MEDTRONIC PLC (2M6.DE) Stock Fundamental Analysis
FRA:2M6 - Deutsche Boerse Ag - IE00BTN1Y115 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 2M6. 2M6 was compared to 55 industry peers in the Health Care Equipment & Supplies industry. 2M6 has only an average score on both its financial health and profitability. 2M6 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
2M6 had positive earnings in the past year.
In the past year 2M6 had a positive cash flow from operations.
Each year in the past 5 years 2M6 has been profitable.
Each year in the past 5 years 2M6 had a positive operating cash flow.
1.2 Ratios
2M6's Return On Assets of 4.76% is fine compared to the rest of the industry. 2M6 outperforms 72.55% of its industry peers.
The Return On Equity of 2M6 (8.84%) is better than 72.55% of its industry peers.
2M6 has a better Return On Invested Capital (5.94%) than 62.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 2M6 is below the industry average of 8.18%.
| 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 2M6 (13.00%) is better than 80.39% of its industry peers.
2M6's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.06%, 2M6 belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
In the last couple of years the Operating Margin of 2M6 has declined.
2M6's Gross Margin of 65.39% is fine compared to the rest of the industry. 2M6 outperforms 64.71% of its industry peers.
2M6's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 2M6 is destroying value.
Compared to 1 year ago, 2M6 has less shares outstanding
2M6 has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 2M6 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.85 indicates that 2M6 is not a great score, but indicates only limited risk for bankruptcy at the moment.
2M6's Altman-Z score of 2.85 is fine compared to the rest of the industry. 2M6 outperforms 64.71% of its industry peers.
The Debt to FCF ratio of 2M6 is 5.15, which is a neutral value as it means it would take 2M6, 5.15 years of fcf income to pay off all of its debts.
2M6 has a Debt to FCF ratio of 5.15. This is in the better half of the industry: 2M6 outperforms 66.67% of its industry peers.
2M6 has a Debt/Equity ratio of 0.51. This is a neutral value indicating 2M6 is somewhat dependend on debt financing.
2M6 has a worse Debt to Equity ratio (0.51) than 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.15 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.94
WACC6.29%
2.3 Liquidity
2M6 has a Current Ratio of 1.84. This is a normal value and indicates that 2M6 is financially healthy and should not expect problems in meeting its short term obligations.
2M6's Current ratio of 1.84 is in line compared to the rest of the industry. 2M6 outperforms 45.10% of its industry peers.
2M6 has a Quick Ratio of 1.39. This is a normal value and indicates that 2M6 is financially healthy and should not expect problems in meeting its short term obligations.
2M6's Quick ratio of 1.39 is fine compared to the rest of the industry. 2M6 outperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
2M6 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.32%.
2M6 shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.04% yearly.
2M6 shows a small growth in Revenue. In the last year, the Revenue has grown by 3.25%.
2M6 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.16% yearly.
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
The Earnings Per Share is expected to grow by 6.85% on average over the next years.
Based on estimates for the next years, 2M6 will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y5.7%
EPS Next 2Y6.39%
EPS Next 3Y6.86%
EPS Next 5Y6.85%
Revenue Next Year4%
Revenue Next 2Y4.37%
Revenue Next 3Y4.59%
Revenue Next 5Y4.83%
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
2M6 is valuated correctly with a Price/Earnings ratio of 16.84.
Based on the Price/Earnings ratio, 2M6 is valued cheaply inside the industry as 90.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.19, 2M6 is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.00, 2M6 is valued correctly.
76.47% of the companies in the same industry are more expensive than 2M6, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 2M6 to the average of the S&P500 Index (24.37), we can say 2M6 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15 |
4.2 Price Multiples
78.43% of the companies in the same industry are more expensive than 2M6, based on the Enterprise Value to EBITDA ratio.
2M6's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 2M6 is cheaper than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.63 | ||
| EV/EBITDA | 14.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 2M6 does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 2M6 may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)N/A
EPS Next 2Y6.39%
EPS Next 3Y6.86%
5. Dividend
5.1 Amount
2M6 has a Yearly Dividend Yield of 3.21%.
2M6's Dividend Yield is rather good when compared to the industry average which is at 2.50. 2M6 pays more dividend than 90.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, 2M6 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
The dividend of 2M6 is nicely growing with an annual growth rate of 6.78%!
Dividend Growth(5Y)6.78%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
2M6 pays out 84.54% of its income as dividend. This is not a sustainable payout ratio.
2M6's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP84.54%
EPS Next 2Y6.39%
EPS Next 3Y6.86%
MEDTRONIC PLC
FRA:2M6 (1/22/2025, 7:00:00 PM)
84.7
+0.12 (+0.14%)
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 Cap108.61B
Analysts71.35
Price Target93.21 (10.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend2.77
Dividend Growth(5Y)6.78%
DP84.54%
Div Incr Years6
Div Non Decr Years6
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)-0.3%
PT rev (1m)0.82%
PT rev (3m)8.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15 | ||
| P/S | 3.44 | ||
| P/FCF | 20.63 | ||
| P/OCF | 15.76 | ||
| P/B | 2.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.24 |
EPS(TTM)5.03
EY5.94%
EPS(NY)5.65
Fwd EY6.67%
FCF(TTM)4.11
FCFY4.85%
OCF(TTM)5.37
OCFY6.34%
SpS24.64
BVpS36.21
TBVpS-3.8
PEG (NY)2.95
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 | 2.85 |
F-Score6
WACC6.29%
ROIC/WACC0.94
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 Y5.7%
EPS Next 2Y6.39%
EPS Next 3Y6.86%
EPS Next 5Y6.85%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y2.43%
Revenue growth 5Y1.16%
Sales Q2Q%5.25%
Revenue Next Year4%
Revenue Next 2Y4.37%
Revenue Next 3Y4.59%
Revenue Next 5Y4.83%
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%