MEDTRONIC PLC (MDT) Stock Fundamental Analysis
NYSE:MDT - New York Stock Exchange, Inc. - IE00BTN1Y115 - Common Stock - Currency: USD
Overall MDT gets a fundamental rating of 5 out of 10. We evaluated MDT against 191 industry peers in the Health Care Equipment & Supplies industry. While MDT has a great profitability rating, there are some minor concerns on its financial health. MDT has a decent growth rate and is not valued too expensively. MDT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MDT had positive earnings in the past year.
MDT had a positive operating cash flow in the past year.
MDT had positive earnings in each of the past 5 years.
MDT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.76%, MDT belongs to the best of the industry, outperforming 82.63% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.84%, MDT belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
MDT has a better Return On Invested Capital (5.94%) than 80.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MDT is below the industry average of 8.09%.
| 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
MDT's Profit Margin of 13.00% is amongst the best of the industry. MDT outperforms 89.47% of its industry peers.
MDT's Profit Margin has declined in the last couple of years.
MDT has a better Operating Margin (19.06%) than 92.11% of its industry peers.
MDT's Operating Margin has declined in the last couple of years.
MDT has a better Gross Margin (65.39%) than 68.42% 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 | 19.06% | ||
| 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
MDT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MDT has been reduced compared to 1 year ago.
Compared to 5 years ago, MDT has less shares outstanding
MDT has a worse debt/assets ratio than last year.
2.2 Solvency
MDT has an Altman-Z score of 2.91. 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.
MDT's Altman-Z score of 2.91 is fine compared to the rest of the industry. MDT outperforms 66.32% of its industry peers.
MDT has a debt to FCF ratio of 5.15. This is a neutral value as MDT would need 5.15 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.15, MDT is doing good in the industry, outperforming 79.47% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that MDT is somewhat dependend on debt financing.
MDT has a Debt to Equity ratio of 0.51. This is in the lower half of the industry: MDT underperforms 62.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.15 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.94
WACC6.32%
2.3 Liquidity
MDT has a Current Ratio of 1.84. This is a normal value and indicates that MDT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.84, MDT is not doing good in the industry: 69.47% of the companies in the same industry are doing better.
MDT has a Quick Ratio of 1.39. 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 of 1.39. This is in the lower half of the industry: MDT underperforms 62.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The earnings per share for MDT have decreased by -1.32% in the last year.
Measured over the past years, MDT shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.04% on average per year.
MDT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.25%.
The Revenue has been growing slightly by 1.16% on average over the past years.
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.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y5.7%
EPS Next 2Y6.39%
EPS Next 3Y6.86%
EPS Next 5Y6.85%
Revenue Next Year4.06%
Revenue Next 2Y4.41%
Revenue Next 3Y4.62%
Revenue Next 5Y4.83%
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.
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
A Price/Earnings ratio of 17.41 indicates a rather expensive valuation of MDT.
Based on the Price/Earnings ratio, MDT is valued cheaper than 91.05% of the companies in the same industry.
MDT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.28.
MDT is valuated correctly with a Price/Forward Earnings ratio of 15.50.
Based on the Price/Forward Earnings ratio, MDT is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 91.29, MDT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 15.5 |
4.2 Price Multiples
86.84% of the companies in the same industry are more expensive than MDT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 91.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.32 | ||
| EV/EBITDA | 14.67 |
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 decent profitability rating of MDT may justify a higher PE ratio.
PEG (NY)3.05
PEG (5Y)N/A
EPS Next 2Y6.39%
EPS Next 3Y6.86%
5. Dividend
5.1 Amount
MDT has a Yearly Dividend Yield of 3.14%.
MDT's Dividend Yield is rather good when compared to the industry average which is at 1.60. MDT pays more dividend than 98.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, MDT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
The dividend of MDT is nicely growing with an annual growth rate of 6.78%!
MDT has paid a dividend for at least 10 years, which is 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)6.78%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
84.54% of the earnings are spent on dividend by MDT. This is not a sustainable payout ratio.
MDT'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
NYSE:MDT (1/29/2025, 8:04:00 PM)
After market: 91.42 +0.01 (+0.01%)91.41
-0.57 (-0.62%)
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 Change-0.06%
Ins Owners0.24%
Ins Owner Change5.27%
Market Cap117.21B
Analysts71.35
Price Target97.42 (6.57%)
Short Float %0.77%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend2.77
Dividend Growth(5Y)6.78%
DP84.54%
Div Incr Years10
Div Non Decr Years10
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)-0.19%
PT rev (3m)-0.13%
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)-0.07%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 15.5 | ||
| P/S | 3.55 | ||
| P/FCF | 21.32 | ||
| P/OCF | 16.29 | ||
| P/B | 2.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.67 |
EPS(TTM)5.25
EY5.74%
EPS(NY)5.9
Fwd EY6.45%
FCF(TTM)4.29
FCFY4.69%
OCF(TTM)5.61
OCFY6.14%
SpS25.73
BVpS37.82
TBVpS-3.97
PEG (NY)3.05
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 | 2.91 |
F-Score6
WACC6.32%
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 Year4.06%
Revenue Next 2Y4.41%
Revenue Next 3Y4.62%
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%