SOLV:NYSESolventum Corporation Analysis
Data as of 2026-05-02 - not real-time
$66.63
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
Solventum (SOLV) trades at $66.63, sitting below its 20‑day ($67.56), 50‑day ($68.04) and 200‑day ($73.86) moving averages, signaling a short‑term bearish bias. The stock’s RSI of 45 and a bearish MACD histogram reinforce this technical weakness, while volume is trending down, suggesting waning buying interest.
Fundamentally, SOLV looks cheap on a price‑to‑earnings basis (P/E 7.5 vs. industry average 25.6) and delivers an impressive ROE of 38.9%, but it carries a heavy debt load (Debt/Equity ~104%) and has posted a 3.7% revenue decline, raising concerns about sustainability. The DCF fair‑value estimate of $23.46 is dramatically lower than the market price, indicating potential overvaluation despite analyst optimism (Buy rating, median target $85, ~27% upside). High 30‑day volatility (≈29%) and a beta near 1 add to the risk profile, especially as the company prepares to release its Q1 2026 results on May 5.
Fundamentally, SOLV looks cheap on a price‑to‑earnings basis (P/E 7.5 vs. industry average 25.6) and delivers an impressive ROE of 38.9%, but it carries a heavy debt load (Debt/Equity ~104%) and has posted a 3.7% revenue decline, raising concerns about sustainability. The DCF fair‑value estimate of $23.46 is dramatically lower than the market price, indicating potential overvaluation despite analyst optimism (Buy rating, median target $85, ~27% upside). High 30‑day volatility (≈29%) and a beta near 1 add to the risk profile, especially as the company prepares to release its Q1 2026 results on May 5.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price below key moving averages and bearish MACD
- Decreasing volume and elevated 30‑day volatility
- Upcoming earnings release may clarify momentum
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Low P/E relative to industry and strong ROE
- Analyst consensus Buy with median target $85
- Potential upside of ~27% if price approaches target
Long Term
> 3 yearsPositive
Model confidence: 7/10
Key Factors
- Durable gross margins (~54%) and profitable business model
- Diversified medical‑instrument portfolio across three segments
- High leverage and revenue decline warrant monitoring of debt servicing
Key Metrics & Analysis
Financial Health
Revenue Growth-3.70%
Profit Margin18.69%
P/E Ratio7.5
ROE38.86%
ROA2.94%
Debt/Equity103.94
P/B Ratio2.3
Op. Cash Flow$369.0M
Free Cash Flow$633.2M
Industry P/E25.6
Technical Analysis
TrendBearish
RSI45.3
Support$62.38
Resistance$71.42
MA 20$67.56
MA 50$68.04
MA 200$73.86
MACDBearish
VolumeDecreasing
Fear & Greed Index91.09
Valuation
Fair Value$23.46
Target Price$84.18
Upside/Downside26.34%
GradeOvervalued
TypeValue
Risk Assessment
Beta1.02
Volatility28.95%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.