |||||
| P/E Ratio | N/A | N/A | 24.2 | 9.1 | 9.4 |
| P/FCF | N/A | N/A | 14.4 | N/A | N/A |
| EV/EBIT | N/A | N/A | 17.6 | 8.0 | 8.6 |
| Price/Book | N/A | N/A | 3.9 | 2.8 | 2.7 |
| Price/Sales | N/A | N/A | 1.3 | 1.6 | 1.6 |
| FCF Yield | N/A | N/A | 6.9% | -0.1% | -1.5% |
| Market Cap | 0 | N/A | 11.6B | 14.1B | 13.5B |
| Avg. Price | 0.00 | N/A | 63.78 | 73.67 | 78.01 |
| Year-End Price | 0.00 | N/A | 66.74 | 80.46 | 78.01 |
Solventum Corp passes 4 of 9 quality checks, suggesting mixed fundamentals.
Solventum Corp trades at 8.8x trailing earnings, compared to its 15-year median P/E of 16.6x, suggesting it is currently Cheap relative to its historical range. The company's 5-year average ROIC is 13.1% with a gross margin of 56.0%. At current prices, the estimated annualized return to fair value is -49.8%.
Solventum Corp (SOLV) has a net profit margin of 18.7%. This is a healthy margin.
Solventum Corp (SOLV) generated $-10 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
Solventum Corp (SOLV) has a debt-to-equity ratio of 1.04. This indicates moderate leverage.
Solventum Corp (SOLV) reported earnings per share (EPS) of $8.88 in its most recent fiscal year.
Solventum Corp (SOLV) has a return on equity (ROE) of 38.9%. This indicates the company generates strong returns for shareholders.
Solventum Corp (SOLV) has a 5-year average gross margin of 56.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 4 years of financial data for Solventum Corp (SOLV), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Solventum Corp (SOLV) has a book value per share of $28.81, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects close to 20 new product launches over the next two years, with a meaningful portion in growth driver areas including negative pressure wound therapy, IV site management, and sterilization assurance, supported by a restructured commercial team. The Transform for the Future multi-year $500 million savings program is designed to free up resources for long-term investment while the company pursues a target-rich environment for tuck-in acquisitions under $1 billion, with Acera serving as the beginning of this strategy. Operating margins are expected to expand 50–100 basis points in 2026 despite tariff headwinds of $100–$120 million annually, driven by sales leverage, programmatic supply chain savings, and the Transform for the Future program, with separation costs stepping down significantly in 2027. The company remains confident in reaching its long-range plan targets of 4%–5% organic sales growth faster than previously expected, supported by continued commercial execution, innovation momentum, and portfolio optimization.
Based on recent SEC filings and earnings calls, Solventum Corp (SOLV) has provided the following forward guidance: Organic sales growth: 2%-3% (FY2026); Tariff headwind: $100 million-$120 million (FY2026); Free cash flow: approximately $200 million (FY2026); Earnings per share: $6.40-$6.60 (FY2026).