MEDTRONIC PLC (MDT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MDT - IE00BTN1Y115 - Common Stock
98.69 USD
-1.08 (-1.08%)
99.3 USD
+0.61 (+0.62%)
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 has a decent growth rate and is not valued too expensively. MDT also has an excellent dividend rating. With these ratings, MDT could be worth investigating further for dividend investing!.
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.
In the past 5 years MDT has always 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 81.62% of its industry peers.
The Return On Equity of MDT (9.79%) is better than 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.
MDT had an Average Return On Invested Capital over the past 3 years of 6.35%. This is below the industry average of 8.84%.
The 3 year average ROIC (6.35%) for MDT is below the current ROIC(6.63%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 13.71%, MDT belongs to the best of the industry, outperforming 89.73% of the companies in the same industry.
MDT's Profit Margin has declined in the last couple of years.
MDT's Operating Margin of 19.42% is amongst the best of the industry. MDT outperforms 92.97% of its industry peers.
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 69.73% 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.
MDT has less shares outstanding than it did 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 3.10 indicates that MDT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.10, MDT is doing good in the industry, outperforming 69.19% of the companies in the same industry.
MDT has a debt to FCF ratio of 5.59. This is a neutral value as MDT would need 5.59 years to pay back of all of its debts.
The Debt to FCF ratio of MDT (5.59) is better than 78.38% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that MDT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, MDT is doing worse than 61.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.1 |
ROIC/WACC1
WACC6.62%
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.
A Quick Ratio of 1.80 indicates that MDT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.80, MDT is in line with its industry, outperforming 48.65% of the companies in the same industry.
| 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.
Measured over the past 5 years, MDT shows a small growth in Earnings Per Share. The EPS has been growing by 3.68% on average per year.
The Revenue has been growing slightly by 5.34% in the past year.
Measured over the past years, MDT shows a small growth in Revenue. The Revenue has been growing by 3.01% on average per year.
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 Y3.64%
EPS Next 2Y6%
EPS Next 3Y6.38%
EPS Next 5Y6.35%
Revenue Next Year7.65%
Revenue Next 2Y6.76%
Revenue Next 3Y6.25%
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.
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 17.53.
Based on the Price/Earnings ratio, MDT is valued cheaply inside the industry as 84.86% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MDT to the average of the S&P500 Index (27.00), we can say MDT is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.97, which indicates a correct valuation of MDT.
Based on the Price/Forward Earnings ratio, MDT is valued cheaper than 87.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MDT to the average of the S&P500 Index (23.70), we can say MDT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 15.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDT is valued cheaply inside the industry as 82.70% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MDT is valued cheaper than 84.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.3 | ||
| EV/EBITDA | 14.5 |
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)4.82
PEG (5Y)4.76
EPS Next 2Y6%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
MDT has a Yearly Dividend Yield of 2.96%.
Compared to an average industry Dividend Yield of 0.20, 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 1.94, MDT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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 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 2Y6%
EPS Next 3Y6.38%
98.69
-1.08 (-1.08%)
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%
Ins Owners0.28%
Ins Owner Change3.68%
Market Cap126.52B
Revenue(TTM)34.76B
Net Income(TTM)4.76B
Analysts73.33
Price Target112.26 (13.75%)
Short Float %1.18%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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)8.82%
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 | 17.53 | ||
| Fwd PE | 15.97 | ||
| P/S | 3.64 | ||
| P/FCF | 24.3 | ||
| P/OCF | 17.79 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.5 |
EPS(TTM)5.63
EY5.7%
EPS(NY)6.18
Fwd EY6.26%
FCF(TTM)4.06
FCFY4.11%
OCF(TTM)5.55
OCFY5.62%
SpS27.11
BVpS37.95
TBVpS-3.06
PEG (NY)4.82
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 | 3.1 |
F-Score8
WACC6.62%
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 5Y6.35%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%6.64%
Revenue Next Year7.65%
Revenue Next 2Y6.76%
Revenue Next 3Y6.25%
Revenue Next 5Y5.79%
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 17.53 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.