Buy or Sell Solventum Stock?

January 14th, 2026 by Trefis Team
SOLV: Solventum logo
SOLV
Solventum

Solventum (SOLV) stock has fallen 6.6% during the past day, and is currently trading at $80.03. We believe there are a few things to fear in SOLV stock given its overall Weak operating performance and financial condition. This is aligned with the stock’s Low valuation because of which we think it is Fairly Priced.

Below is our assessment:

  CONCLUSION
What you pay:
Valuation Low
What you get:
Growth Weak
Profitability Weak
Financial Stability Strong
Downturn Resilience N/A
Operating Performance Weak
 
Stock Opinion Fairly Priced

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Let’s get into details of each of the assessed factors but before that, for quick background: With $14 Bil in market cap, Solventum provides healthcare solutions through development, manufacturing, and commercialization to address critical customer and patient needs.

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[1] Valuation Looks Low

  SOLV S&P 500
Price-to-Sales Ratio 1.7 3.3
Price-to-Earnings Ratio 9.1 24.1
Price-to-Free Cash Flow Ratio 278.8 21.5

This table highlights how SOLV is valued vs broader market. For more details see: SOLV Valuation Ratios

[2] Growth Is Weak

  • Solventum has seen its top line grow at an average rate of 1.4% over the last 3 years
  • Its revenues have grown 2.3% from $8.2 Bil to $8.4 Bil in the last 12 months
  • Also, its quarterly revenues grew 0.7% to $2.1 Bil in the most recent quarter from $2.1 Bil a year ago.

  SOLV S&P 500
3-Year Average 1.4% 5.6%
Latest Twelve Months* 2.3% 6.4%
Most Recent Quarter (YoY)* 0.7% 7.3%

This table highlights how SOLV is growing vs broader market. For more details see: SOLV Revenue Comparison

[3] Profitability Appears Weak

  • SOLV last 12 month operating income was $674 Mil representing operating margin of 8.0%
  • With cash flow margin of 5.9%, it generated nearly $493 Mil in operating cash flow over this period
  • For the same period, SOLV generated nearly $1.5 Bil in net income, suggesting net margin of about 18.1%

  SOLV S&P 500
Current Operating Margin 8.0% 18.8%
Current OCF Margin 5.9% 20.5%
Current Net Income Margin 18.1% 13.1%

This table highlights how SOLV profitability vs broader market. For more details see: SOLV Operating Income Comparison

[4] Financial Stability Looks Strong

  • SOLV Debt was $5.1 Bil at the end of the most recent quarter, while its current Market Cap is $14 Bil. This implies Debt-to-Equity Ratio of 36.8%
  • SOLV Cash (including cash equivalents) makes up $1.6 Bil of $14 Bil in total Assets. This yields a Cash-to-Assets Ratio of 11.8%

  SOLV S&P 500
Current Debt-to-Equity Ratio 36.8% 19.9%
Current Cash-to-Assets Ratio 11.8% 7.2%

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