MEDTRONIC PLC (MDT)
IE00BTN1Y115 - Common Stock
Overall MDT gets a fundamental rating of 6 out of 10. We evaluated MDT against 188 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.
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.
In the past 5 years MDT has always been profitable.
MDT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MDT has a Return On Assets of 4.38%. This is amongst the best in the industry. MDT outperforms 82.35% of its industry peers.
Looking at the Return On Equity, with a value of 8.19%, MDT belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.69%, MDT belongs to the best of the industry, outperforming 80.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MDT is below the industry average of 8.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 8.19% | ||
| ROIC | 5.69% |
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
Looking at the Profit Margin, with a value of 12.05%, MDT belongs to the top of the industry, outperforming 89.30% of the companies in the same industry.
In the last couple of years the Profit Margin of MDT has declined.
With an excellent Operating Margin value of 18.85%, MDT belongs to the best of the industry, outperforming 91.98% of the companies in the same industry.
In the last couple of years the Operating Margin of MDT has declined.
MDT has a Gross Margin of 65.53%. This is in the better half of the industry: MDT outperforms 67.38% 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 | 18.85% | ||
| PM (TTM) | 12.05% | ||
| GM | 65.53% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MDT is destroying value.
The number of shares outstanding for MDT has been reduced compared to 1 year ago.
Compared to 5 years ago, MDT has less shares outstanding
MDT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.77 indicates that MDT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.77, MDT is doing good in the industry, outperforming 64.71% of the companies in the same industry.
The Debt to FCF ratio of MDT is 5.42, which is a neutral value as it means it would take MDT, 5.42 years of fcf income to pay off all of its debts.
MDT has a better Debt to FCF ratio (5.42) than 78.61% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that MDT is somewhat dependend on debt financing.
MDT's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. MDT is outperformed by 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.9
WACC6.34%
2.3 Liquidity
A Current Ratio of 2.13 indicates that MDT has no problem at all paying its short term obligations.
With a Current ratio value of 2.13, MDT is not doing good in the industry: 65.78% of the companies in the same industry are doing better.
MDT has a Quick Ratio of 1.61. 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 1.61, MDT is in line with its industry, outperforming 41.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
MDT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.32%.
Measured over the past years, MDT shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.04% on average per year.
MDT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.64%.
Measured over the past years, MDT shows a small growth in Revenue. The Revenue has been growing by 1.16% on average per year.
EPS 1Y (TTM)-1.32%
EPS 3Y5.55%
EPS 5Y-0.04%
EPS Q2Q%0.8%
Revenue 1Y (TTM)3.64%
Revenue growth 3Y2.43%
Revenue growth 5Y1.16%
Sales Q2Q%5.25%
3.2 Future
The Earnings Per Share is expected to grow by 7.45% on average over the next years.
Based on estimates for the next years, MDT will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y5.73%
EPS Next 2Y6.54%
EPS Next 3Y6.99%
EPS Next 5Y7.45%
Revenue Next Year4.29%
Revenue Next 2Y4.53%
Revenue Next 3Y4.67%
Revenue Next 5Y4.72%
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 correctly with a Price/Earnings ratio of 16.14.
90.91% of the companies in the same industry are more expensive than MDT, based on the Price/Earnings ratio.
MDT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
MDT is valuated correctly with a Price/Forward Earnings ratio of 14.33.
91.98% of the companies in the same industry are more expensive than MDT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.56. MDT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.14 | ||
| Fwd PE | 14.33 |
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 88.24% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MDT is valued cheaply inside the industry as 89.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.12 | ||
| EV/EBITDA | 13.82 |
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)2.82
PEG (5Y)N/A
EPS Next 2Y6.54%
EPS Next 3Y6.99%
5. Dividend
5.1 Amount
MDT has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.68, MDT pays a better dividend. On top of this MDT pays more dividend than 98.40% of the companies listed in the same industry.
MDT's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
5.2 History
On average, the dividend of MDT grows each year by 6.78%, which is quite nice.
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)6.78%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
MDT pays out 92.84% of its income as dividend. This is not a sustainable payout ratio.
MDT's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP92.84%
EPS Next 2Y6.54%
EPS Next 3Y6.99%
MEDTRONIC PLC
NYSE:MDT (11/21/2024, 4:10:00 PM)
After market: 84.74 0 (0%)84.74
+0.63 (+0.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap108.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.14 | ||
| Fwd PE | 14.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 8.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.85% | ||
| PM (TTM) | 12.05% | ||
| GM | 65.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-1.32%
EPS 3Y5.55%
EPS 5Y
EPS Q2Q%
EPS Next Y5.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.64%
Revenue growth 3Y2.43%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y