Solventum Corporation (SOLV) 10-Year Financial Performance & Capital Metrics

SOLV • • Industrial / General

HealthcareHealthcare FacilitiesMedical Equipment & Technology ServicesMedical Products & Supplies

AboutSolventum 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.Show more

Revenue $8.25B +0.7%
EBITDA $1.59B -29.4%
Net Income $479M -64.4%
EPS (Diluted) 2.76 -64.6%
Gross Margin 55.65% -2.8%
EBITDA Margin 19.28% -29.9%
Operating Margin 12.55% -39.2%
Net Margin 5.8% -64.7%
ROE 6.55% -43.0%
ROIC 5.18% -35.8%
Debt/Equity 2.71 +280.3%
Interest Coverage 2.82

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓High quality earnings: Operating CF exceeds net income
✓Healthy 5Y average net margin of 14.2%

✗Weaknesses

✗High debt to equity ratio of 2.7x

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-

5Y-

3Y0.34%

TTM1.55%

Profit (Net Income) CAGR

10Y-

5Y-

3Y-31.03%

TTM192.51%

EPS CAGR

10Y-

5Y-

3Y-31.19%

TTM236.82%

ROCE

10Y Avg12.71%

5Y Avg12.71%

3Y Avg12.01%

Latest8.64%

Peer Comparison

Medical Products & Supplies

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
SOLVSolventum Corporation	13.95B	80.44	29.14	0.7%	18.14%	30.57%	5.77%	2.71

Profit & Loss

	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	8.17B	8.13B	8.2B	8.25B
Revenue Growth %	-	-0.01%	0.01%	0.01%
Cost of Goods Sold+	3.25B	3.44B	3.5B	3.66B
COGS % of Revenue	0.4%	0.42%	0.43%	0.44%
Gross Profit+	4.92B	4.7B	4.69B	4.59B
Gross Margin %	0.6%	0.58%	0.57%	0.56%
Gross Profit Growth %	-	-0.05%	-0%	-0.02%
Operating Expenses+	3.04B	3B	3B	3.56B
OpEx % of Revenue	0.37%	0.37%	0.37%	0.43%
Selling, General & Admin	2.28B	2.23B	2.24B	2.78B
SG&A % of Revenue	0.28%	0.27%	0.27%	0.34%
Research & Development	766M	767M	758M	775M
R&D % of Revenue	0.09%	0.09%	0.09%	0.09%
Other Operating Expenses	0	0	0	0
Operating Income+	1.88B	1.69B	1.69B	1.04B
Operating Margin %	0.23%	0.21%	0.21%	0.13%
Operating Income Growth %	-	-0.1%	-0%	-0.39%
EBITDA+	2.48B	2.27B	2.25B	1.59B
EBITDA Margin %	0.3%	0.28%	0.27%	0.19%
EBITDA Growth %	-	-0.08%	-0.01%	-0.29%
D&A (Non-Cash Add-back)	597M	578M	561M	555M
EBIT	1.88B	1.69B	1.67B	972M
Net Interest Income+	0	0	0	-367M
Interest Income	0	0	0	0
Interest Expense	0	0	0	367M
Other Income/Expense	3M	-1M	-25M	-431M
Pretax Income+	1.88B	1.69B	1.67B	605M
Pretax Margin %	0.23%	0.21%	0.2%	0.07%
Income Tax+	422M	349M	321M	127M
Effective Tax Rate %	0.78%	0.79%	0.81%	0.79%
Net Income+	1.46B	1.34B	1.35B	479M
Net Margin %	0.18%	0.17%	0.16%	0.06%
Net Income Growth %	-	-0.08%	0%	-0.64%
Net Income (Continuing)	1.46B	1.34B	1.35B	478M
Discontinued Operations	0	0	0	0
Minority Interest	0	0	0	0
EPS (Diluted)+	8.47	7.79	7.79	2.76
EPS Growth %	-	-0.08%	0%	-0.65%
EPS (Basic)	8.47	7.79	7.79	2.77
Diluted Shares Outstanding	172.47M	172.47M	172.71M	173.7M
Basic Shares Outstanding	172.47M	172.47M	172.71M	173.2M
Dividend Payout Ratio	-	-	-	-

Balance Sheet

	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	2.19B	2.23B	2.52B	3.25B
Cash & Short-Term Investments	91M	61M	194M	762M
Cash Only	91M	61M	194M	762M
Short-Term Investments	0	0	0	0
Accounts Receivable	1.18B	1.17B	1.31B	1.23B
Days Sales Outstanding	52.58	52.57	58.47	54.35
Inventory	813M	873M	857M	965M
Days Inventory Outstanding	91.36	92.76	89.27	96.21
Other Current Assets	108M	126M	155M	293M
Total Non-Current Assets+	11.89B	11.36B	11.42B	11.21B
Property, Plant & Equipment	1.31B	1.32B	1.46B	1.62B
Fixed Asset Turnover	6.26x	6.16x	5.63x	5.09x
Goodwill	6.67B	6.43B	6.54B	6.38B
Intangible Assets	3.66B	3.25B	2.9B	2.54B
Long-Term Investments	0	0	0	0
Other Non-Current Assets	253M	358M	530M	665M
Total Assets+	14.07B	13.59B	13.94B	14.46B
Asset Turnover	0.58x	0.60x	0.59x	0.57x
Asset Growth %	-	-0.03%	0.03%	0.04%
Total Current Liabilities+	1.41B	1.31B	1.73B	2.7B
Accounts Payable	320M	348M	477M	618M
Days Payables Outstanding	35.96	36.98	49.69	61.61
Short-Term Debt	0	0	0	200M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K
Other Current Liabilities	323M	236M	365M	659M
Current Ratio	1.56x	1.70x	1.46x	1.20x
Quick Ratio	0.98x	1.04x	0.96x	0.84x
Cash Conversion Cycle	107.98	108.36	98.05	88.94
Total Non-Current Liabilities+	610M	541M	549M	8.79B
Long-Term Debt	0	0	8.3B	7.81B
Capital Lease Obligations	0	0	0	0
Deferred Tax Liabilities	218M	215M	231M	225M
Other Non-Current Liabilities	392M	326M	-7.99B	760M
Total Liabilities	2.02B	1.85B	2.28B	11.5B
Total Debt+	0	0	8.3B	8.01B
Net Debt	-91M	-61M	8.11B	7.25B
Debt / Equity	-	-	0.71x	2.71x
Debt / EBITDA	-	-	3.69x	5.03x
Net Debt / EBITDA	-0.04x	-0.03x	3.60x	4.56x
Interest Coverage	-	-	-	2.82x
Total Equity+	12.06B	11.74B	11.67B	2.96B
Equity Growth %	-	-0.03%	-0.01%	-0.75%
Book Value per Share	69.92	68.08	67.55	17.04
Total Shareholders' Equity	12.06B	11.74B	11.67B	2.96B
Common Stock	0	0	0	2M
Retained Earnings	0	0	0	242M
Treasury Stock	0	0	0	0
Accumulated OCI	-200M	-497M	-337M	-1.06B
Minority Interest	0	0	0	0

Cash Flow

	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	2.2B	1.68B	1.92B	1.19B
Operating CF Margin %	0.27%	0.21%	0.23%	0.14%
Operating CF Growth %	-	-0.24%	0.14%	-0.38%
Net Income	1.46B	1.34B	1.35B	479M
Depreciation & Amortization	597M	578M	561M	555M
Stock-Based Compensation	38M	37M	39M	112M
Deferred Taxes	-34M	-141M	-142M	-155M
Other Non-Cash Items	74M	64M	-15M	34M
Working Capital Changes	67M	-202M	126M	160M
Change in Receivables	-1M	-32M	-129M	276M
Change in Inventory	-136M	-82M	23M	-132M
Change in Payables	68M	25M	105M	266M
Cash from Investing+	-278M	-253M	-230M	-380M
Capital Expenditures	-277M	-251M	-290M	-380M
CapEx % of Revenue	0.03%	0.03%	0.04%	0.05%
Acquisitions	-	-	-	-
Investments	-	-	-	-
Other Investing	-1M	-2M	0	0
Cash from Financing+	-1.96B	-1.46B	-1.55B	-240M
Debt Issued (Net)	-	-	-	-
Equity Issued (Net)	-	-	-	-
Dividends Paid	0	0	0	0
Share Repurchases	-	-	-	-
Other Financing	-1.96B	-1.46B	-1.55B	-8.24B
Net Change in Cash	-	-	-	-
Free Cash Flow+	1.93B	1.43B	1.63B	805M
FCF Margin %	0.24%	0.18%	0.2%	0.1%
FCF Growth %	-	-0.26%	0.14%	-0.5%
FCF per Share	11.16	8.28	9.41	4.63
FCF Conversion (FCF/Net Income)	1.51x	1.25x	1.42x	2.47x
Interest Paid	0	0	0	287M
Taxes Paid	0	0	0	244M

Key Ratios

Metric	2021	2022	2023	2024
Return on Equity (ROE)	12.11%	11.29%	11.5%	6.55%
Return on Invested Capital (ROIC)	11.78%	10.74%	8.07%	5.18%
Gross Margin	60.25%	57.75%	57.25%	55.65%
Net Margin	17.87%	16.52%	16.42%	5.8%
Debt / Equity	-	-	0.71x	2.71x
Interest Coverage	-	-	-	2.82x
FCF Conversion	1.51x	1.25x	1.42x	2.47x
Revenue Growth	-	-0.5%	0.82%	0.7%

Revenue by Segment

	2024
Product	6.35B
Product Growth	-

Revenue by Geography

	2024
UNITED STATES	4.75B
UNITED STATES Growth	-
Non-US	3.5B
Non-US Growth	-

Frequently Asked Questions

Valuation & Price

Solventum Corporation (SOLV) has a price-to-earnings (P/E) ratio of 29.1x. This suggests investors expect higher future growth.

Growth & Financials

Solventum Corporation (SOLV) reported $8.40B in revenue for fiscal year 2024. This represents a 3% increase from $8.17B in 2021.

Solventum Corporation (SOLV) grew revenue by 0.7% over the past year. Growth has been modest.

Yes, Solventum Corporation (SOLV) is profitable, generating $1.52B in net income for fiscal year 2024 (5.8% net margin).

Dividend & Returns

Solventum Corporation (SOLV) has a return on equity (ROE) of 6.6%. This is below average, suggesting room for improvement.

Solventum Corporation (SOLV) generated $50.0M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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