MTD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 58 industry peers in the Life Sciences Tools & Services industry. While MTD has a great profitability rating, there are some minor concerns on its financial health. MTD has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MTD was profitable.
In the past year MTD had a positive cash flow from operations.
In the past 5 years MTD has always been profitable.
MTD had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

MTD's Return On Assets of 23.73% is amongst the best of the industry. MTD outperforms 98.28% of its industry peers.
MTD's Return On Invested Capital of 39.45% is amongst the best of the industry. MTD outperforms 98.28% of its industry peers.
MTD had an Average Return On Invested Capital over the past 3 years of 41.86%. This is significantly above the industry average of 13.29%.

		Industry Rank	Sector Rank
ROA	23.73%
ROE	N/A
ROIC	39.45%

ROA(3y)25.04%

ROA(5y)23.93%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)41.86%

ROIC(5y)39.3%

1.3 Margins

With an excellent Profit Margin value of 21.20%, MTD belongs to the best of the industry, outperforming 98.28% of the companies in the same industry.
In the last couple of years the Profit Margin of MTD has grown nicely.
The Operating Margin of MTD (28.39%) is better than 98.28% of its industry peers.
MTD's Operating Margin has improved in the last couple of years.
MTD has a Gross Margin of 59.73%. This is in the better half of the industry: MTD outperforms 79.31% of its industry peers.
In the last couple of years the Gross Margin of MTD has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	28.39%
PM (TTM)	21.2%
GM	59.73%

OM growth 3Y2.77%

OM growth 5Y3.56%

PM growth 3Y2.52%

PM growth 5Y3.63%

GM growth 3Y0.93%

GM growth 5Y0.74%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MTD is creating value.
Compared to 1 year ago, MTD has less shares outstanding
MTD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MTD is higher compared to a year ago.

2.2 Solvency

MTD has an Altman-Z score of 10.29. This indicates that MTD is financially healthy and has little risk of bankruptcy at the moment.
MTD's Altman-Z score of 10.29 is amongst the best of the industry. MTD outperforms 93.10% of its industry peers.
The Debt to FCF ratio of MTD is 2.48, which is a good value as it means it would take MTD, 2.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.48, MTD belongs to the top of the industry, outperforming 84.48% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	2.48
Altman-Z	10.29

ROIC/WACC3.62

WACC10.91%

2.3 Liquidity

A Current Ratio of 1.07 indicates that MTD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.07, MTD is doing worse than 82.76% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that MTD may have some problems paying its short term obligations.
MTD has a worse Quick ratio (0.74) than 89.66% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.07
Quick Ratio	0.74

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

MTD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.67%, which is quite good.
Measured over the past years, MTD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.53% on average per year.
Looking at the last year, MTD shows a small growth in Revenue. The Revenue has grown by 4.77% in the last year.
Measured over the past years, MTD shows a small growth in Revenue. The Revenue has been growing by 5.18% on average per year.

EPS 1Y (TTM)9.67%

EPS 3Y6.67%

EPS 5Y12.53%

EPS Q2Q%9.21%

Revenue 1Y (TTM)4.77%

Revenue growth 3Y1.37%

Revenue growth 5Y5.18%

Sales Q2Q%7.87%

3.2 Future

Based on estimates for the next years, MTD will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.29% on average per year.
MTD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.61% yearly.

EPS Next Y3.56%

EPS Next 2Y5.95%

EPS Next 3Y7.53%

EPS Next 5Y9.29%

Revenue Next Year4.18%

Revenue Next 2Y4.49%

Revenue Next 3Y4.57%

Revenue Next 5Y4.61%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

MTD is valuated quite expensively with a Price/Earnings ratio of 32.82.
Compared to the rest of the industry, the Price/Earnings ratio of MTD indicates a somewhat cheap valuation: MTD is cheaper than 63.79% of the companies listed in the same industry.
MTD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.72, the valuation of MTD can be described as expensive.
63.79% of the companies in the same industry are more expensive than MTD, based on the Price/Forward Earnings ratio.
MTD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	32.82
Fwd PE	29.72

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MTD is valued a bit cheaper than 63.79% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTD indicates a somewhat cheap valuation: MTD is cheaper than 74.14% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	31.54
EV/EBITDA	24.62

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MTD does not grow enough to justify the current Price/Earnings ratio.
MTD has an outstanding profitability rating, which may justify a higher PE ratio.