Overall MTD gets a fundamental rating of 5 out of 10. We evaluated MTD against 58 industry peers in the Life Sciences Tools & Services industry. While MTD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MTD is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

MTD had positive earnings in the past year.
MTD had a positive operating cash flow in the past year.
Each year in the past 5 years MTD has been profitable.
MTD had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 23.73%, MTD belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
With an excellent Return On Invested Capital value of 39.45%, MTD belongs to the best of the industry, outperforming 98.28% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MTD 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

Looking at the Profit Margin, with a value of 21.20%, MTD belongs to the top 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.
MTD's Operating Margin of 28.39% is amongst the best of the industry. MTD outperforms 98.28% of its industry peers.
In the last couple of years the Operating Margin of MTD has grown nicely.
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.
MTD's Gross Margin has been stable in the last couple of years.

		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

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

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 has a better Altman-Z score (10.29) than 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.
MTD has a Debt to FCF ratio of 2.48. This is amongst the best in the industry. MTD outperforms 84.48% of its industry peers.

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

ROIC/WACC3.62

WACC10.9%

2.3 Liquidity

A Current Ratio of 1.07 indicates that MTD should not have too much problems paying its short term obligations.
The Current ratio of MTD (1.07) is worse than 82.76% of its industry peers.
MTD has a Quick Ratio of 1.07. This is a bad value and indicates that MTD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MTD (0.74) is worse 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.
The Revenue has been growing slightly by 4.77% in the past year.
The Revenue has been growing slightly by 5.18% on average over the past years.

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

The Earnings Per Share is expected to grow by 9.29% on average over the next years. This is quite good.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 32.82, MTD can be considered very expensive at the moment.
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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.30.
The Price/Forward Earnings ratio is 29.72, which means the current valuation is very expensive for MTD.
Based on the Price/Forward Earnings ratio, MTD is valued a bit cheaper than the industry average as 63.79% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MTD to the average of the S&P500 Index (25.57), we can say MTD is valued inline with the index average.

		Industry Rank	Sector Rank
PE	32.82
Fwd PE	29.72

4.2 Price Multiples

MTD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTD is cheaper than 63.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTD is valued a bit cheaper than the industry average as 74.14% of the companies are valued more expensively.

		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 an expensive valuation of the company.
MTD has an outstanding profitability rating, which may justify a higher PE ratio.