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 operates globally, with 56% of 2023 net revenue from the Americas and 44% from international businesses. Solventum’s MedSurg segment provides advanced wound care and surgical solutions. Customers include public and private health systems, outpatient surgical centers, nursing facilities, and long-term care facilities. The company’s target market in this segment is approximately $26 billion and is growing at a rate of 3%-5%. MedSurg’s revenue has been flat over the past three years, with an average operating margin of approximately 23%. Solventum’s Dental Solutions is a provider of a comprehensive suite of restorative, preventive, and orthodontic solutions to dentists and orthodontists. The Company’s addressable market in this segment is approximately $17 billion and is growing at a rate of 4%-6%. Dental Solutions revenues have declined 5% over the past three years and average operating margins have been approximately 33%. Solventum’s Health Information Systems (HIS) segment provides software solutions driven by clinical intelligence, freeing up clinicians to care for patients and improving the accuracy of healthcare reimbursement. Target customer markets include public and private hospitals, physician groups and clinics, federal government agencies, and payer organizations. The Company’s addressable market in this segment is approximately $9 billion and is growing at a rate of 6%-8%. HIS revenues have increased 10% over the past three years and average operating margins have been approximately 31%. The Purification and Filtration