MEDTRONIC PLC (1MDT.MI) Stock Fundamental Analysis
BIT:1MDT - Euronext Milan - IE00BTN1Y115 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1MDT. 1MDT was compared to 60 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of 1MDT get a neutral evaluation. Nothing too spectacular is happening here. 1MDT has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years 1MDT had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.76%, 1MDT is doing good in the industry, outperforming 73.58% of the companies in the same industry.
The Return On Equity of 1MDT (8.84%) is better than 73.58% of its industry peers.
1MDT has a better Return On Invested Capital (5.94%) than 64.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MDT is below the industry average of 7.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 8.84% | ||
| ROIC | 5.94% |
ROA(3y)4.59%
ROA(5y)4.58%
ROE(3y)8.07%
ROE(5y)8.13%
ROIC(3y)5.95%
ROIC(5y)5.53%
1.3 Margins
The Profit Margin of 1MDT (13.00%) is better than 83.02% of its industry peers.
In the last couple of years the Profit Margin of 1MDT has declined.
1MDT has a better Operating Margin (19.06%) than 86.79% of its industry peers.
1MDT's Operating Margin has declined in the last couple of years.
The Gross Margin of 1MDT (65.39%) is better than 67.92% of its industry peers.
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 | 19.06% | ||
| PM (TTM) | 13% | ||
| GM | 65.39% |
OM growth 3Y1.83%
OM growth 5Y-3.49%
PM growth 3Y-1.74%
PM growth 5Y-5.6%
GM growth 3Y0.06%
GM growth 5Y-1.35%
2. Health
2.1 Basic Checks
1MDT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1MDT has less shares outstanding than it did 1 year ago.
1MDT has less shares outstanding than it did 5 years ago.
1MDT has a worse debt/assets ratio than last year.
2.2 Solvency
1MDT has an Altman-Z score of 2.83. 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 better Altman-Z score (2.83) than 62.26% of its industry peers.
1MDT has a debt to FCF ratio of 5.15. This is a neutral value as 1MDT would need 5.15 years to pay back of all of its debts.
1MDT has a better Debt to FCF ratio (5.15) than 69.81% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that 1MDT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, 1MDT is in line with its industry, outperforming 41.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.15 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.95
WACC6.28%
2.3 Liquidity
1MDT has a Current Ratio of 1.84. This is a normal value and indicates that 1MDT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.84, 1MDT perfoms like the industry average, outperforming 45.28% of the companies in the same industry.
1MDT has a Quick Ratio of 1.39. This is a normal value and indicates that 1MDT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.39, 1MDT is in the better half of the industry, outperforming 64.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
1MDT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.32%.
1MDT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.04% yearly.
The Revenue has been growing slightly by 3.25% in the past year.
The Revenue has been growing slightly by 1.16% on average over the past years.
EPS 1Y (TTM)-1.32%
EPS 3Y5.55%
EPS 5Y-0.04%
EPS Q2Q%0.8%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y2.43%
Revenue growth 5Y1.16%
Sales Q2Q%5.25%
3.2 Future
1MDT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.74% yearly.
Based on estimates for the next years, 1MDT will show a small growth in Revenue. The Revenue will grow by 4.82% on average per year.
EPS Next Y5.68%
EPS Next 2Y6.4%
EPS Next 3Y6.9%
EPS Next 5Y6.74%
Revenue Next Year4.06%
Revenue Next 2Y4.41%
Revenue Next 3Y4.62%
Revenue Next 5Y4.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.48, 1MDT is valued on the expensive side.
90.57% of the companies in the same industry are more expensive than 1MDT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1MDT to the average of the S&P500 Index (29.35), we can say 1MDT is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.55, which indicates a correct valuation of 1MDT.
Based on the Price/Forward Earnings ratio, 1MDT is valued a bit cheaper than the industry average as 79.25% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1MDT to the average of the S&P500 Index (22.10), we can say 1MDT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 15.55 |
4.2 Price Multiples
1MDT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1MDT is cheaper than 81.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1MDT is valued cheaply inside the industry as 90.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.39 | ||
| EV/EBITDA | 14.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MDT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1MDT may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)N/A
EPS Next 2Y6.4%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
1MDT has a Yearly Dividend Yield of 3.04%.
Compared to an average industry Dividend Yield of 2.26, 1MDT pays a better dividend. On top of this 1MDT pays more dividend than 88.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 1MDT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of 1MDT is nicely growing with an annual growth rate of 6.78%!
Dividend Growth(5Y)6.78%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1MDT pays out 84.54% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1MDT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP84.54%
EPS Next 2Y6.4%
EPS Next 3Y6.9%
BIT:1MDT (3/3/2025, 7:00:00 PM)
88.26
+5.2 (+6.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners85.94%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap113.17B
Analysts71.35
Price Target87.04 (-1.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend2.77
Dividend Growth(5Y)6.78%
DP84.54%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.78%
Min EPS beat(2)-0.08%
Max EPS beat(2)1.65%
EPS beat(4)2
Avg EPS beat(4)0.84%
Min EPS beat(4)-0.31%
Max EPS beat(4)2.11%
EPS beat(8)5
Avg EPS beat(8)2.1%
EPS beat(12)6
Avg EPS beat(12)1.09%
EPS beat(16)10
Avg EPS beat(16)2.2%
Revenue beat(2)2
Avg Revenue beat(2)0.5%
Min Revenue beat(2)0.41%
Max Revenue beat(2)0.59%
Revenue beat(4)4
Avg Revenue beat(4)0.63%
Min Revenue beat(4)0.41%
Max Revenue beat(4)0.8%
Revenue beat(8)7
Avg Revenue beat(8)0.92%
Revenue beat(12)8
Avg Revenue beat(12)-0.12%
Revenue beat(16)9
Avg Revenue beat(16)-0.29%
PT rev (1m)-4.63%
PT rev (3m)1.77%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 15.55 | ||
| P/S | 3.56 | ||
| P/FCF | 21.39 | ||
| P/OCF | 16.35 | ||
| P/B | 2.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.05 |
EPS(TTM)5.05
EY5.72%
EPS(NY)5.68
Fwd EY6.43%
FCF(TTM)4.13
FCFY4.68%
OCF(TTM)5.4
OCFY6.12%
SpS24.76
BVpS36.39
TBVpS-3.82
PEG (NY)3.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 8.84% | ||
| ROCE | 8.08% | ||
| ROIC | 5.94% | ||
| ROICexc | 6.62% | ||
| ROICexgc | 28.42% | ||
| OM | 19.06% | ||
| PM (TTM) | 13% | ||
| GM | 65.39% | ||
| FCFM | 16.67% |
ROA(3y)4.59%
ROA(5y)4.58%
ROE(3y)8.07%
ROE(5y)8.13%
ROIC(3y)5.95%
ROIC(5y)5.53%
ROICexc(3y)6.7%
ROICexc(5y)6.28%
ROICexgc(3y)31.86%
ROICexgc(5y)32.58%
ROCE(3y)8.09%
ROCE(5y)7.51%
ROICexcg growth 3Y-2.06%
ROICexcg growth 5Y-10.72%
ROICexc growth 3Y5.54%
ROICexc growth 5Y-2.32%
OM growth 3Y1.83%
OM growth 5Y-3.49%
PM growth 3Y-1.74%
PM growth 5Y-5.6%
GM growth 3Y0.06%
GM growth 5Y-1.35%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.15 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 64.24% | ||
| Cap/Sales | 5.14% | ||
| Interest Coverage | 7.29 | ||
| Cash Conversion | 80.59% | ||
| Profit Quality | 128.24% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 2.83 |
F-Score6
WACC6.28%
ROIC/WACC0.95
Cap/Depr(3y)54.86%
Cap/Depr(5y)52.06%
Cap/Sales(3y)4.63%
Cap/Sales(5y)4.52%
Profit Quality(3y)127.33%
Profit Quality(5y)128.64%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.32%
EPS 3Y5.55%
EPS 5Y-0.04%
EPS Q2Q%0.8%
EPS Next Y5.68%
EPS Next 2Y6.4%
EPS Next 3Y6.9%
EPS Next 5Y6.74%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y2.43%
Revenue growth 5Y1.16%
Sales Q2Q%5.25%
Revenue Next Year4.06%
Revenue Next 2Y4.41%
Revenue Next 3Y4.62%
Revenue Next 5Y4.82%
EBIT growth 1Y-2.15%
EBIT growth 3Y4.3%
EBIT growth 5Y-2.37%
EBIT Next Year17.36%
EBIT Next 3Y10.2%
EBIT Next 5Y10.91%
FCF growth 1Y14.04%
FCF growth 3Y2.1%
FCF growth 5Y-2.4%
OCF growth 1Y14.39%
OCF growth 3Y2.84%
OCF growth 5Y-0.64%