MEDTRONIC PLC (MDT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MDT - IE00BTN1Y115 - Common Stock
98.6 USD
+1.84 (+1.9%)
98.35 USD
-0.25 (-0.25%)
MDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 186 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. 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.
- MDT had a positive operating cash flow in the past year.
- Each year in the past 5 years MDT has been profitable.
- In the past 5 years MDT always reported a positive cash flow from operatings.
1.2 Ratios
- MDT has a better Return On Assets (5.22%) than 81.72% of its industry peers.
- With an excellent Return On Equity value of 9.79%, MDT belongs to the best of the industry, outperforming 85.48% of the companies in the same industry.
- The Return On Invested Capital of MDT (6.63%) is better than 81.18% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MDT is below the industry average of 8.84%.
- The last Return On Invested Capital (6.63%) for MDT is above the 3 year average (6.35%), which is a sign of increasing profitability.
| 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
- The Profit Margin of MDT (13.71%) is better than 89.78% of its industry peers.
- In the last couple of years the Profit Margin of MDT has declined.
- MDT's Operating Margin of 19.42% is amongst the best of the industry. MDT outperforms 93.01% of its industry peers.
- MDT's Operating Margin has been stable in the last couple of years.
- MDT has a Gross Margin of 65.57%. This is in the better half of the industry: MDT outperforms 69.89% 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 | 19.42% | ||
| 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 below the Cost of Capital (WACC), which means it is destroying value.
- MDT has less shares outstanding than it did 1 year ago.
- 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 3.08 indicates that MDT is not in any danger for bankruptcy at the moment.
- The Altman-Z score of MDT (3.08) is better than 68.82% of its industry peers.
- 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.
- With a decent Debt to FCF ratio value of 5.59, MDT is doing good in the industry, outperforming 78.49% of the companies in the same industry.
- 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: 61.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.96
WACC6.9%
2.3 Liquidity
- A Current Ratio of 2.42 indicates that MDT has no problem at all paying its short term obligations.
- MDT's Current ratio of 2.42 is in line compared to the rest of the industry. MDT outperforms 48.92% of its industry peers.
- MDT has a Quick Ratio of 1.80. This is a normal value and indicates that MDT is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.80, MDT is in line with its industry, outperforming 48.39% 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%.
- MDT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.68% yearly.
- Looking at the last year, MDT shows a small growth in Revenue. The Revenue has grown by 5.34% in the last year.
- The Revenue has been growing slightly by 3.01% on average over the past years.
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
- MDT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.08% yearly.
- MDT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.80% yearly.
EPS Next Y3.64%
EPS Next 2Y6%
EPS Next 3Y6.38%
EPS Next 5Y6.08%
Revenue Next Year7.67%
Revenue Next 2Y6.75%
Revenue Next 3Y6.25%
Revenue Next 5Y5.8%
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.
4. Valuation
4.1 Price/Earnings Ratio
- MDT is valuated rather expensively with a Price/Earnings ratio of 17.51.
- Based on the Price/Earnings ratio, MDT is valued cheaply inside the industry as 84.95% of the companies are valued more expensively.
- MDT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.94.
- With a Price/Forward Earnings ratio of 15.95, MDT is valued correctly.
- Based on the Price/Forward Earnings ratio, MDT is valued cheaper than 86.56% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. MDT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.95 |
4.2 Price Multiples
- 82.80% of the companies in the same industry are more expensive than MDT, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, MDT is valued cheaply inside the industry as 84.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.28 | ||
| EV/EBITDA | 14.35 |
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)4.81
PEG (5Y)4.75
EPS Next 2Y6%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.87%, 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 98.39% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, MDT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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 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
5.3 Sustainability
- 75.86% of the earnings are spent on dividend by MDT. 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%
98.6
+1.84 (+1.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-18 2025-11-18/bmo
Earnings (Next)02-17 2026-02-17/bmo
Inst Owners88.22%
Inst Owner Change0.23%
Ins Owners0.28%
Ins Owner Change3.68%
Market Cap126.41B
Revenue(TTM)34.76B
Net Income(TTM)4.76B
Analysts74.21
Price Target111.71 (13.3%)
Short Float %1.13%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)0.1%
PT rev (3m)11.09%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.95 | ||
| P/S | 3.64 | ||
| P/FCF | 24.28 | ||
| P/OCF | 17.77 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.35 |
EPS(TTM)5.63
EY5.71%
EPS(NY)6.18
Fwd EY6.27%
FCF(TTM)4.06
FCFY4.12%
OCF(TTM)5.55
OCFY5.63%
SpS27.11
BVpS37.95
TBVpS-3.06
PEG (NY)4.81
PEG (5Y)4.75
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 | 3.08 |
F-Score8
WACC6.9%
ROIC/WACC0.96
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 Year7.67%
Revenue Next 2Y6.75%
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 17.51 and the Price/Book (PB) ratio is 2.6.
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.