MEDTRONIC PLC (2M6.DE) Stock Fundamental Analysis
FRA:2M6 - Deutsche Boerse Ag - IE00BTN1Y115 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 2M6. 2M6 was compared to 55 industry peers in the Health Care Equipment & Supplies industry. While 2M6 has a great profitability rating, there are some minor concerns on its financial health. 2M6 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 2M6 was profitable.
In the past year 2M6 had a positive cash flow from operations.
Each year in the past 5 years 2M6 has been profitable.
2M6 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
2M6's Return On Assets of 4.73% is fine compared to the rest of the industry. 2M6 outperforms 74.55% of its industry peers.
2M6 has a better Return On Equity (8.63%) than 70.91% of its industry peers.
The Return On Invested Capital of 2M6 (6.09%) is better than 69.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 2M6 is below the industry average of 8.28%.
The last Return On Invested Capital (6.09%) for 2M6 is above the 3 year average (5.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 8.63% | ||
| ROIC | 6.09% |
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
Looking at the Profit Margin, with a value of 12.83%, 2M6 belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
2M6's Profit Margin has declined in the last couple of years.
2M6 has a Operating Margin of 19.47%. This is amongst the best in the industry. 2M6 outperforms 87.27% of its industry peers.
2M6's Operating Margin has declined in the last couple of years.
2M6's Gross Margin of 65.59% is fine compared to the rest of the industry. 2M6 outperforms 67.27% of its industry peers.
In the last couple of years the Gross Margin of 2M6 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.47% | ||
| PM (TTM) | 12.83% | ||
| GM | 65.59% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 2M6 is destroying value.
The number of shares outstanding for 2M6 has been reduced compared to 1 year ago.
2M6 has less shares outstanding than it did 5 years ago.
2M6 has a worse debt/assets ratio than last year.
2.2 Solvency
2M6 has an Altman-Z score of 3.01. This indicates that 2M6 is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 2M6 (3.01) is better than 72.73% of its industry peers.
The Debt to FCF ratio of 2M6 is 4.87, which is a neutral value as it means it would take 2M6, 4.87 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.87, 2M6 is doing good in the industry, outperforming 70.91% of the companies in the same industry.
2M6 has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of 2M6 (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.93
WACC6.58%
2.3 Liquidity
2M6 has a Current Ratio of 1.90. This is a normal value and indicates that 2M6 is financially healthy and should not expect problems in meeting its short term obligations.
2M6 has a Current ratio of 1.90. This is comparable to the rest of the industry: 2M6 outperforms 58.18% of its industry peers.
A Quick Ratio of 1.43 indicates that 2M6 should not have too much problems paying its short term obligations.
2M6 has a Quick ratio of 1.43. This is in the better half of the industry: 2M6 outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
2M6 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.38%.
Measured over the past years, 2M6 shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.04% on average per year.
The Revenue has been growing slightly by 2.72% in the past year.
The Revenue has been growing slightly by 1.16% on average over the past years.
EPS 1Y (TTM)0.38%
EPS 3Y5.55%
EPS 5Y-0.04%
EPS Q2Q%6.92%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y2.43%
Revenue growth 5Y1.16%
Sales Q2Q%2.51%
3.2 Future
Based on estimates for the next years, 2M6 will show a small growth in Earnings Per Share. The EPS will grow by 6.74% on average per year.
2M6 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.82% yearly.
EPS Next Y5.72%
EPS Next 2Y6.4%
EPS Next 3Y6.82%
EPS Next 5Y6.74%
Revenue Next Year3.89%
Revenue Next 2Y4.17%
Revenue Next 3Y4.48%
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 17.56, 2M6 is valued on the expensive side.
Based on the Price/Earnings ratio, 2M6 is valued cheaply inside the industry as 87.27% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.35. 2M6 is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.90 indicates a correct valuation of 2M6.
2M6's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 2M6 is cheaper than 76.36% of the companies in the same industry.
2M6 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 15.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 2M6 indicates a rather cheap valuation: 2M6 is cheaper than 81.82% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 2M6 indicates a rather cheap valuation: 2M6 is cheaper than 87.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.01 | ||
| EV/EBITDA | 14.48 |
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 2M6 may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)N/A
EPS Next 2Y6.4%
EPS Next 3Y6.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.01%, 2M6 has a reasonable but not impressive dividend return.
2M6's Dividend Yield is rather good when compared to the industry average which is at 2.13. 2M6 pays more dividend than 94.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 2M6 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
5.2 History
On average, the dividend of 2M6 grows each year by 6.78%, which is quite nice.
Dividend Growth(5Y)6.78%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
84.62% of the earnings are spent on dividend by 2M6. This is not a sustainable payout ratio.
2M6's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.62%
EPS Next 2Y6.4%
EPS Next 3Y6.82%
FRA:2M6 (3/7/2025, 7:00:00 PM)
86.4
-0.04 (-0.05%)
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 Cap110.81B
Analysts70
Price Target92.34 (6.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend2.56
Dividend Growth(5Y)6.78%
DP84.62%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.56%
Min EPS beat(2)-0.08%
Max EPS beat(2)1.21%
EPS beat(4)2
Avg EPS beat(4)0.62%
Min EPS beat(4)-0.31%
Max EPS beat(4)1.65%
EPS beat(8)5
Avg EPS beat(8)2.04%
EPS beat(12)7
Avg EPS beat(12)1.23%
EPS beat(16)10
Avg EPS beat(16)1.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)0.59%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.8%
Revenue beat(8)6
Avg Revenue beat(8)0.54%
Revenue beat(12)8
Avg Revenue beat(12)-0.03%
Revenue beat(16)9
Avg Revenue beat(16)-0.32%
PT rev (1m)1.28%
PT rev (3m)-0.12%
EPS NQ rev (1m)-1.79%
EPS NQ rev (3m)-1.9%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 15.9 | ||
| P/S | 3.62 | ||
| P/FCF | 22.01 | ||
| P/OCF | 16.5 | ||
| P/B | 2.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.48 |
EPS(TTM)4.92
EY5.69%
EPS(NY)5.43
Fwd EY6.29%
FCF(TTM)3.93
FCFY4.54%
OCF(TTM)5.24
OCFY6.06%
SpS23.84
BVpS35.47
TBVpS-2.6
PEG (NY)3.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 8.63% | ||
| ROCE | 8.27% | ||
| ROIC | 6.09% | ||
| ROICexc | 6.77% | ||
| ROICexgc | 27.64% | ||
| OM | 19.47% | ||
| PM (TTM) | 12.83% | ||
| GM | 65.59% | ||
| FCFM | 16.46% |
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 | 0.49 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 68.26% | ||
| Cap/Sales | 5.5% | ||
| Interest Coverage | 7.84 | ||
| Cash Conversion | 79.78% | ||
| Profit Quality | 128.31% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 3.01 |
F-Score6
WACC6.58%
ROIC/WACC0.93
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)0.38%
EPS 3Y5.55%
EPS 5Y-0.04%
EPS Q2Q%6.92%
EPS Next Y5.72%
EPS Next 2Y6.4%
EPS Next 3Y6.82%
EPS Next 5Y6.74%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y2.43%
Revenue growth 5Y1.16%
Sales Q2Q%2.51%
Revenue Next Year3.89%
Revenue Next 2Y4.17%
Revenue Next 3Y4.48%
Revenue Next 5Y4.82%
EBIT growth 1Y0.33%
EBIT growth 3Y4.3%
EBIT growth 5Y-2.37%
EBIT Next Year17.36%
EBIT Next 3Y10.2%
EBIT Next 5Y10.91%
FCF growth 1Y31.17%
FCF growth 3Y2.1%
FCF growth 5Y-2.4%
OCF growth 1Y29.36%
OCF growth 3Y2.84%
OCF growth 5Y-0.64%