MEDTRONIC PLC (MDT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MDT - IE00BTN1Y115 - Common Stock
97.53 USD
-1.16 (-1.18%)
97.53 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to MDT. MDT was compared to 185 industry peers in the Health Care Equipment & Supplies industry. MDT has an excellent profitability rating, but there are some minor concerns on its financial health. MDT is not valued too expensively and it also shows a decent growth rate. Finally 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
Looking at the Return On Assets, with a value of 5.22%, MDT belongs to the top of the industry, outperforming 81.62% of the companies in the same industry.
With an excellent Return On Equity value of 9.79%, MDT belongs to the best of the industry, outperforming 85.41% of the companies in the same industry.
The Return On Invested Capital of MDT (6.63%) is better than 81.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MDT is below the industry average of 8.84%.
The 3 year average ROIC (6.35%) for MDT is below the current ROIC(6.63%), indicating increased profibility in the last year.
| 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 89.73% of its industry peers.
MDT's Profit Margin has declined in the last couple of years.
MDT has a Operating Margin of 19.42%. This is amongst the best in the industry. MDT outperforms 92.97% of its industry peers.
In the last couple of years the Operating Margin of MDT has remained more or less at the same level.
MDT's Gross Margin of 65.57% is fine compared to the rest of the industry. MDT outperforms 69.73% of its industry peers.
MDT's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MDT is still creating some 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 3.06 indicates that MDT is not in any danger for bankruptcy at the moment.
MDT has a Altman-Z score of 3.06. This is in the better half of the industry: MDT outperforms 68.65% 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.
MDT has a Debt to FCF ratio of 5.59. This is in the better half of the industry: MDT outperforms 78.92% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that MDT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, MDT is doing worse than 61.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.06 |
ROIC/WACC1
WACC6.61%
2.3 Liquidity
MDT has a Current Ratio of 2.42. This indicates that MDT is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.42, MDT perfoms like the industry average, outperforming 48.65% of the companies in the same industry.
A Quick Ratio of 1.80 indicates that MDT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.80, MDT perfoms like the industry average, outperforming 48.11% of the companies in the same 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.
The Revenue has been growing slightly by 5.34% in the past year.
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
Based on estimates for the next years, MDT will show a small growth in Earnings Per Share. The EPS will grow by 6.08% on average per year.
Based on estimates for the next years, MDT will show a small growth in Revenue. The Revenue will grow by 5.80% on average per year.
EPS Next Y3.64%
EPS Next 2Y6%
EPS Next 3Y6.38%
EPS Next 5Y6.08%
Revenue Next Year7.65%
Revenue Next 2Y6.76%
Revenue Next 3Y6.25%
Revenue Next 5Y5.8%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 17.32, the valuation of MDT can be described as rather expensive.
86.49% of the companies in the same industry are more expensive than MDT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, MDT is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.78, MDT is valued correctly.
Based on the Price/Forward Earnings ratio, MDT is valued cheaply inside the industry as 88.11% of the companies are valued more expensively.
MDT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDT is valued cheaper than 83.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MDT is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.02 | ||
| EV/EBITDA | 14.21 |
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 excellent profitability rating of MDT may justify a higher PE ratio.
PEG (NY)4.76
PEG (5Y)4.7
EPS Next 2Y6%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.88%, MDT has a reasonable but not impressive dividend return.
MDT's Dividend Yield is rather good when compared to the industry average which is at 0.19. MDT pays more dividend than 98.38% of the companies in the same industry.
MDT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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 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%
EPS Next 3Y6.38%
97.53
-1.16 (-1.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.22%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change3.68%
Market Cap125.03B
Revenue(TTM)34.76B
Net Income(TTM)4.76B
Analysts74.21
Price Target112.26 (15.1%)
Short Float %1.18%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend2.77
Dividend Growth(5Y)5.1%
DP75.86%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.96%
Min EPS beat(2)1.49%
Max EPS beat(2)2.43%
EPS beat(4)4
Avg EPS beat(4)1.68%
Min EPS beat(4)1.21%
Max EPS beat(4)2.43%
EPS beat(8)6
Avg EPS beat(8)1.26%
EPS beat(12)9
Avg EPS beat(12)1.96%
EPS beat(16)10
Avg EPS beat(16)1.24%
Revenue beat(2)2
Avg Revenue beat(2)0.49%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.91%
Revenue beat(4)3
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.91%
Revenue beat(8)7
Avg Revenue beat(8)0.29%
Revenue beat(12)10
Avg Revenue beat(12)0.59%
Revenue beat(16)11
Avg Revenue beat(16)-0.1%
PT rev (1m)0.59%
PT rev (3m)11.63%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 15.78 | ||
| P/S | 3.6 | ||
| P/FCF | 24.02 | ||
| P/OCF | 17.58 | ||
| P/B | 2.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.21 |
EPS(TTM)5.63
EY5.77%
EPS(NY)6.18
Fwd EY6.34%
FCF(TTM)4.06
FCFY4.16%
OCF(TTM)5.55
OCFY5.69%
SpS27.11
BVpS37.95
TBVpS-3.06
PEG (NY)4.76
PEG (5Y)4.7
Graham Number69.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.79% | ||
| ROCE | 8.29% | ||
| ROIC | 6.63% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 26.33% | ||
| OM | 19.42% | ||
| PM (TTM) | 13.71% | ||
| GM | 65.57% | ||
| FCFM | 14.98% |
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-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 63.21% | ||
| Cap/Sales | 5.49% | ||
| Interest Coverage | 8.53 | ||
| Cash Conversion | 72.83% | ||
| Profit Quality | 109.28% | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 3.06 |
F-Score8
WACC6.61%
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)7.24%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%7.94%
EPS Next Y3.64%
EPS Next 2Y6%
EPS Next 3Y6.38%
EPS Next 5Y6.08%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%6.64%
Revenue Next Year7.65%
Revenue Next 2Y6.76%
Revenue Next 3Y6.25%
Revenue Next 5Y5.8%
EBIT growth 1Y7.35%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year16.85%
EBIT Next 3Y10.65%
EBIT Next 5Y9.23%
FCF growth 1Y28.67%
FCF growth 3Y-4.64%
FCF growth 5Y-2.95%
OCF growth 1Y27.68%
OCF growth 3Y-1.39%
OCF growth 5Y-0.53%
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 17.32 and the Price/Book (PB) ratio is 2.57.
What is the earnings growth outlook for MEDTRONIC PLC?
The Earnings per Share (EPS) of MEDTRONIC PLC (MDT) is expected to grow by 3.64% in the next year.