Solventum Corp
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Solventum Corp AI Insights
Informational only. Not investment advice.Snapshot
- Tangible book value is NEGATIVE (-2.5B) with goodwill at 5.3B (106% of equity) - significant impairment risk if growth stalls[Goodwill]
- FCF TTM collapsed to 50M (0.6% margin) despite 1.5B net income - 443M capex and working capital consuming cash[Free Cash Flow TTM]
- Interest expense of 403M TTM on 5.1B debt consumes 60% of operating income (675M) - limited financial flexibility[Interest Expense TTM]
Watch Triggers
- Free Cash Flow TTM: Exceeds 500M (10x current) — Validates operating model post-spinoff; current 50M FCF unsustainable for debt service
- Operating Margin TTM: Rises above 12% — Signals restructuring benefits flowing through; closes gap to 31% EBITDA margin
- Goodwill: Impairment charge announced — 5.3B goodwill exceeds equity; any writedown destroys book value
Bull Case
ROE of 37% and ROIC of 14% TTM significantly exceed industry medians (both negative) - capital efficiency intact despite spinoff transition
Gross margin 54% TTM at industry median with 8.4B revenue base provides scale advantage for operating leverage as restructuring completes
Bear Case
P/E of 68x vs industry median 32x prices in substantial improvement; FCF yield under 0.4% offers no margin of safety
Debt/equity 1.03x with 403M annual interest creates refinancing risk; 1.4B unusual items inflated net income
Bull vs Bear Balance
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Forward Thesis
Margin expansion likely as spinoff costs normalize and 3.9B divestiture proceeds reduce debt burden
- Operating margin 8% vs 54% gross margin suggests cost rationalization opportunity
- 2.8B debt paydown in TTM period reduces interest drag
- R&D at 9% of revenue (763M) positions for product innovation
Valuation Context
Caveats
Public Strategies Rankings
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SOLV Fundamentals
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$11.18B | — | ||
$15.34B | — | ||
7.2 | — | ||
$8.32B | +0.9% | — | |
$8.88 | -53.7% | — | |
7.59% | -5.0% | — | |
18.7% | +12.9% | — | |
$-10.0M | — | ||
38.9% | +23.8% | — | |
Beta 5Y (Monthly) | unknown | — |
SOLV Dividend History
SOLV Stock Splits
SOLV SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
02/27/26 | 12/31/25 | Unknown | |
11/06/25 | 09/30/25 | 10-Q | |
08/08/25 | 06/30/25 | 10-Q | |
05/09/25 | 03/31/25 | 10-Q | |
02/28/25 | 12/31/24 | 10-K | |
11/08/24 | 09/30/24 | 10-Q | |
08/09/24 | 06/30/24 | 10-Q | |
05/10/24 | 03/31/24 | 10-Q | |
03/11/24 | 12/31/23 | 10-12B/A | |
02/09/24 | 09/30/23 | DRS/A | |
09/13/23 | 06/30/23 | DRS/A | |
05/10/24 | 03/31/23 | 10-Q | |
02/09/24 | 12/31/22 | DRS/A | |
09/30/22 | 09/30/22 | Unknown | -- |