# Solventum (SOLV.US)

Canonical: https://gigainvestors.com/s/SOLV

Analysis as of: 2026-10-16T07:32:02.176Z. Financial observations: FY2019–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Record still being completed

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $87.86 per share; close as of 2026-10-15.

Estimated value: low $108.17 per share, central $122.90 per share, high $142.50 per share. Buy at or below the central value $122.90 per share. Valuation as of 2026-10-16T07:32:02.176Z; scenarios are not confidence intervals.

Expected annual return: 13.0% at the stated quote. About 13.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 8 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.25×

- FY2020: 0.20×

- FY2021: 0.23×

- FY2022: 0.21×

- FY2023: 0.21×

- FY2024: 0.13×

- FY2025: 0.26×

- LTM to Jun 2026: 0.25×

### moat: pass

- ROIC, median of available years: 25.2%

- ROIC, second-lowest year: 21.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.6%

- ROIC including acquisitions, ten-year median: 14.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2021: 26.9%

- FY2022: 25.2%

- FY2023: 10.3%

- FY2024: 21.4%

- FY2025: 56.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.17×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $7.2B

- Net income, five-year total: $6.2B

- Working capital / revenue, annual change: -0.3 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.24×

- FY2023: 1.20×

- FY2024: 1.37×

- FY2025: 1.07×

- LTM to Jun 2026: 1.12×

### management: unclear

- buybacks unrelated to price (informational)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: 0.3%

- Buyback history: 0 years

- Debt-funded buybacks: No

- ROIC, last three-year median: 21.4%

Chart: Earnings per share; fiscal year observations.

- FY2020: $6.60

- FY2021: $8.47

- FY2022: $7.78

- FY2023: $7.79

- FY2024: $2.76

- FY2025: $8.88

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 8.3%

- Receivables to sales index (DSRI): 0.83×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 43.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.24×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.64×

Chart: Sloan accruals; fiscal year observations.

- FY2021: -5.3%

- FY2022: -2.5%

- FY2023: -4.1%

- FY2024: -4.9%

- FY2025: 8.3%

## Holders

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Nelson Peltz](https://gigainvestors.com/TF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to shrink 3.4% a year for ten years · sales -0.2%

Story as of 2026-10-16T09:59:36.818Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.4% a year for ten years

- 2025-08-07: Solventum raises annual profit forecast on strength in surgical equipment ([finance.yahoo.com](https://finance.yahoo.com/news/solventum-raises-annual-profit-forecast-205226276.html))

- 2025-11-07: Solventum (SOLV) Valuation in Focus Following Upgraded 2025 Earnings Guidance and Renewed Growth Confidence ([finance.yahoo.com](https://finance.yahoo.com/news/solventum-solv-valuation-focus-following-011305494.html))

- 2026-08-06: Solventum outlines HIS separation and raises 2026 EPS guide to $7.10-$7.20 ([seekingalpha.com](https://seekingalpha.com/news/4627097-solventum-outlines-his-separation-and-raises-2026-eps-guide-to-7_10-7_20?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales -0.2%; source https://www.sec.gov/Archives/edgar/data/1964738/000196473826000007/solv-20251231.htm; observed 2026-02-27.

- FY2019: $7.4B 

- FY2020: $7.3B 

- FY2021: $8.2B 

- FY2022: $8.1B 

- FY2023: $8.2B 

- FY2024: $8.3B 

- FY2025: $8.3B 

- FY2026: $8.3B 

### Gross margin · FY2025

gross margin 53.5%; source https://www.sec.gov/Archives/edgar/data/1964738/000196473826000007/solv-20251231.htm; observed 2026-02-27.

- FY2020: 59.3% 

- FY2021: 60.2% 

- FY2022: 57.7% 

- FY2023: 57.3% 

- FY2024: 55.6% 

- FY2025: 53.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical instruments & supplies; annual sales are USD 8.3 billion.

- Source: https://eodhd.com/api/fundamentals/SOLV.US.json#2025-12-31 (filed 2026-02-27); FY2025: revenue 8325000000; grossProfit 4451000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SOLV.US: Solventum Corporation, a healthcare company, develops, manufactures, and commercializes a portfolio of solutions to address critical customer and patient needs in the United States and internationally. It operates through three segments: Medsurg, Dental Solutions, and Health Information Systems. The Medsurg segment offers solutions, such as negative pressure wound therapy, advanced wound dressings, advanced skin care, synthetic tissue matrices, I.V. site management, sterilization assurance, temperature management, surgical supplies, medical tapes and wraps, stethoscopes, medical electrodes, and medical technologies for original equipment manufacturers. The Dental Solutions segment provides dental and orthodontic products, including brackets, aligners, restorative cements, and bonding agents to span the life of the tooth, and products for preventative dental care, direct and indirect restoration, and orthodontic needs. The Health Information Systems segment offers healthcare systems with software solutions comprising computer-assisted physician documentation, direct-to-bill and coding automation, classification methodologies, speech recognition, and data visualization platforms. The company sells its products and services through direct-to-consumer, distribution, key account management, inside sales, and e-commerce. Solventum Corporation was incorporated in 2023 and is headquartered in Eagan, Minnesota.

### Why customers stay

Margins ranged from 53.5% to 57.3% during 2023–25; it earns 25.2% on its capital.

- Source: https://eodhd.com/api/fundamentals/SOLV.US.json#2023-12-31 (filed 2026-02-27); FY2023: grossProfit / revenue = 57.3%.

- Source: https://eodhd.com/api/fundamentals/SOLV.US.json#2024-12-31 (filed 2026-02-27); FY2024: grossProfit / revenue = 55.6%.

- Source: https://eodhd.com/api/fundamentals/SOLV.US.json#2025-12-31 (filed 2026-02-27); FY2025: grossProfit / revenue = 53.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 7-year return on capital observations [[2021,0.26924135364409274],[2022,0.25155255245686753],[2023,0.1031862509673292],[2024,0.21371426105344926],[2025,0.5657072615998264]]; median 0.25155255245686753. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 41.8% of cash earnings; paid no dividends in 6 years.

- Source: https://eodhd.com/api/fundamentals/SOLV.US.json#2020-12-31 (filed 2026-02-27); FY2020: growth capex 0; upkeep 271000000; owner earnings 1466000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOLV.US.json#2021-12-31 (filed 2026-02-27); FY2021: growth capex 0; upkeep 277000000; owner earnings 1780000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOLV.US.json#2022-12-31 (filed 2026-02-27); FY2022: growth capex 0; upkeep 251000000; cash acquisitions 0; owner earnings 1670000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOLV.US.json#2023-12-31 (filed 2026-02-27); FY2023: growth capex 0; upkeep 290000000; cash acquisitions 0; owner earnings 1617000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOLV.US.json#2024-12-31 (filed 2026-02-27); FY2024: growth capex 0; upkeep 380000000; cash acquisitions 0; owner earnings 654000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOLV.US.json#2025-12-31 (filed 2026-02-27); FY2025: growth capex 0; upkeep 379000000; cash acquisitions 696000000; owner earnings 1666000000. Growth capex plus acquisitions / owner earnings = 0.4177671068427371.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 15.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SOLV.US SharesStats.PercentInsiders = 15.342 percentage points; cache date 2026-10-16.

### What could break it

"Following the Spin-Off, Solventum’s commercial relationships with 3M remain significant" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1964738/000196473826000007/solv-20251231.htm (filed 2026-02-27); Following the Spin-Off, Solventum’s commercial relationships with 3M remain significant

### What the price says

The price assumes cash profits shrink 3.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate -0.060285830155847375. Price 87.86; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2024-03: $69.55 per share

- 2024-04: $65.01 per share

- 2024-05: $59.34 per share

- 2024-06: $52.88 per share

- 2024-07: $58.88 per share

- 2024-08: $64.11 per share

- 2024-09: $69.72 per share

- 2024-10: $72.58 per share

- 2024-11: $71.51 per share

- 2024-12: $66.06 per share

- 2025-01: $74.06 per share

- 2025-02: $79.75 per share

- 2025-03: $76.04 per share

- 2025-04: $66.12 per share

- 2025-05: $73.09 per share

- 2025-06: $75.84 per share

- 2025-07: $71.36 per share

- 2025-08: $73.09 per share

- 2025-09: $73.00 per share

- 2025-10: $69.04 per share

- 2025-11: $85.26 per share

- 2025-12: $79.24 per share

- 2026-01: $76.97 per share

- 2026-02: $74.20 per share

- 2026-03: $65.30 per share

- 2026-04: $67.36 per share

- 2026-05: $74.95 per share

- 2026-06: $77.15 per share

- 2026-07: $85.44 per share

- 2026-08: $91.06 per share

- 2026-09: $88.15 per share

- 2026-10: $87.86 per share

## Annual estimated value (USD per share)

- FY2024: low $108.01 per share, central $122.43 per share, high $141.63 per share

- FY2025: low $107.94 per share, central $122.26 per share, high $141.33 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:47.329Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1964738/000196473826000007/solv-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.