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MEDTRONIC PLC (MDT) Stock Fundamental Analysis

NYSE:MDT - New York Stock Exchange, Inc. - IE00BTN1Y115 - Common Stock - Currency: USD

89.92  +0.52 (+0.58%)

After market: 88.95 -0.97 (-1.08%)

Fundamental Rating

6

MDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. While MDT belongs to the best of the industry regarding profitability, 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. These ratings would make MDT suitable for dividend investing!


Dividend Valuation Growth Profitability Health

8

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.
In the past 5 years MDT has always been profitable.
In the past 5 years MDT always reported a positive cash flow from operatings.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

MDT has a Return On Assets of 5.09%. This is amongst the best in the industry. MDT outperforms 84.49% of its industry peers.
The Return On Equity of MDT (9.71%) is better than 85.03% of its industry peers.
The Return On Invested Capital of MDT (6.74%) is better than 81.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MDT is in line with the industry average of 7.89%.
The last Return On Invested Capital (6.74%) for MDT is above the 3 year average (6.40%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.09%
ROE 9.71%
ROIC 6.74%
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.4%
ROIC(5y)6.26%
MDT Yearly ROA, ROE, ROICMDT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

1.3 Margins

MDT's Profit Margin of 13.90% is amongst the best of the industry. MDT outperforms 91.98% of its industry peers.
MDT's Profit Margin has declined in the last couple of years.
MDT has a better Operating Margin (19.80%) than 93.05% of its industry peers.
MDT's Operating Margin has been stable in the last couple of years.
The Gross Margin of MDT (65.48%) is better than 68.45% 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 RankSector Rank
OM 19.8%
PM (TTM) 13.9%
GM 65.48%
OM growth 3Y-2.78%
OM growth 5Y0.8%
PM growth 3Y-4.39%
PM growth 5Y-3.44%
GM growth 3Y-1.44%
GM growth 5Y-0.69%
MDT Yearly Profit, Operating, Gross MarginsMDT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

5

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.
The debt/assets ratio for MDT is higher compared to a year ago.
MDT Yearly Shares OutstandingMDT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
MDT Yearly Total Debt VS Total AssetsMDT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

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.
Looking at the Altman-Z score, with a value of 2.80, MDT is in the better half of the industry, outperforming 67.38% of the companies in the same industry.
The Debt to FCF ratio of MDT is 5.50, which is a neutral value as it means it would take MDT, 5.50 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.50, MDT belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that MDT is somewhat dependend on debt financing.
MDT has a worse Debt to Equity ratio (0.53) than 64.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 5.5
Altman-Z 2.8
ROIC/WACC1.03
WACC6.54%
MDT Yearly LT Debt VS Equity VS FCFMDT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.3 Liquidity

A Current Ratio of 1.85 indicates that MDT should not have too much problems paying its short term obligations.
The Current ratio of MDT (1.85) is worse than 68.98% of its industry peers.
A Quick Ratio of 1.42 indicates that MDT should not have too much problems paying its short term obligations.
MDT's Quick ratio of 1.42 is on the low side compared to the rest of the industry. MDT is outperformed by 61.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.85
Quick Ratio 1.42
MDT Yearly Current Assets VS Current LiabilitesMDT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

4

3. Growth

3.1 Past

MDT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.57%.
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.
Looking at the last year, MDT shows a small growth in Revenue. The Revenue has grown by 3.62% in the last year.
The Revenue has been growing slightly by 3.01% on average over the past years.
EPS 1Y (TTM)5.57%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%10.96%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%3.94%

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 6.26% on average per year.
MDT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.13% yearly.
EPS Next Y1.88%
EPS Next 2Y4.84%
EPS Next 3Y5.77%
EPS Next 5Y6.26%
Revenue Next Year5.38%
Revenue Next 2Y5.33%
Revenue Next 3Y5.13%
Revenue Next 5Y5.13%

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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.35, which indicates a correct valuation of MDT.
MDT's Price/Earnings ratio is rather cheap when compared to the industry. MDT is cheaper than 83.96% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MDT is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.05, MDT is valued correctly.
83.42% of the companies in the same industry are more expensive than MDT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, MDT is valued a bit cheaper.
Industry RankSector Rank
PE 16.35
Fwd PE 16.05
MDT Price Earnings VS Forward Price EarningsMDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 83.42% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 87.70% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 22.24
EV/EBITDA 13.41
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.
The excellent profitability rating of MDT may justify a higher PE ratio.
PEG (NY)8.71
PEG (5Y)4.44
EPS Next 2Y4.84%
EPS Next 3Y5.77%

7

5. Dividend

5.1 Amount

MDT has a Yearly Dividend Yield of 3.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.77, MDT pays a better dividend. On top of this MDT pays more dividend than 98.40% of the companies listed in the same industry.
MDT's Dividend Yield is a higher than the S&P500 average which is at 2.37.
Industry RankSector Rank
Dividend Yield 3.21%

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 Years11
Div Non Decr Years11
MDT Yearly Dividends per shareMDT Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

MDT pays out 76.97% 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.
DP76.97%
EPS Next 2Y4.84%
EPS Next 3Y5.77%
MDT Yearly Income VS Free CF VS DividendMDT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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

MEDTRONIC PLC

NYSE:MDT (7/11/2025, 9:56:17 PM)

After market: 88.95 -0.97 (-1.08%)

89.92

+0.52 (+0.58%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)05-21 2025-05-21/bmo
Earnings (Next)08-19 2025-08-19/bmo
Inst Owners86.84%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change2.29%
Market Cap115.33B
Analysts73.85
Price Target97.1 (7.98%)
Short Float %0.66%
Short Ratio1.08
Dividend
Industry RankSector Rank
Dividend Yield 3.21%
Yearly Dividend2.77
Dividend Growth(5Y)5.1%
DP76.97%
Div Incr Years11
Div Non Decr Years11
Ex-Date06-27 2025-06-27 (0.71)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.4%
Min EPS beat(2)1.21%
Max EPS beat(2)1.59%
EPS beat(4)3
Avg EPS beat(4)1.09%
Min EPS beat(4)-0.08%
Max EPS beat(4)1.65%
EPS beat(8)6
Avg EPS beat(8)2.27%
EPS beat(12)8
Avg EPS beat(12)1.68%
EPS beat(16)10
Avg EPS beat(16)1.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)0.17%
Revenue beat(4)3
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.59%
Revenue beat(8)6
Avg Revenue beat(8)0.24%
Revenue beat(12)9
Avg Revenue beat(12)0.4%
Revenue beat(16)10
Avg Revenue beat(16)-0.28%
PT rev (1m)-0.89%
PT rev (3m)-1%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-7.12%
EPS NY rev (1m)-4.83%
EPS NY rev (3m)-4.95%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.89%
Valuation
Industry RankSector Rank
PE 16.35
Fwd PE 16.05
P/S 3.44
P/FCF 22.24
P/OCF 16.37
P/B 2.4
P/tB N/A
EV/EBITDA 13.41
EPS(TTM)5.5
EY6.12%
EPS(NY)5.6
Fwd EY6.23%
FCF(TTM)4.04
FCFY4.5%
OCF(TTM)5.49
OCFY6.11%
SpS26.15
BVpS37.44
TBVpS-4.19
PEG (NY)8.71
PEG (5Y)4.44
Profitability
Industry RankSector Rank
ROA 5.09%
ROE 9.71%
ROCE 8.43%
ROIC 6.74%
ROICexc 7.61%
ROICexgc 32.33%
OM 19.8%
PM (TTM) 13.9%
GM 65.48%
FCFM 15.46%
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.4%
ROIC(5y)6.26%
ROICexc(3y)7.14%
ROICexc(5y)7.08%
ROICexgc(3y)30.08%
ROICexgc(5y)33.46%
ROCE(3y)8%
ROCE(5y)7.83%
ROICexcg growth 3Y-10.99%
ROICexcg growth 5Y-5.11%
ROICexc growth 3Y-1.79%
ROICexc growth 5Y3.7%
OM growth 3Y-2.78%
OM growth 5Y0.8%
PM growth 3Y-4.39%
PM growth 5Y-3.44%
GM growth 3Y-1.44%
GM growth 5Y-0.69%
F-Score6
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 5.5
Debt/EBITDA 2.7
Cap/Depr 64.98%
Cap/Sales 5.54%
Interest Coverage 8.72
Cash Conversion 74.12%
Profit Quality 111.2%
Current Ratio 1.85
Quick Ratio 1.42
Altman-Z 2.8
F-Score6
WACC6.54%
ROIC/WACC1.03
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)5.57%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%10.96%
EPS Next Y1.88%
EPS Next 2Y4.84%
EPS Next 3Y5.77%
EPS Next 5Y6.26%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%3.94%
Revenue Next Year5.38%
Revenue Next 2Y5.33%
Revenue Next 3Y5.13%
Revenue Next 5Y5.13%
EBIT growth 1Y8.51%
EBIT growth 3Y-0.93%
EBIT growth 5Y3.84%
EBIT Next Year19.91%
EBIT Next 3Y10.12%
EBIT Next 5Y8.8%
FCF growth 1Y-0.29%
FCF growth 3Y-4.64%
FCF growth 5Y-2.95%
OCF growth 1Y3.79%
OCF growth 3Y-1.39%
OCF growth 5Y-0.53%