SOLVSolventum
Is the business good?
The checks split: nothing decisive, though thin cash backing (0.1×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
Margin-driven, fat margins on slower asset turns. ROE 30% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SOLV?
Solventum earns 17% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 8.3 points above what the capital costs: growth creates value
- Operating margin
- 25%
Operating margin · Medical Instruments & Supplies median 6.6% · 12 months to Q2 2026
- Cash conversion
- 0.12×
Cash conversion · 0.95× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −1.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2022 | 21% |
| FY2023 | 21% |
| FY2024 | 13% |
| FY2025 | 26% |
Details›
- Gross margin12 months to Q2 2026
- 55%
- Operating margin12 months to Q2 2026
- 25%
- Net margin12 months to Q2 2026
- 17%
- Free cash flow margin
- −1.4%
- R&D as % of revenue
- 8.7%
- Revenue, trailing twelve months
- $8.31B
- Free cash flow, trailing twelve months
- −$118M
- Net income, trailing twelve months
- $1.43B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 17%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Medical Instruments & Supplies
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