MEDTRONIC PLC (MDT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MDT - IE00BTN1Y115 - Common Stock
96.06 USD
-0.6 (-0.62%)
96.06 USD
0 (0%)
Overall MDT gets a fundamental rating of 6 out of 10. We evaluated MDT against 186 industry peers in the Health Care Equipment & Supplies industry. MDT scores excellent on profitability, but 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. This makes MDT very considerable for dividend investing!
1. Profitability
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.
Each year in the past 5 years MDT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.22%, MDT belongs to the best of the industry, outperforming 81.72% of the companies in the same industry.
MDT's Return On Equity of 9.79% is amongst the best of the industry. MDT outperforms 85.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.63%, MDT belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
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's Profit Margin of 13.71% is amongst the best of the industry. MDT outperforms 89.78% of its industry peers.
MDT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.42%, MDT belongs to the top of the industry, outperforming 93.01% of the companies in the same industry.
MDT's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 65.57%, MDT is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
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
MDT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MDT has less shares outstanding
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.
2.2 Solvency
An Altman-Z score of 3.03 indicates that MDT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.03, MDT is in the better half of the industry, outperforming 71.51% of the companies in the same industry.
The Debt to FCF ratio of MDT is 5.59, which is a neutral value as it means it would take MDT, 5.59 years of fcf income to pay off 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 78.49% 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.
The Debt to Equity ratio of MDT (0.57) is worse than 60.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.03 |
ROIC/WACC1
WACC6.6%
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.
Looking at the Current ratio, with a value of 2.42, MDT is in line with its industry, outperforming 50.00% 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.
The Quick ratio of MDT (1.80) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.24% over the past year.
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 5.34% in the last 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
The Earnings Per Share is expected to grow by 6.35% on average over the next years.
The Revenue is expected to grow by 5.79% on average over the next years.
EPS Next Y3.64%
EPS Next 2Y6%
EPS Next 3Y6.38%
EPS Next 5Y6.35%
Revenue Next Year7.65%
Revenue Next 2Y6.76%
Revenue Next 3Y6.25%
Revenue Next 5Y5.79%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 17.06, MDT is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 84.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. MDT is valued slightly cheaper when compared to this.
MDT is valuated correctly with a Price/Forward Earnings ratio of 15.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 86.56% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, MDT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 15.54 |
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 82.26% of the companies listed in the same industry.
MDT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MDT is cheaper than 84.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.66 | ||
| EV/EBITDA | 14.01 |
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)4.69
PEG (5Y)4.63
EPS Next 2Y6%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.92%, MDT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.20, MDT pays a better dividend. On top of this MDT pays more dividend than 98.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, MDT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
5.2 History
The dividend of MDT has a limited annual growth rate of 5.10%.
MDT has paid a dividend for at least 10 years, which is 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, but earnings are growing more, so the dividend growth is sustainable.
DP75.86%
EPS Next 2Y6%
EPS Next 3Y6.38%
96.06
-0.6 (-0.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners87.76%
Inst Owner Change0.47%
Ins Owners0.28%
Ins Owner Change3.68%
Market Cap123.15B
Revenue(TTM)34.76B
Net Income(TTM)4.76B
Analysts73.33
Price Target112.26 (16.86%)
Short Float %1.18%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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)8.82%
PT rev (3m)11.63%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0.31%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 15.54 | ||
| P/S | 3.54 | ||
| P/FCF | 23.66 | ||
| P/OCF | 17.31 | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.01 |
EPS(TTM)5.63
EY5.86%
EPS(NY)6.18
Fwd EY6.43%
FCF(TTM)4.06
FCFY4.23%
OCF(TTM)5.55
OCFY5.78%
SpS27.11
BVpS37.95
TBVpS-3.06
PEG (NY)4.69
PEG (5Y)4.63
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 | 3.03 |
F-Score8
WACC6.6%
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 5Y6.35%
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 5Y5.79%
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 17.06 and the Price/Book (PB) ratio is 2.53.
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.