Solventum Corporation (SOLV)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I start with business quality. Solventum sells medical products across Medsurg, Dental Solutions, and Health Information Systems, categories with recurring demand and some switching costs. The numbers are mixed. FairStock calculations at the 2026-10-13 close show a P/E of 10.55, P/B of 3.06, ROE of 33.96%, and ROCE of only 2.70%. High ROE with low ROCE suggests leverage and accounting effects: debt-to-equity is 1.10. The Piotroski F-Score is a strong 8/9, but trailing free cash flow is negative $118.0 million and the FCF yield is -0.8%, so profits are not yet converting into owner cash. The FairStock Lynch category is SLOW GROWER, based on 5.0% annual profit growth and 0.8% revenue growth over three years. Filed results are lumpy: fiscal Q2 2026, ended 2026-06-30, had revenue $2.2B, net income $92.0M, and diluted EPS $0.53; fiscal Q1 2026 had net income $13.0M and diluted EPS $0.07; fiscal Q3 2025 had net income $1.3B and diluted EPS $7.22. Full-year FY2025 net income was $1.6B on revenue $8.3B, versus FY2024 net income $479.0M. Valuation is not distressed on earnings, but the Graham Number is $72.06 against an $86.30 price, a -19.76% margin of safety, and the Altman Z-Score is 1.32. I would want to see cash flow inflect before calling this a bargain.

In plain English: Solventum makes medical products used for wound care, surgery, dental care, and health records. The company is profitable, but sales are growing slowly and it recently used more cash than it generated. At $86.30, the shares do not look cheap compared with its cash flow and book value, though profits remain positive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer