MEDTRONIC PLC (MDT)
IE00BTN1Y115 - Common Stock
Taking everything into account, MDT scores 5 out of 10 in our fundamental rating. MDT was compared to 187 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. Finally MDT also has an excellent dividend rating.
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.
Each year in the past 5 years MDT has been profitable.
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 82.35% of the companies in the same industry.
MDT has a better Return On Equity (8.84%) than 83.96% of its industry peers.
MDT has a better Return On Invested Capital (5.94%) than 80.21% of its industry peers.
MDT had an Average Return On Invested Capital over the past 3 years of 5.95%. This is below the industry average of 8.19%.
| 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
The Profit Margin of MDT (13.00%) is better than 89.30% of its industry peers.
In the last couple of years the Profit Margin of MDT has declined.
MDT has a Operating Margin of 19.06%. This is amongst the best in the industry. MDT outperforms 91.98% of its industry peers.
MDT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 65.39%, MDT is in the better half of the industry, outperforming 67.91% of the companies in the same industry.
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.
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
MDT has an Altman-Z score of 2.72. 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 has a Altman-Z score of 2.72. This is in the better half of the industry: MDT outperforms 64.17% 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.
The Debt to FCF ratio of MDT (5.15) is better than 79.68% of its industry peers.
MDT has a Debt/Equity ratio of 0.51. This is a neutral value indicating MDT is somewhat dependend on debt financing.
The Debt to Equity ratio of MDT (0.51) is worse than 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.15 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.94
WACC6.35%
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.
MDT has a Current ratio of 1.84. This is in the lower half of the industry: MDT underperforms 70.59% of its industry peers.
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.
The Quick ratio of MDT (1.39) is worse than 64.71% 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.
The Earnings Per Share has been decreasing by -0.04% on average over the past years.
The Revenue has been growing slightly by 3.25% in the past year.
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
MDT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.85% yearly.
MDT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.83% yearly.
EPS Next Y5.7%
EPS Next 2Y6.39%
EPS Next 3Y6.86%
EPS Next 5Y6.85%
Revenue Next Year4.13%
Revenue Next 2Y4.36%
Revenue Next 3Y4.58%
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.
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
MDT is valuated correctly with a Price/Earnings ratio of 15.53.
Based on the Price/Earnings ratio, MDT is valued cheaper than 91.44% 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 27.54.
A Price/Forward Earnings ratio of 13.83 indicates a correct valuation of MDT.
Based on the Price/Forward Earnings ratio, MDT is valued cheaply inside the industry as 91.44% of the companies are valued more expensively.
MDT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
MDT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MDT is cheaper than 87.70% of the companies in the same industry.
MDT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MDT is cheaper than 91.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.01 | ||
| EV/EBITDA | 13.25 |
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.
MDT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)N/A
EPS Next 2Y6.39%
EPS Next 3Y6.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, 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 1.68. MDT pays more dividend than 99.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MDT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
5.2 History
On average, the dividend of MDT grows each year by 6.78%, which is quite nice.
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)6.78%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
MDT pays out 84.54% of its income as dividend. 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.
DP84.54%
EPS Next 2Y6.39%
EPS Next 3Y6.86%
MEDTRONIC PLC
NYSE:MDT (12/24/2024, 8:27:04 PM)
After market: 81.54 0 (0%)81.54
+0.14 (+0.17%)
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-1.01%
Ins Owners0.24%
Ins Owner Change4.19%
Market Cap104.56B
Analysts71.35
Price Target97.61 (19.71%)
Short Float %0.78%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Dividend Growth(5Y)6.78%
DP84.54%
Div Incr Years10
Div Non Decr Years10
Ex-Date
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)0.03%
PT rev (3m)1.95%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-1.44%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 13.83 | ||
| P/S | 3.17 | ||
| P/FCF | 19.01 | ||
| P/OCF | 14.53 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.25 |
EPS(TTM)5.25
EY6.44%
EPS(NY)5.9
Fwd EY7.23%
FCF(TTM)4.29
FCFY5.26%
OCF(TTM)5.61
OCFY6.88%
SpS25.73
BVpS37.82
TBVpS-3.97
PEG (NY)2.72
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 | 2.72 |
F-Score6
WACC6.35%
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 Year4.13%
Revenue Next 2Y4.36%
Revenue Next 3Y4.58%
Revenue Next 5Y4.83%
EBIT growth 1Y-2.15%
EBIT growth 3Y4.3%
EBIT growth 5Y-2.37%
EBIT Next Year17.9%
EBIT Next 3Y10.63%
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%