MEDTRONIC PLC (MDT) Fundamental Analysis & Valuation
NYSE:MDT • IE00BTN1Y115
Current stock price
80.97 USD
+1.6 (+2.02%)
At close:
81 USD
+0.03 (+0.04%)
After Hours:
This MDT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. MDT Profitability Analysis
1.1 Basic Checks
- In the past year MDT was profitable.
- 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
- Looking at the Return On Assets, with a value of 5.04%, MDT belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.
- MDT's Return On Equity of 9.42% is amongst the best of the industry. MDT outperforms 81.28% of its industry peers.
- MDT has a Return On Invested Capital of 6.57%. This is amongst the best in the industry. MDT outperforms 80.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MDT is below the industry average of 9.14%.
- The last Return On Invested Capital (6.57%) for MDT is above the 3 year average (6.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 9.42% | ||
| ROIC | 6.57% |
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 13.00%. This is amongst the best in the industry. MDT outperforms 88.24% of its industry peers.
- MDT's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 18.98%, MDT belongs to the best of the industry, outperforming 91.44% 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.
- With a decent Gross Margin value of 65.16%, MDT is doing good in the industry, outperforming 69.52% of the companies in the same industry.
- MDT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.98% | ||
| PM (TTM) | 13% | ||
| GM | 65.16% |
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. MDT Health Analysis
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.
- 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.
- MDT has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.75 indicates that MDT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.75, MDT is in the better half of the industry, outperforming 66.31% of the companies in the same industry.
- The Debt to FCF ratio of MDT is 5.19, which is a neutral value as it means it would take MDT, 5.19 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 5.19, MDT is doing good in the industry, outperforming 75.40% of the companies in the same industry.
- A Debt/Equity ratio of 0.57 indicates that 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 62.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 2.75 |
ROIC/WACC1
WACC6.57%
2.3 Liquidity
- A Current Ratio of 2.54 indicates that MDT has no problem at all paying its short term obligations.
- The Current ratio of MDT (2.54) is comparable to the rest of the industry.
- A Quick Ratio of 1.87 indicates that MDT should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.87, MDT is in line with its industry, outperforming 47.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.87 |
3. MDT Growth Analysis
3.1 Past
- MDT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.87%.
- The Earnings Per Share has been growing slightly by 3.68% on average over the past years.
- Looking at the last year, MDT shows a small growth in Revenue. The Revenue has grown by 6.88% in the last year.
- The Revenue has been growing slightly by 3.01% on average over the past years.
EPS 1Y (TTM)4.87%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%-2.16%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%8.74%
3.2 Future
- MDT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.97% yearly.
- MDT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.28% yearly.
EPS Next Y2.83%
EPS Next 2Y5.59%
EPS Next 3Y6.24%
EPS Next 5Y6.97%
Revenue Next Year7.95%
Revenue Next 2Y7.24%
Revenue Next 3Y6.44%
Revenue Next 5Y5.28%
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. MDT Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.46, MDT is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 87.70% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of MDT to the average of the S&P500 Index (26.77), we can say MDT is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 13.20, MDT is valued correctly.
- 88.77% of the companies in the same industry are more expensive than MDT, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of MDT to the average of the S&P500 Index (21.75), we can say MDT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 13.2 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MDT is valued cheaper than 86.63% 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 88.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.22 | ||
| EV/EBITDA | 11.65 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.1
PEG (5Y)3.93
EPS Next 2Y5.59%
EPS Next 3Y6.24%
5. MDT Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.39%, MDT has a reasonable but not impressive dividend return.
- The stock price of MDT dropped by -21.36% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- MDT's Dividend Yield is rather good when compared to the industry average which is at 0.25. MDT pays more dividend than 97.86% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, MDT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.1%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
- MDT pays out 78.65% of its income as dividend. This is not a sustainable payout ratio.
- MDT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.65%
EPS Next 2Y5.59%
EPS Next 3Y6.24%
MDT Fundamentals: All Metrics, Ratios and Statistics
80.97
+1.6 (+2.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Industry Strength37.84
Industry Growth70
Earnings (Last)02-17 2026-02-17/bmo
Earnings (Next)06-03 2026-06-03/amc
Inst Owners87.92%
Inst Owner Change-0.17%
Ins Owners0.28%
Ins Owner Change-1.38%
Market Cap103.96B
Revenue(TTM)35.48B
Net Income(TTM)4.61B
Analysts76.22
Price Target111.21 (37.35%)
Short Float %1.21%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Yearly Dividend2.77
Dividend Growth(5Y)5.1%
DP78.65%
Div Incr Years12
Div Non Decr Years12
Ex-Date03-27 2026-03-27 (0.71)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.66%
Min EPS beat(2)0.89%
Max EPS beat(2)2.43%
EPS beat(4)4
Avg EPS beat(4)1.6%
Min EPS beat(4)0.89%
Max EPS beat(4)2.43%
EPS beat(8)6
Avg EPS beat(8)1.11%
EPS beat(12)9
Avg EPS beat(12)1.9%
EPS beat(16)11
Avg EPS beat(16)1.33%
Revenue beat(2)2
Avg Revenue beat(2)0.17%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.26%
Revenue beat(4)4
Avg Revenue beat(4)0.35%
Min Revenue beat(4)0.08%
Max Revenue beat(4)0.91%
Revenue beat(8)7
Avg Revenue beat(8)0.23%
Revenue beat(12)10
Avg Revenue beat(12)0.48%
Revenue beat(16)12
Avg Revenue beat(16)0.07%
PT rev (1m)-1.8%
PT rev (3m)-0.45%
EPS NQ rev (1m)-3.95%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 13.2 | ||
| P/S | 2.93 | ||
| P/FCF | 19.22 | ||
| P/OCF | 14.27 | ||
| P/B | 2.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.65 |
EPS(TTM)5.6
EY6.92%
EPS(NY)6.13
Fwd EY7.57%
FCF(TTM)4.21
FCFY5.2%
OCF(TTM)5.67
OCFY7.01%
SpS27.64
BVpS38.15
TBVpS-2.53
PEG (NY)5.1
PEG (5Y)3.93
Graham Number69.3353 (-14.37%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 9.42% | ||
| ROCE | 8.21% | ||
| ROIC | 6.57% | ||
| ROICexc | 7.32% | ||
| ROICexgc | 25.19% | ||
| OM | 18.98% | ||
| PM (TTM) | 13% | ||
| GM | 65.16% | ||
| FCFM | 15.24% |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 60.84% | ||
| Cap/Sales | 5.28% | ||
| Interest Coverage | 8.77 | ||
| Cash Conversion | 74.21% | ||
| Profit Quality | 117.26% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 2.75 |
F-Score7
WACC6.57%
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)4.87%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%-2.16%
EPS Next Y2.83%
EPS Next 2Y5.59%
EPS Next 3Y6.24%
EPS Next 5Y6.97%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%8.74%
Revenue Next Year7.95%
Revenue Next 2Y7.24%
Revenue Next 3Y6.44%
Revenue Next 5Y5.28%
EBIT growth 1Y4.15%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year18.42%
EBIT Next 3Y11.24%
EBIT Next 5Y8.65%
FCF growth 1Y9.67%
FCF growth 3Y-4.64%
FCF growth 5Y-2.95%
OCF growth 1Y12.56%
OCF growth 3Y-1.39%
OCF growth 5Y-0.53%
MEDTRONIC PLC / MDT Fundamental Analysis 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.
Can you provide the profitability details for MEDTRONIC PLC?
MEDTRONIC PLC (MDT) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for MDT stock?
The Price/Earnings (PE) ratio for MEDTRONIC PLC (MDT) is 14.46 and the Price/Book (PB) ratio is 2.12.
Can you provide the dividend sustainability for MDT stock?
The dividend rating of MEDTRONIC PLC (MDT) is 7 / 10 and the dividend payout ratio is 78.65%.