MEDTRONIC PLC (MDT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MDT - IE00BTN1Y115 - Common Stock
98.63 USD
+0.15 (+0.15%)
99.03 USD
+0.4 (+0.41%)
We assign a fundamental rating of 6 out of 10 to MDT. MDT was compared to 187 industry peers in the Health Care Equipment & Supplies industry. While MDT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MDT has a correct valuation and a medium 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.
In the past year MDT had a positive cash flow from operations.
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
The Return On Assets of MDT (5.22%) is better than 81.82% of its industry peers.
MDT's Return On Equity of 9.79% is amongst the best of the industry. MDT outperforms 85.56% of its industry peers.
MDT has a better Return On Invested Capital (6.63%) than 81.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MDT is below the industry average of 8.82%.
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
MDT has a Profit Margin of 13.71%. This is amongst the best in the industry. MDT outperforms 89.84% 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 93.05% of the companies in the same industry.
In the last couple of years the Operating Margin of MDT has remained more or less at the same level.
The Gross Margin of MDT (65.57%) is better than 69.52% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MDT is still creating some value.
The number of shares outstanding for MDT has been reduced compared to 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 3.07 indicates that MDT is not in any danger for bankruptcy at the moment.
MDT has a better Altman-Z score (3.07) than 71.66% 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 78.61% 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.
MDT's Debt to Equity ratio of 0.57 is on the low side compared to the rest of the industry. MDT is outperformed by 60.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.07 |
ROIC/WACC1
WACC6.6%
2.3 Liquidity
A Current Ratio of 2.42 indicates that MDT has no problem at all paying its short term obligations.
The Current ratio of MDT (2.42) is comparable to the rest of the industry.
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.
MDT has a Quick ratio of 1.80. This is comparable to the rest of the industry: MDT outperforms 47.59% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 3.68% on average over the past years.
MDT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.34%.
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
Based on estimates for the next years, MDT will show a small growth in Earnings Per Share. The EPS will grow by 6.35% on average per year.
MDT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.79% yearly.
EPS Next Y3.61%
EPS Next 2Y5.98%
EPS Next 3Y6.33%
EPS Next 5Y6.35%
Revenue Next Year7.65%
Revenue Next 2Y6.74%
Revenue Next 3Y6.23%
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
MDT is valuated rather expensively with a Price/Earnings ratio of 17.52.
Compared to the rest of the industry, the Price/Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 83.96% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.38, MDT is valued a bit cheaper.
MDT is valuated correctly with a Price/Forward Earnings ratio of 15.96.
Based on the Price/Forward Earnings ratio, MDT is valued cheaper than 86.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, MDT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 15.96 |
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 82.35% of the companies listed in the same industry.
84.49% of the companies in the same industry are more expensive than MDT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.29 | ||
| EV/EBITDA | 14.33 |
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)4.85
PEG (5Y)4.76
EPS Next 2Y5.98%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.88%, 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 98.40% of the companies in the same industry.
MDT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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 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 2Y5.98%
EPS Next 3Y6.33%
98.63
+0.15 (+0.15%)
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 Change3.79%
Market Cap126.44B
Revenue(TTM)34.76B
Net Income(TTM)4.76B
Analysts73.33
Price Target111.6 (13.15%)
Short Float %1.48%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend2.77
Dividend Growth(5Y)5.1%
DP75.86%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)8.34%
PT rev (3m)10.98%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)-1.13%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 15.96 | ||
| P/S | 3.64 | ||
| P/FCF | 24.29 | ||
| P/OCF | 17.78 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.33 |
EPS(TTM)5.63
EY5.71%
EPS(NY)6.18
Fwd EY6.26%
FCF(TTM)4.06
FCFY4.12%
OCF(TTM)5.55
OCFY5.63%
SpS27.11
BVpS37.95
TBVpS-3.06
PEG (NY)4.85
PEG (5Y)4.76
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 | 3.07 |
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 Y3.61%
EPS Next 2Y5.98%
EPS Next 3Y6.33%
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 2Y6.74%
Revenue Next 3Y6.23%
Revenue Next 5Y5.79%
EBIT growth 1Y7.35%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year16.81%
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 ChartMill fundamental rating of MEDTRONIC PLC (MDT) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MDT.
Can you provide the valuation status for MEDTRONIC PLC?
ChartMill assigns a valuation rating of 6 / 10 to MEDTRONIC PLC (MDT). This can be considered as Fairly Valued.
How profitable is MEDTRONIC PLC (MDT) stock?
MEDTRONIC PLC (MDT) has a profitability rating of 8 / 10.
What are the PE and PB ratios of MEDTRONIC PLC (MDT) stock?
The Price/Earnings (PE) ratio for MEDTRONIC PLC (MDT) is 17.52 and the Price/Book (PB) ratio is 2.6.
Can you provide the financial health for MDT stock?
The financial health rating of MEDTRONIC PLC (MDT) is 6 / 10.