Solventum Corporation (SOLV) Stock Forecasts

Summary

Solventum has four business segments: MedSurg (56% of 2023 revenue), Dental Solutions (16%), Health Information Systems (16%), and Purification and Filtration (12%). The company is global, with 56% of its 2023 net revenue coming from the Americas and 44% coming from international companies. Solventum’s MedSurg segment offers advanced solutions in wound care and surgery. Customers include public and private health systems, ambulatory surgery centers, skilled nursing facilities and long-term care facilities. The company’s addressable market in this segment is around $26 billion and is growing at 3-5%. MedSurg’s revenue has remained stable over the past three years, with an average operating margin of approximately 23%. Solventum’s Dental Solutions is a provider of a complete suite of restorative, preventive and orthodontic solutions for dentists and orthodontists. The company’s addressable market in this segment is around $17 billion and is growing at 4-6%. Dental Solutions’ revenue has declined by 5% over the past three years and the average operating margin is around 33%. Solventum’s Health Information Systems (HIS) segment provides clinical intelligence-based software solutions that enable clinicians to care for patients and improve the accuracy of healthcare reimbursement. Target customer markets include public and private hospitals, physician groups and clinics, federal government agencies and payers. The company’s addressable market in this segment is around $9 billion and is growing at 6-8%. HIS’s revenue has grown by 10% over the past three years and the average operating margin is around 31%. Solventum’s Purification and Filtration segment provides filters