MEDTRONIC PLC (1MDT.MI) Stock Fundamental Analysis
Europe - BIT:1MDT - IE00BTN1Y115 - Common Stock
82.95 EUR
+2.61 (+3.25%)
Overall 1MDT gets a fundamental rating of 5 out of 10. We evaluated 1MDT against 59 industry peers in the Health Care Equipment & Supplies industry. 1MDT scores excellent on profitability, but there are some minor concerns on its financial health. 1MDT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1MDT had positive earnings in the past year.
In the past year 1MDT had a positive cash flow from operations.
1MDT had positive earnings in each of the past 5 years.
Each year in the past 5 years 1MDT had a positive operating cash flow.
1.2 Ratios
1MDT has a Return On Assets of 5.12%. This is in the better half of the industry: 1MDT outperforms 64.41% of its industry peers.
With a decent Return On Equity value of 9.73%, 1MDT is doing good in the industry, outperforming 64.41% of the companies in the same industry.
1MDT's Return On Invested Capital of 6.74% is fine compared to the rest of the industry. 1MDT outperforms 61.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MDT is below the industry average of 9.04%.
The 3 year average ROIC (6.35%) for 1MDT is below the current ROIC(6.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 9.73% | ||
| ROIC | 6.74% |
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
The Profit Margin of 1MDT (13.63%) is better than 79.66% of its industry peers.
In the last couple of years the Profit Margin of 1MDT has declined.
1MDT has a Operating Margin of 19.57%. This is amongst the best in the industry. 1MDT outperforms 83.05% of its industry peers.
1MDT's Operating Margin has been stable in the last couple of years.
1MDT has a better Gross Margin (65.38%) than 66.10% of its industry peers.
In the last couple of years the Gross Margin of 1MDT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.57% | ||
| PM (TTM) | 13.63% | ||
| GM | 65.38% |
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), 1MDT is creating some value.
The number of shares outstanding for 1MDT has been reduced compared to 1 year ago.
Compared to 5 years ago, 1MDT has less shares outstanding
Compared to 1 year ago, 1MDT has a worse debt to assets ratio.
2.2 Solvency
1MDT has an Altman-Z score of 2.98. This is not the best score and indicates that 1MDT is in the grey zone with still only limited risk for bankruptcy at the moment.
1MDT's Altman-Z score of 2.98 is in line compared to the rest of the industry. 1MDT outperforms 55.93% of its industry peers.
1MDT has a debt to FCF ratio of 5.39. This is a neutral value as 1MDT would need 5.39 years to pay back of all of its debts.
The Debt to FCF ratio of 1MDT (5.39) is comparable to the rest of the industry.
1MDT has a Debt/Equity ratio of 0.55. This is a neutral value indicating 1MDT is somewhat dependend on debt financing.
1MDT has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: 1MDT underperforms 67.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.39 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.02
WACC6.6%
2.3 Liquidity
1MDT has a Current Ratio of 2.01. This indicates that 1MDT is financially healthy and has no problem in meeting its short term obligations.
1MDT has a Current ratio of 2.01. This is comparable to the rest of the industry: 1MDT outperforms 59.32% of its industry peers.
1MDT has a Quick Ratio of 1.50. This is a normal value and indicates that 1MDT is financially healthy and should not expect problems in meeting its short term obligations.
1MDT has a Quick ratio of 1.50. This is in the better half of the industry: 1MDT outperforms 67.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
1MDT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.53%.
1MDT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.68% yearly.
Looking at the last year, 1MDT shows a small growth in Revenue. The Revenue has grown by 4.98% in the last year.
The Revenue has been growing slightly by 3.01% on average over the past years.
EPS 1Y (TTM)5.53%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%2.44%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%6.68%
3.2 Future
1MDT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.47% yearly.
Based on estimates for the next years, 1MDT will show a small growth in Revenue. The Revenue will grow by 5.37% on average per year.
EPS Next Y3.35%
EPS Next 2Y5.65%
EPS Next 3Y6.08%
EPS Next 5Y6.47%
Revenue Next Year7.03%
Revenue Next 2Y6.24%
Revenue Next 3Y5.69%
Revenue Next 5Y5.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.43 indicates a rather expensive valuation of 1MDT.
Compared to the rest of the industry, the Price/Earnings ratio of 1MDT indicates a rather cheap valuation: 1MDT is cheaper than 84.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.77, 1MDT is valued a bit cheaper.
1MDT is valuated correctly with a Price/Forward Earnings ratio of 15.68.
74.58% of the companies in the same industry are more expensive than 1MDT, based on the Price/Forward Earnings ratio.
1MDT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
61.02% of the companies in the same industry are more expensive than 1MDT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1MDT is valued a bit cheaper than the industry average as 74.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.29 | ||
| EV/EBITDA | 14.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1MDT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.21
PEG (5Y)4.73
EPS Next 2Y5.65%
EPS Next 3Y6.08%
5. Dividend
5.1 Amount
1MDT has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.36, 1MDT pays a better dividend. On top of this 1MDT pays more dividend than 89.83% of the companies listed in the same industry.
1MDT's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of 1MDT has a limited annual growth rate of 5.10%.
Dividend Growth(5Y)5.1%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MDT pays out 77.27% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1MDT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP77.27%
EPS Next 2Y5.65%
EPS Next 3Y6.08%
BIT:1MDT (10/13/2025, 7:00:00 PM)
82.95
+2.61 (+3.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners87.1%
Inst Owner ChangeN/A
Ins Owners0.29%
Ins Owner ChangeN/A
Market Cap106.40B
Revenue(TTM)34.20B
Net Income(TTM)4.66B
Analysts73.33
Price Target88.65 (6.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend2.36
Dividend Growth(5Y)5.1%
DP77.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.54%
Min EPS beat(2)1.49%
Max EPS beat(2)1.59%
EPS beat(4)3
Avg EPS beat(4)1.05%
Min EPS beat(4)-0.08%
Max EPS beat(4)1.59%
EPS beat(8)6
Avg EPS beat(8)1.56%
EPS beat(12)9
Avg EPS beat(12)1.82%
EPS beat(16)10
Avg EPS beat(16)1.17%
Revenue beat(2)2
Avg Revenue beat(2)0.54%
Min Revenue beat(2)0.17%
Max Revenue beat(2)0.91%
Revenue beat(4)3
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.91%
Revenue beat(8)6
Avg Revenue beat(8)0.26%
Revenue beat(12)9
Avg Revenue beat(12)0.38%
Revenue beat(16)10
Avg Revenue beat(16)-0.26%
PT rev (1m)1.47%
PT rev (3m)1.47%
EPS NQ rev (1m)-6.18%
EPS NQ rev (3m)-6.18%
EPS NY rev (1m)-3.46%
EPS NY rev (3m)-3.46%
Revenue NQ rev (1m)1.57%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)2.46%
Revenue NY rev (3m)2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 15.68 | ||
| P/S | 3.61 | ||
| P/FCF | 23.29 | ||
| P/OCF | 17.28 | ||
| P/B | 2.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.23 |
EPS(TTM)4.76
EY5.74%
EPS(NY)5.29
Fwd EY6.38%
FCF(TTM)3.56
FCFY4.29%
OCF(TTM)4.8
OCFY5.79%
SpS22.97
BVpS32.17
TBVpS-3.58
PEG (NY)5.21
PEG (5Y)4.73
Graham Number58.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.12% | ||
| ROE | 9.73% | ||
| ROCE | 8.43% | ||
| ROIC | 6.74% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 29.59% | ||
| OM | 19.57% | ||
| PM (TTM) | 13.63% | ||
| GM | 65.38% | ||
| FCFM | 15.51% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.39 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 62.54% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 9.24 | ||
| Cash Conversion | 74.13% | ||
| Profit Quality | 113.8% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 2.98 |
F-Score7
WACC6.6%
ROIC/WACC1.02
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)5.53%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%2.44%
EPS Next Y3.35%
EPS Next 2Y5.65%
EPS Next 3Y6.08%
EPS Next 5Y6.47%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%6.68%
Revenue Next Year7.03%
Revenue Next 2Y6.24%
Revenue Next 3Y5.69%
Revenue Next 5Y5.37%
EBIT growth 1Y8.97%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year19.44%
EBIT Next 3Y10.76%
EBIT Next 5Y9.23%
FCF growth 1Y19.33%
FCF growth 3Y-4.64%
FCF growth 5Y-2.95%
OCF growth 1Y22.55%
OCF growth 3Y-1.39%
OCF growth 5Y-0.53%