MEDTRONIC PLC (1MDT.MI) Stock Fundamental Analysis
BIT:1MDT - Euronext Milan - IE00BTN1Y115 - Common Stock - Currency: EUR
Overall 1MDT gets a fundamental rating of 5 out of 10. We evaluated 1MDT against 58 industry peers in the Health Care Equipment & Supplies industry. While 1MDT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1MDT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1MDT was profitable.
1MDT had a positive operating cash flow in the past year.
Each year in the past 5 years 1MDT has been profitable.
1MDT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1MDT's Return On Assets of 5.09% is fine compared to the rest of the industry. 1MDT outperforms 71.67% of its industry peers.
1MDT's Return On Equity of 9.71% is fine compared to the rest of the industry. 1MDT outperforms 70.00% of its industry peers.
1MDT's Return On Invested Capital of 6.74% is fine compared to the rest of the industry. 1MDT outperforms 61.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MDT is in line with the industry average of 8.02%.
The 3 year average ROIC (6.40%) for 1MDT is below the current ROIC(6.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 9.71% | ||
| ROIC | 6.74% |
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.4%
ROIC(5y)6.26%
1.3 Margins
Looking at the Profit Margin, with a value of 13.90%, 1MDT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1MDT has declined.
The Operating Margin of 1MDT (19.80%) is better than 85.00% of its industry peers.
In the last couple of years the Operating Margin of 1MDT has remained more or less at the same level.
With a decent Gross Margin value of 65.48%, 1MDT is doing good in the industry, outperforming 61.67% of the companies in the same industry.
In the last couple of years the Gross Margin of 1MDT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.8% | ||
| PM (TTM) | 13.9% | ||
| GM | 65.48% |
OM growth 3Y-2.78%
OM growth 5Y0.8%
PM growth 3Y-4.39%
PM growth 5Y-3.44%
GM growth 3Y-1.44%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
1MDT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1MDT has been reduced compared to 1 year ago.
Compared to 5 years ago, 1MDT has less shares outstanding
Compared to 1 year ago, 1MDT has a worse debt to assets ratio.
2.2 Solvency
1MDT has an Altman-Z score of 2.75. This is not the best score and indicates that 1MDT is in the grey zone with still only limited risk for bankruptcy at the moment.
1MDT has a Altman-Z score of 2.75. This is comparable to the rest of the industry: 1MDT outperforms 60.00% of its industry peers.
The Debt to FCF ratio of 1MDT is 5.50, which is a neutral value as it means it would take 1MDT, 5.50 years of fcf income to pay off all of its debts.
1MDT has a Debt to FCF ratio (5.50) which is comparable to the rest of the industry.
1MDT has a Debt/Equity ratio of 0.53. This is a neutral value indicating 1MDT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, 1MDT is doing worse than 61.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.02
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.85 indicates that 1MDT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.85, 1MDT is in line with its industry, outperforming 56.67% of the companies in the same industry.
1MDT has a Quick Ratio of 1.42. This is a normal value and indicates that 1MDT is financially healthy and should not expect problems in meeting its short term obligations.
1MDT's Quick ratio of 1.42 is fine compared to the rest of the industry. 1MDT outperforms 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.57% over the past year.
1MDT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.68% yearly.
1MDT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.62%.
1MDT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.01% yearly.
EPS 1Y (TTM)5.57%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%10.96%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%3.94%
3.2 Future
The Earnings Per Share is expected to grow by 7.67% on average over the next years.
The Revenue is expected to grow by 5.03% on average over the next years.
EPS Next Y7.04%
EPS Next 2Y7.32%
EPS Next 3Y7.31%
EPS Next 5Y7.67%
Revenue Next Year4.48%
Revenue Next 2Y4.78%
Revenue Next 3Y4.85%
Revenue Next 5Y5.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.44 indicates a correct valuation of 1MDT.
1MDT's Price/Earnings ratio is rather cheap when compared to the industry. 1MDT is cheaper than 85.00% of the companies in the same industry.
1MDT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
1MDT is valuated correctly with a Price/Forward Earnings ratio of 14.42.
1MDT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1MDT is cheaper than 76.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, 1MDT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MDT indicates a somewhat cheap valuation: 1MDT is cheaper than 78.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1MDT is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21 | ||
| EV/EBITDA | 13.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1MDT may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)4.19
EPS Next 2Y7.32%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
1MDT has a Yearly Dividend Yield of 3.45%. Purely for dividend investing, there may be better candidates out there.
1MDT's Dividend Yield is rather good when compared to the industry average which is at 2.07. 1MDT pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 1MDT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of 1MDT has a limited annual growth rate of 5.10%.
Dividend Growth(5Y)5.1%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MDT pays out 76.97% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1MDT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.97%
EPS Next 2Y7.32%
EPS Next 3Y7.31%
BIT:1MDT (6/4/2025, 7:00:00 PM)
74.88
-0.73 (-0.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners85.71%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap96.04B
Analysts71.58
Price Target87.37 (16.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend2.44
Dividend Growth(5Y)5.1%
DP76.97%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.4%
Min EPS beat(2)1.21%
Max EPS beat(2)1.59%
EPS beat(4)3
Avg EPS beat(4)1.09%
Min EPS beat(4)-0.08%
Max EPS beat(4)1.65%
EPS beat(8)6
Avg EPS beat(8)2.27%
EPS beat(12)8
Avg EPS beat(12)1.68%
EPS beat(16)10
Avg EPS beat(16)1.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)0.17%
Revenue beat(4)3
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.59%
Revenue beat(8)6
Avg Revenue beat(8)0.24%
Revenue beat(12)9
Avg Revenue beat(12)0.4%
Revenue beat(16)10
Avg Revenue beat(16)-0.28%
PT rev (1m)-1.94%
PT rev (3m)0.37%
EPS NQ rev (1m)-6.73%
EPS NQ rev (3m)-6.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.42 | ||
| P/S | 3.25 | ||
| P/FCF | 21 | ||
| P/OCF | 15.46 | ||
| P/B | 2.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.03 |
EPS(TTM)4.85
EY6.48%
EPS(NY)5.19
Fwd EY6.93%
FCF(TTM)3.57
FCFY4.76%
OCF(TTM)4.84
OCFY6.47%
SpS23.06
BVpS33.02
TBVpS-3.7
PEG (NY)2.19
PEG (5Y)4.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 9.71% | ||
| ROCE | 8.43% | ||
| ROIC | 6.74% | ||
| ROICexc | 7.61% | ||
| ROICexgc | 32.33% | ||
| OM | 19.8% | ||
| PM (TTM) | 13.9% | ||
| GM | 65.48% | ||
| FCFM | 15.46% |
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.4%
ROIC(5y)6.26%
ROICexc(3y)7.14%
ROICexc(5y)7.08%
ROICexgc(3y)30.08%
ROICexgc(5y)33.46%
ROCE(3y)8%
ROCE(5y)7.83%
ROICexcg growth 3Y-10.99%
ROICexcg growth 5Y-5.11%
ROICexc growth 3Y-1.79%
ROICexc growth 5Y3.7%
OM growth 3Y-2.78%
OM growth 5Y0.8%
PM growth 3Y-4.39%
PM growth 5Y-3.44%
GM growth 3Y-1.44%
GM growth 5Y-0.69%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 64.98% | ||
| Cap/Sales | 5.54% | ||
| Interest Coverage | 8.72 | ||
| Cash Conversion | 74.12% | ||
| Profit Quality | 111.2% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.75 |
F-Score6
WACC6.64%
ROIC/WACC1.02
Cap/Depr(3y)59.68%
Cap/Depr(5y)55.94%
Cap/Sales(3y)5.04%
Cap/Sales(5y)4.79%
Profit Quality(3y)124.85%
Profit Quality(5y)125.74%
High Growth Momentum
Growth
EPS 1Y (TTM)5.57%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%10.96%
EPS Next Y7.04%
EPS Next 2Y7.32%
EPS Next 3Y7.31%
EPS Next 5Y7.67%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%3.94%
Revenue Next Year4.48%
Revenue Next 2Y4.78%
Revenue Next 3Y4.85%
Revenue Next 5Y5.03%
EBIT growth 1Y8.51%
EBIT growth 3Y-0.93%
EBIT growth 5Y3.84%
EBIT Next Year19.91%
EBIT Next 3Y9.99%
EBIT Next 5Y11.09%
FCF growth 1Y-0.29%
FCF growth 3Y-4.64%
FCF growth 5Y-2.95%
OCF growth 1Y3.79%
OCF growth 3Y-1.39%
OCF growth 5Y-0.53%