MEDTRONIC PLC (MDT) Fundamental Analysis & Valuation

NYSE:MDT • IE00BTN1Y115

Current stock price

87.21 USD
-0.7 (-0.8%)
At close:
86.94 USD
-0.27 (-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.

7

1. MDT Profitability Analysis

1.1 Basic Checks

  • In the past year MDT was profitable.
  • In the past year MDT had a positive cash flow from operations.
  • MDT had positive earnings in each of the past 5 years.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • MDT has a Return On Assets of 5.04%. This is in the better half of the industry: MDT outperforms 79.79% of its industry peers.
  • The Return On Equity of MDT (9.42%) is better than 80.85% of its industry peers.
  • MDT has a Return On Invested Capital of 6.57%. This is amongst the best in the industry. MDT outperforms 80.32% of its industry peers.
  • MDT had an Average Return On Invested Capital over the past 3 years of 6.35%. This is below the industry average of 9.15%.
  • The 3 year average ROIC (6.35%) for MDT is below the current ROIC(6.57%), indicating increased profibility in the last year.
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

  • The Profit Margin of MDT (13.00%) is better than 87.77% of its industry peers.
  • In the last couple of years the Profit Margin of MDT has declined.
  • MDT has a Operating Margin of 18.98%. This is amongst the best in the industry. MDT outperforms 90.96% 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 has a better Gross Margin (65.16%) than 70.74% of its industry peers.
  • MDT's Gross Margin has been stable in the last couple of years.
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

  • 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.
  • 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 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

  • An Altman-Z score of 2.90 indicates that MDT is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of MDT (2.90) is better than 69.15% of its industry peers.
  • MDT has a debt to FCF ratio of 5.19. This is a neutral value as MDT would need 5.19 years to pay back of all of its debts.
  • MDT has a better Debt to FCF ratio (5.19) than 75.00% 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.
  • With a Debt to Equity ratio value of 0.57, MDT is not doing good in the industry: 62.77% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF 5.19
Altman-Z 2.9
ROIC/WACC0.99
WACC6.63%
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.
  • Looking at the Current ratio, with a value of 2.54, MDT is in line with its industry, outperforming 46.81% of the companies in the same 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.
  • MDT has a Quick ratio (1.87) which is comparable to the rest of the 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. MDT Growth Analysis

3.1 Past

  • MDT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.87%.
  • 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 6.88%.
  • MDT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.01% yearly.
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

  • The Earnings Per Share is expected to grow by 7.10% on average over the next years.
  • The Revenue is expected to grow by 6.02% on average over the next years.
EPS Next Y2.83%
EPS Next 2Y5.59%
EPS Next 3Y6.24%
EPS Next 5Y7.1%
Revenue Next Year7.95%
Revenue Next 2Y7.36%
Revenue Next 3Y6.58%
Revenue Next 5Y6.02%

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

  • Based on the Price/Earnings ratio of 15.57, the valuation of MDT can be described as correct.
  • MDT's Price/Earnings ratio is rather cheap when compared to the industry. MDT is cheaper than 87.23% 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 26.86.
  • The Price/Forward Earnings ratio is 14.22, which indicates a correct valuation of MDT.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 88.83% of the companies listed in the same industry.
  • MDT is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.57
Fwd PE 14.22
MDT Price Earnings VS Forward Price EarningsMDT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 84.57% 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 87.77% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.7
EV/EBITDA 12.68
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 an expensive valuation of the company.
  • MDT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.5
PEG (5Y)4.23
EPS Next 2Y5.59%
EPS Next 3Y6.24%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. MDT Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.23%, 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 0.24. MDT pays more dividend than 97.87% of the companies in the same industry.
  • MDT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.23%

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 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

  • 78.65% of the earnings are spent on dividend by MDT. This is not a sustainable payout ratio.
  • The dividend of MDT is growing, but earnings are growing more, so the dividend growth is 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 (4/10/2026, 8:04:00 PM)

Premarket: 86.94 -0.27 (-0.31%)

87.21

-0.7 (-0.8%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-17
Earnings (Next)05-20
Inst Owners87.92%
Inst Owner Change0.01%
Ins Owners0.28%
Ins Owner Change-1.38%
Market Cap111.97B
Revenue(TTM)35.48B
Net Income(TTM)4.61B
Analysts76.22
Price Target112.12 (28.56%)
Short Float %1.3%
Short Ratio1.87
Dividend
Industry RankSector Rank
Dividend Yield 3.23%
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%
PT rev (3m)-0.12%
EPS NQ rev (1m)-2.62%
EPS NQ rev (3m)-4.03%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.27%
Valuation
Industry RankSector Rank
PE 15.57
Fwd PE 14.22
P/S 3.16
P/FCF 20.7
P/OCF 15.37
P/B 2.29
P/tB N/A
EV/EBITDA 12.68
EPS(TTM)5.6
EY6.42%
EPS(NY)6.13
Fwd EY7.03%
FCF(TTM)4.21
FCFY4.83%
OCF(TTM)5.67
OCFY6.51%
SpS27.64
BVpS38.15
TBVpS-2.53
PEG (NY)5.5
PEG (5Y)4.23
Graham Number69.34
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 2.9
F-Score7
WACC6.63%
ROIC/WACC0.99
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 5Y7.1%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%8.74%
Revenue Next Year7.95%
Revenue Next 2Y7.36%
Revenue Next 3Y6.58%
Revenue Next 5Y6.02%
EBIT growth 1Y4.15%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year18.42%
EBIT Next 3Y11.24%
EBIT Next 5Y9.86%
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 7 / 10.


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

The Price/Earnings (PE) ratio for MEDTRONIC PLC (MDT) is 15.57 and the Price/Book (PB) ratio is 2.29.


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%.