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Solventum Corporation

SOLV
52
Medical - Instruments & Supplies · Healthcare
Price
$89.57
+0.96 (+1.08%)
Market Cap
$15.51B
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Mixed
Cash Flow
Weak
Stability
Good
Valuation
Good

Share count rising — dilution

+1.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 172.5M (2021) → 175.3M (2025)

Winston Score History

The full picture

Solventum Corporation makes medical and healthcare products used in hospitals, clinics, and dental offices. Its main product lines include wound care supplies, surgical tools, dental materials, and health information software. The company was spun off from 3M in 2024, inheriting a large portfolio of established healthcare brands that 3M had built over decades.

Solventum earns money by selling its products and software to healthcare providers around the world, with a mix of one-time product sales and recurring software subscriptions. It operates globally, with significant revenue from North America and Europe, and generates roughly $8 billion in annual revenue. Its main competitive advantage is its deep relationships with hospitals and clinicians, along with a broad product catalog that is costly for customers to replace — however, the company carries a heavy debt load from the spinoff, which limits its financial flexibility and is a key risk investors watch closely.

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3 trades / 12mo

1 Congressional buy and 2 sells on SOLV in the last 12 months.

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Score breakdown

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Quality

Profit per sale
Gross Margin
58.2%
Premium pricing power — 58.2% gross margin
Profit after running costs
Operating Margin
8.2%
Modest — 8.2% operating margin
Return on the money invested
ROCE
21.0%
Exceptional — 21.0% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
-0.9%
Shrinking sales (-0.9% YoY)
Profit growth
EPS YoY
+275.3%
Earnings growing fast (+275.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
1%
Weak — only 1% of profit becomes cash
Spare cash per sale
FCF Margin
-4.7%
Burning cash (-4.7%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
1.06
Elevated debt (1.06)
Covers its interest
Interest Cover
7.81x
Adequate interest coverage (7.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
10.9x
Attractive valuation — P/E 10.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
-0.3
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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