MEDTRONIC PLC (MDT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MDT - IE00BTN1Y115 - Common Stock
96.95 USD
-0.58 (-0.59%)
97.6669 USD
+0.72 (+0.74%)
MDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 185 industry peers in the Health Care Equipment & Supplies industry. While MDT has a great profitability rating, 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.
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.
1.2 Ratios
MDT has a better Return On Assets (5.22%) than 81.62% of its industry peers.
MDT's Return On Equity of 9.79% is amongst the best of the industry. MDT outperforms 85.41% of its industry peers.
MDT has a Return On Invested Capital of 6.63%. This is amongst the best in the industry. MDT outperforms 81.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
Looking at the Profit Margin, with a value of 13.71%, MDT belongs to the top of the industry, outperforming 89.73% of the companies in the same industry.
In the last couple of years the Profit Margin of MDT has declined.
The Operating Margin of MDT (19.42%) is better than 92.97% of its industry peers.
MDT's Operating Margin has been stable in the last couple of years.
MDT's Gross Margin of 65.57% is fine compared to the rest of the industry. MDT outperforms 69.73% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MDT is creating some value.
Compared to 1 year ago, MDT has less shares outstanding
Compared to 5 years ago, MDT has less shares outstanding
The debt/assets ratio for MDT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.05 indicates that MDT is not in any danger for bankruptcy at the moment.
MDT has a better Altman-Z score (3.05) than 68.65% 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.
MDT has a Debt to FCF ratio of 5.59. This is in the better half of the industry: MDT outperforms 78.92% 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.
MDT has a Debt to Equity ratio of 0.57. This is in the lower half of the industry: MDT underperforms 61.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.05 |
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 48.65% of the companies in the same 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 48.11% of its industry peers.
| 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.
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%.
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 6.08% on average over the next years.
The Revenue is expected to grow by 5.80% on average over the next years.
EPS Next Y3.64%
EPS Next 2Y6%
EPS Next 3Y6.38%
EPS Next 5Y6.08%
Revenue Next Year7.65%
Revenue Next 2Y6.76%
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
The Price/Earnings ratio is 17.22, which indicates a rather expensive current valuation of MDT.
Compared to the rest of the industry, the Price/Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 87.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MDT to the average of the S&P500 Index (27.25), we can say MDT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.69, the valuation of MDT can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 88.11% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. MDT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDT is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
MDT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MDT is cheaper than 86.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.87 | ||
| EV/EBITDA | 14.13 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.73
PEG (5Y)4.67
EPS Next 2Y6%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.88%, MDT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.19, MDT pays a better dividend. On top of this MDT pays more dividend than 98.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, MDT pays a better dividend.
| 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 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%
96.95
-0.58 (-0.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.22%
Inst Owner Change0.21%
Ins Owners0.28%
Ins Owner Change3.68%
Market Cap124.29B
Revenue(TTM)34.76B
Net Income(TTM)4.76B
Analysts74.21
Price Target112.26 (15.79%)
Short Float %1.18%
Short Ratio2.22
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-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)0.59%
PT rev (3m)11.63%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 15.69 | ||
| P/S | 3.58 | ||
| P/FCF | 23.87 | ||
| P/OCF | 17.47 | ||
| P/B | 2.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.13 |
EPS(TTM)5.63
EY5.81%
EPS(NY)6.18
Fwd EY6.37%
FCF(TTM)4.06
FCFY4.19%
OCF(TTM)5.55
OCFY5.72%
SpS27.11
BVpS37.95
TBVpS-3.06
PEG (NY)4.73
PEG (5Y)4.67
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 | 3.05 |
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 5Y6.08%
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 5Y5.8%
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 17.22 and the Price/Book (PB) ratio is 2.55.
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.