GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Solventum Corp (FRA:KB7) » Definitions » Earnings Yield (Joel Greenblatt) %

Solventum (FRA:KB7) Earnings Yield (Joel Greenblatt) % : 3.63% (As of Mar. 2025)


View and export this data going back to 2024. Start your Free Trial

What is Solventum Earnings Yield (Joel Greenblatt) %?

Solventum's Enterprise Value for the quarter that ended in Mar. 2025 was €18,504 Mil. Solventum's EBIT for the trailing twelve months (TTM) ended in Mar. 2025 was €688 Mil. Solventum's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2025 was 3.63%.

The historical rank and industry rank for Solventum's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

FRA:KB7' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.67   Med: 6.5   Max: 14.11
Current: 3.74

During the past 5 years, the highest Earnings Yield (Joel Greenblatt) of Solventum was 14.11%. The lowest was 3.67%. And the median was 6.50%.

FRA:KB7's Earnings Yield (Joel Greenblatt) % is ranked better than
66.9% of 864 companies
in the Medical Devices & Instruments industry
Industry Median: 0.365 vs FRA:KB7: 3.74

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Solventum's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2025 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Solventum Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Solventum's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Solventum Earnings Yield (Joel Greenblatt) % Chart

Solventum Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Earnings Yield (Joel Greenblatt) %
- - - - 5.21

Solventum Quarterly Data
Dec21 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.66 8.88 6.41 5.21 3.63

Competitive Comparison of Solventum's Earnings Yield (Joel Greenblatt) %

For the Medical Instruments & Supplies subindustry, Solventum's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Solventum's Earnings Yield (Joel Greenblatt) % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Solventum's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Solventum's Earnings Yield (Joel Greenblatt) % falls into.


;
;

Solventum Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Solventums Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2024 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=928.26/17720.965
=5.24 %

Solventum's EBIT for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was €688 Mil.



Solventum  (FRA:KB7) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Solventum Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Solventum's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Solventum Business Description

Traded in Other Exchanges
Address
2510 Conway Avenue East, 3M Center, Building 275-6W, Maplewood, MN, USA, 55144
Solventum Corp is a healthcare company developing, manufacturing, and commercializing a portfolio of solutions that leverage deep material science, data science, and digital capabilities to address critical customer and patient needs. The company has four operating segments: MedSurg, Dental Solutions, Health Information Systems, and Purification and Filtration. The company generates the majority of its revenue from the MedSurg segment, which provides wound care and surgical solutions that are intended to accelerate healing, prevent complications, and lower the total cost of care globally.

Solventum Headlines

No Headlines