Solventum Corporation cash flow to debt ratio of 7.33% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Solventum Corporation's free cash flow has decreased -101.24% from $805.00M last year to $-10.00M, signaling decreasing performance

Solventum Corporation's debt to equity ratio is 1.10, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Solventum Corporation's debt has decreased relative to shareholder equity from 2.71 last year to 1.10 today, signaling strengthened financials

Solventum Corporation has a net debt to EBITDA ratio of 1.63x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Solventum Corporation's interest coverage ratio of 7.81 indicates that earnings with good margin can cover interest payments on company debt

Solventum Corporation's profit margin has increased (197.36%) in the last year from 5.80% to 17.26%, signaling increasing performance

Solventum Corporation's short-term assets of $3.86G exceed its short-term liabilities of $3.14G

Solventum Corporation's return on assets of 10.07% is higher than the 5.00% threshold, indicating efficient asset utilization

Solventum Corporation's return on equity of 28.96%, is higher than 15.00%, indicating good performance

Solventum Corporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Solventum Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Solventum Corporation has negative free cash flow, indicating the company is burning cash rather than generating it

Solventum Corporation has negative free cash flow, indicating cash burn

Solventum Corporation's yearly earnings has increased 224.84% since last year from $479.00M to $1.56G, signaling increasing performance

Solventum Corporation's yearly revenue has increased 0.86% since last year from $8.25G to $8.32G, signaling increasing performance

ROIC 15.85% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Solventum Corporation's 3-year revenue CAGR of 0.79% is positive, indicating growing revenue over the past 3 years

Solventum Corporation had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance

Solventum Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Solventum Corporation has insufficient data to evaluate this check.

Solventum Corporation has an earnings yield of 9.33%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Solventum Corporation is overvalued relative to its fair value price of 78.89 based on EBITDA multiple model

Solventum Corporation has an EV/EBITDA ratio of 7.65x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Solventum Corporation is undervalued relative to its fair value price of 111.64 based on Earnings Fair Value model

Solventum Corporation has a PEG-ratio under 1 which is considered undervalued

Solventum Corporation has a price-to-book ratio of 3.20x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Solventum Corporation has a price-to-sales ratio of 1.85x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue