MEDTRONIC PLC (MDT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:MDT • IE00BTN1Y115
102.96 USD
+1.96 (+1.94%)
At close: Jan 30, 2026
102.55 USD
-0.41 (-0.4%)
After Hours: 1/30/2026, 7:05:57 PM
We assign a fundamental rating of 6 out of 10 to MDT. MDT was compared to 184 industry peers in the Health Care Equipment & Supplies industry. MDT scores excellent on profitability, but there are some minor concerns on its financial health. MDT has a correct valuation and a medium growth rate. MDT also has an excellent dividend rating. This makes MDT very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
- MDT had positive earnings in the past year.
- In the past year MDT had a positive cash flow from operations.
- Each year in the past 5 years MDT has been profitable.
- Each year in the past 5 years MDT had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 5.22%, MDT belongs to the best of the industry, outperforming 82.07% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 9.79%, MDT belongs to the top of the industry, outperforming 85.87% of the companies in the same industry.
- The Return On Invested Capital of MDT (6.63%) is better than 80.98% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MDT is below the industry average of 8.81%.
- The last Return On Invested Capital (6.63%) for MDT is above the 3 year average (6.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.79% | ||
| ROIC | 6.63% |
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.35%
ROIC(5y)6.24%
1.3 Margins
- MDT has a better Profit Margin (13.71%) than 90.22% of its industry peers.
- MDT's Profit Margin has declined in the last couple of years.
- MDT has a better Operating Margin (19.42%) than 92.93% of its industry peers.
- In the last couple of years the Operating Margin of MDT has remained more or less at the same level.
- The Gross Margin of MDT (65.57%) is better than 70.11% of its industry peers.
- In the last couple of years the Gross Margin of MDT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.42% | ||
| PM (TTM) | 13.71% | ||
| GM | 65.57% |
OM growth 3Y-3.47%
OM growth 5Y0.37%
PM growth 3Y-4.39%
PM growth 5Y-3.44%
GM growth 3Y-1.55%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MDT is destroying value.
- MDT has less shares outstanding than it did 1 year ago.
- MDT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MDT has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.12 indicates that MDT is not in any danger for bankruptcy at the moment.
- MDT has a better Altman-Z score (3.12) than 69.02% of its industry peers.
- MDT has a debt to FCF ratio of 5.59. This is a neutral value as MDT would need 5.59 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 5.59, MDT is doing good in the industry, outperforming 78.26% of the companies in the same industry.
- A Debt/Equity ratio of 0.57 indicates that MDT is somewhat dependend on debt financing.
- MDT has a worse Debt to Equity ratio (0.57) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.96
WACC6.91%
2.3 Liquidity
- A Current Ratio of 2.42 indicates that MDT has no problem at all paying its short term obligations.
- MDT's Current ratio of 2.42 is in line compared to the rest of the industry. MDT outperforms 48.91% of its industry peers.
- MDT has a Quick Ratio of 1.80. This is a normal value and indicates that MDT is financially healthy and should not expect problems in meeting its short term obligations.
- MDT has a Quick ratio (1.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
- MDT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.24%.
- Measured over the past 5 years, MDT shows a small growth in Earnings Per Share. The EPS has been growing by 3.68% on average per year.
- MDT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.34%.
- MDT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.01% yearly.
EPS 1Y (TTM)7.24%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%7.94%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%6.64%
3.2 Future
- MDT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.08% yearly.
- MDT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.80% yearly.
EPS Next Y3.62%
EPS Next 2Y6.02%
EPS Next 3Y6.42%
EPS Next 5Y6.08%
Revenue Next Year7.67%
Revenue Next 2Y6.75%
Revenue Next 3Y6.25%
Revenue Next 5Y5.8%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- MDT is valuated rather expensively with a Price/Earnings ratio of 18.29.
- 83.70% of the companies in the same industry are more expensive than MDT, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of MDT to the average of the S&P500 Index (28.30), we can say MDT is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 16.66, MDT is valued correctly.
- 85.87% of the companies in the same industry are more expensive than MDT, based on the Price/Forward Earnings ratio.
- MDT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 16.66 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 82.07% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, MDT is valued cheaply inside the industry as 84.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.35 | ||
| EV/EBITDA | 14.66 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MDT does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of MDT may justify a higher PE ratio.
PEG (NY)5.05
PEG (5Y)4.96
EPS Next 2Y6.02%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.80%, MDT has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.20, MDT pays a better dividend. On top of this MDT pays more dividend than 98.37% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, MDT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
- The dividend of MDT has a limited annual growth rate of 5.10%.
- MDT has paid a dividend for at least 10 years, which is a reliable track record.
- MDT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.1%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- MDT pays out 75.86% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of MDT is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP75.86%
EPS Next 2Y6.02%
EPS Next 3Y6.42%
MEDTRONIC PLC / MDT FAQ
What is the fundamental rating for MDT stock?
ChartMill assigns a fundamental rating of 6 / 10 to MDT.
What is the valuation status for MDT stock?
ChartMill assigns a valuation rating of 6 / 10 to MEDTRONIC PLC (MDT). This can be considered as Fairly Valued.
What is the profitability of MDT stock?
MEDTRONIC PLC (MDT) has a profitability rating of 8 / 10.
What is the valuation of MEDTRONIC PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MEDTRONIC PLC (MDT) is 18.29 and the Price/Book (PB) ratio is 2.71.
What is the earnings growth outlook for MEDTRONIC PLC?
The Earnings per Share (EPS) of MEDTRONIC PLC (MDT) is expected to grow by 3.62% in the next year.