MEDTRONIC PLC (MDT) Fundamental Analysis & Valuation

NYSE:MDT • IE00BTN1Y115

Current stock price

81.9 USD
-1.02 (-1.23%)
At close:
81.65 USD
-0.25 (-0.31%)
Pre-Market:

This MDT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. MDT Profitability Analysis

1.1 Basic Checks

  • MDT had positive earnings in the past year.
  • MDT had a positive operating cash flow in the past year.
  • Each year in the past 5 years MDT has been profitable.
  • MDT had a positive operating cash flow in each of the past 5 years.
MDT Yearly Net Income VS EBIT VS OCF VS FCFMDT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • MDT's Return On Assets of 5.04% is amongst the best of the industry. MDT outperforms 80.21% of its industry peers.
  • MDT has a Return On Equity of 9.42%. This is amongst the best in the industry. MDT outperforms 81.28% of its industry peers.
  • MDT has a better Return On Invested Capital (6.57%) than 80.75% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MDT is below the industry average of 9.12%.
  • The last Return On Invested Capital (6.57%) for MDT is above the 3 year average (6.35%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.04%
ROE 9.42%
ROIC 6.57%
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.35%
ROIC(5y)6.24%
MDT Yearly ROA, ROE, ROICMDT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

1.3 Margins

  • MDT's Profit Margin of 13.00% is amongst the best of the industry. MDT outperforms 88.24% of its industry peers.
  • In the last couple of years the Profit Margin of MDT has declined.
  • MDT's Operating Margin of 18.98% is amongst the best of the industry. MDT outperforms 91.44% of its industry peers.
  • In the last couple of years the Operating Margin of MDT has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 65.16%, MDT is in the better half of the industry, outperforming 69.52% of the companies in the same industry.
  • In the last couple of years the Gross Margin of MDT has remained more or less at the same level.
Industry RankSector Rank
OM 18.98%
PM (TTM) 13%
GM 65.16%
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%
MDT Yearly Profit, Operating, Gross MarginsMDT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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5

2. MDT Health Analysis

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.
  • The number of shares outstanding for MDT has been reduced compared to 5 years ago.
  • The debt/assets ratio for MDT is higher compared to a year ago.
MDT Yearly Shares OutstandingMDT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
MDT Yearly Total Debt VS Total AssetsMDT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.2 Solvency

  • MDT has an Altman-Z score of 2.80. This is not the best score and indicates that MDT is in the grey zone with still only limited risk for bankruptcy at the moment.
  • The Altman-Z score of MDT (2.80) is better than 66.31% of its industry peers.
  • The Debt to FCF ratio of MDT is 5.19, which is a neutral value as it means it would take MDT, 5.19 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of MDT (5.19) is better than 75.40% of its industry peers.
  • MDT has a Debt/Equity ratio of 0.57. This is a neutral value indicating MDT is somewhat dependend on debt financing.
  • MDT has a worse Debt to Equity ratio (0.57) than 62.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF 5.19
Altman-Z 2.8
ROIC/WACC1
WACC6.58%
MDT Yearly LT Debt VS Equity VS FCFMDT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.3 Liquidity

  • A Current Ratio of 2.54 indicates that MDT has no problem at all paying its short term obligations.
  • MDT has a Current ratio (2.54) which is comparable to the rest of the industry.
  • MDT has a Quick Ratio of 1.87. This is a normal value and indicates that MDT is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.87, MDT is in line with its industry, outperforming 47.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.54
Quick Ratio 1.87
MDT Yearly Current Assets VS Current LiabilitesMDT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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4

3. MDT Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.87% over the past year.
  • MDT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.68% yearly.
  • Looking at the last year, MDT shows a small growth in Revenue. The Revenue has grown by 6.88% in the last year.
  • The Revenue has been growing slightly by 3.01% on average over the past years.
EPS 1Y (TTM)4.87%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%-2.16%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%8.74%

3.2 Future

  • MDT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.97% yearly.
  • Based on estimates for the next years, MDT will show a small growth in Revenue. The Revenue will grow by 5.28% on average per year.
EPS Next Y2.83%
EPS Next 2Y5.59%
EPS Next 3Y6.24%
EPS Next 5Y6.97%
Revenue Next Year7.95%
Revenue Next 2Y7.24%
Revenue Next 3Y6.44%
Revenue Next 5Y5.28%

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.
MDT Yearly Revenue VS EstimatesMDT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
MDT Yearly EPS VS EstimatesMDT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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6

4. MDT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 14.63, MDT is valued correctly.
  • 88.24% of the companies in the same industry are more expensive than MDT, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.91. MDT is valued slightly cheaper when compared to this.
  • The Price/Forward Earnings ratio is 13.36, which indicates a correct valuation of MDT.
  • Based on the Price/Forward Earnings ratio, MDT is valued cheaply inside the industry as 88.77% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of MDT to the average of the S&P500 Index (21.99), we can say MDT is valued slightly cheaper.
Industry RankSector Rank
PE 14.63
Fwd PE 13.36
MDT Price Earnings VS Forward Price EarningsMDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • MDT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MDT is cheaper than 86.63% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, MDT is valued cheaper than 89.30% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.44
EV/EBITDA 11.98
MDT Per share dataMDT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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.
  • MDT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.16
PEG (5Y)3.97
EPS Next 2Y5.59%
EPS Next 3Y6.24%

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7

5. MDT Dividend Analysis

5.1 Amount

  • MDT has a Yearly Dividend Yield of 3.39%. Purely for dividend investing, there may be better candidates out there.
  • The stock price of MDT dropped by -20.45% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 0.25, MDT pays a better dividend. On top of this MDT pays more dividend than 97.86% of the companies listed in the same industry.
  • MDT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.39%

5.2 History

  • The dividend of MDT has a limited annual growth rate of 5.10%.
  • MDT has been paying a dividend for at least 10 years, so it has a reliable track record.
  • MDT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.1%
Div Incr Years12
Div Non Decr Years12
MDT Yearly Dividends per shareMDT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • MDT pays out 78.65% of its income as dividend. This is not a sustainable payout ratio.
  • MDT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.65%
EPS Next 2Y5.59%
EPS Next 3Y6.24%
MDT Yearly Income VS Free CF VS DividendMDT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
MDT Dividend Payout.MDT Dividend Payout, showing the Payout Ratio.MDT Dividend Payout.PayoutRetained Earnings

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MDT Fundamentals: All Metrics, Ratios and Statistics

MEDTRONIC PLC

NYSE:MDT (4/28/2026, 8:04:00 PM)

Premarket: 81.65 -0.25 (-0.31%)

81.9

-1.02 (-1.23%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Industry Strength42.57
Industry Growth70
Earnings (Last)02-17
Earnings (Next)06-03
Inst Owners87.92%
Inst Owner Change-0.17%
Ins Owners0.28%
Ins Owner Change-1.38%
Market Cap105.15B
Revenue(TTM)35.48B
Net Income(TTM)4.61B
Analysts76.22
Price Target111.21 (35.79%)
Short Float %1.21%
Short Ratio1.83
Dividend
Industry RankSector Rank
Dividend Yield 3.39%
Yearly Dividend2.77
Dividend Growth(5Y)5.1%
DP78.65%
Div Incr Years12
Div Non Decr Years12
Ex-Date03-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.66%
Min EPS beat(2)0.89%
Max EPS beat(2)2.43%
EPS beat(4)4
Avg EPS beat(4)1.6%
Min EPS beat(4)0.89%
Max EPS beat(4)2.43%
EPS beat(8)6
Avg EPS beat(8)1.11%
EPS beat(12)9
Avg EPS beat(12)1.9%
EPS beat(16)11
Avg EPS beat(16)1.33%
Revenue beat(2)2
Avg Revenue beat(2)0.17%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.26%
Revenue beat(4)4
Avg Revenue beat(4)0.35%
Min Revenue beat(4)0.08%
Max Revenue beat(4)0.91%
Revenue beat(8)7
Avg Revenue beat(8)0.23%
Revenue beat(12)10
Avg Revenue beat(12)0.48%
Revenue beat(16)12
Avg Revenue beat(16)0.07%
PT rev (1m)-1.8%
PT rev (3m)-0.45%
EPS NQ rev (1m)-3.95%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
Industry RankSector Rank
PE 14.63
Fwd PE 13.36
P/S 2.96
P/FCF 19.44
P/OCF 14.44
P/B 2.15
P/tB N/A
EV/EBITDA 11.98
EPS(TTM)5.6
EY6.84%
EPS(NY)6.13
Fwd EY7.49%
FCF(TTM)4.21
FCFY5.14%
OCF(TTM)5.67
OCFY6.93%
SpS27.64
BVpS38.15
TBVpS-2.53
PEG (NY)5.16
PEG (5Y)3.97
Graham Number69.3353 (-15.34%)
Profitability
Industry RankSector Rank
ROA 5.04%
ROE 9.42%
ROCE 8.21%
ROIC 6.57%
ROICexc 7.32%
ROICexgc 25.19%
OM 18.98%
PM (TTM) 13%
GM 65.16%
FCFM 15.24%
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.35%
ROIC(5y)6.24%
ROICexc(3y)7.09%
ROICexc(5y)7.05%
ROICexgc(3y)29.85%
ROICexgc(5y)33.32%
ROCE(3y)7.94%
ROCE(5y)7.8%
ROICexgc growth 3Y-11.61%
ROICexgc growth 5Y-5.52%
ROICexc growth 3Y-2.49%
ROICexc growth 5Y3.26%
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%
F-Score7
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF 5.19
Debt/EBITDA 2.84
Cap/Depr 60.84%
Cap/Sales 5.28%
Interest Coverage 8.77
Cash Conversion 74.21%
Profit Quality 117.26%
Current Ratio 2.54
Quick Ratio 1.87
Altman-Z 2.8
F-Score7
WACC6.58%
ROIC/WACC1
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)4.87%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%-2.16%
EPS Next Y2.83%
EPS Next 2Y5.59%
EPS Next 3Y6.24%
EPS Next 5Y6.97%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%8.74%
Revenue Next Year7.95%
Revenue Next 2Y7.24%
Revenue Next 3Y6.44%
Revenue Next 5Y5.28%
EBIT growth 1Y4.15%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year18.42%
EBIT Next 3Y11.24%
EBIT Next 5Y8.65%
FCF growth 1Y9.67%
FCF growth 3Y-4.64%
FCF growth 5Y-2.95%
OCF growth 1Y12.56%
OCF growth 3Y-1.39%
OCF growth 5Y-0.53%

MEDTRONIC PLC / MDT Fundamental Analysis 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.


Can you provide the profitability details for MEDTRONIC PLC?

MEDTRONIC PLC (MDT) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for MDT stock?

The Price/Earnings (PE) ratio for MEDTRONIC PLC (MDT) is 14.63 and the Price/Book (PB) ratio is 2.15.


Can you provide the dividend sustainability for MDT stock?

The dividend rating of MEDTRONIC PLC (MDT) is 7 / 10 and the dividend payout ratio is 78.65%.