MEDTRONIC PLC (1MDT.MI) Stock Fundamental Analysis
BIT:1MDT - Euronext Milan - IE00BTN1Y115 - Common Stock - Currency: EUR
Taking everything into account, 1MDT scores 5 out of 10 in our fundamental rating. 1MDT was compared to 62 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of 1MDT get a neutral evaluation. Nothing too spectacular is happening here. 1MDT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1MDT was profitable.
In the past year 1MDT had a positive cash flow from operations.
In the past 5 years 1MDT has always been profitable.
Each year in the past 5 years 1MDT had a positive operating cash flow.
1.2 Ratios
1MDT has a better Return On Assets (4.73%) than 70.49% of its industry peers.
The Return On Equity of 1MDT (8.63%) is better than 65.57% of its industry peers.
1MDT has a better Return On Invested Capital (6.09%) than 65.57% of its industry peers.
1MDT had an Average Return On Invested Capital over the past 3 years of 5.95%. This is below the industry average of 8.23%.
The last Return On Invested Capital (6.09%) for 1MDT is above the 3 year average (5.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 8.63% | ||
| ROIC | 6.09% |
ROA(3y)4.59%
ROA(5y)4.58%
ROE(3y)8.07%
ROE(5y)8.13%
ROIC(3y)5.95%
ROIC(5y)5.53%
1.3 Margins
1MDT's Profit Margin of 12.83% is fine compared to the rest of the industry. 1MDT outperforms 78.69% of its industry peers.
1MDT's Profit Margin has declined in the last couple of years.
The Operating Margin of 1MDT (19.47%) is better than 85.25% of its industry peers.
1MDT's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 65.59%, 1MDT is doing good in the industry, outperforming 62.30% of the companies in the same industry.
1MDT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.47% | ||
| PM (TTM) | 12.83% | ||
| GM | 65.59% |
OM growth 3Y1.83%
OM growth 5Y-3.49%
PM growth 3Y-1.74%
PM growth 5Y-5.6%
GM growth 3Y0.06%
GM growth 5Y-1.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1MDT is destroying value.
The number of shares outstanding for 1MDT has been reduced compared to 1 year ago.
The number of shares outstanding for 1MDT has been reduced compared to 5 years ago.
1MDT has a worse debt/assets ratio than last year.
2.2 Solvency
1MDT has an Altman-Z score of 2.87. 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 2.87 is fine compared to the rest of the industry. 1MDT outperforms 67.21% of its industry peers.
The Debt to FCF ratio of 1MDT is 4.87, which is a neutral value as it means it would take 1MDT, 4.87 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1MDT (4.87) is better than 63.93% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that 1MDT is not too dependend on debt financing.
1MDT has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.9
WACC6.73%
2.3 Liquidity
A Current Ratio of 1.90 indicates that 1MDT should not have too much problems paying its short term obligations.
1MDT has a Current ratio (1.90) which is comparable to the rest of the industry.
A Quick Ratio of 1.43 indicates that 1MDT should not have too much problems paying its short term obligations.
1MDT has a better Quick ratio (1.43) than 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.38% over the past year.
Measured over the past years, 1MDT shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.04% on average per year.
Looking at the last year, 1MDT shows a small growth in Revenue. The Revenue has grown by 2.72% in the last year.
Measured over the past years, 1MDT shows a small growth in Revenue. The Revenue has been growing by 1.16% on average per year.
EPS 1Y (TTM)0.38%
EPS 3Y5.55%
EPS 5Y-0.04%
EPS Q2Q%6.92%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y2.43%
Revenue growth 5Y1.16%
Sales Q2Q%2.51%
3.2 Future
The Earnings Per Share is expected to grow by 7.01% on average over the next years.
The Revenue is expected to grow by 4.70% on average over the next years.
EPS Next Y5.72%
EPS Next 2Y6.3%
EPS Next 3Y6.82%
EPS Next 5Y7.01%
Revenue Next Year3.89%
Revenue Next 2Y4.17%
Revenue Next 3Y4.48%
Revenue Next 5Y4.7%
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
With a Price/Earnings ratio of 16.17, 1MDT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of 1MDT indicates a rather cheap valuation: 1MDT is cheaper than 81.97% of the companies listed in the same industry.
1MDT is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.66 indicates a correct valuation of 1MDT.
1MDT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1MDT is cheaper than 75.41% of the companies in the same industry.
1MDT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
80.33% 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 cheaply inside the industry as 85.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.26 | ||
| EV/EBITDA | 13.43 |
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)2.83
PEG (5Y)N/A
EPS Next 2Y6.3%
EPS Next 3Y6.82%
5. Dividend
5.1 Amount
1MDT has a Yearly Dividend Yield of 3.39%. Purely for dividend investing, there may be better candidates out there.
1MDT's Dividend Yield is rather good when compared to the industry average which is at 2.16. 1MDT pays more dividend than 91.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, 1MDT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
5.2 History
On average, the dividend of 1MDT grows each year by 6.78%, which is quite nice.
Dividend Growth(5Y)6.78%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
84.62% of the earnings are spent on dividend by 1MDT. This is not a sustainable payout ratio.
The dividend of 1MDT is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP84.62%
EPS Next 2Y6.3%
EPS Next 3Y6.82%
BIT:1MDT (5/19/2025, 7:00:00 PM)
76.34
+0.73 (+0.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners85.71%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap97.91B
Analysts71.89
Price Target89.09 (16.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Yearly Dividend2.44
Dividend Growth(5Y)6.78%
DP84.62%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.56%
Min EPS beat(2)-0.08%
Max EPS beat(2)1.21%
EPS beat(4)2
Avg EPS beat(4)0.62%
Min EPS beat(4)-0.31%
Max EPS beat(4)1.65%
EPS beat(8)5
Avg EPS beat(8)2.04%
EPS beat(12)7
Avg EPS beat(12)1.23%
EPS beat(16)10
Avg EPS beat(16)1.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)0.59%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.8%
Revenue beat(8)6
Avg Revenue beat(8)0.54%
Revenue beat(12)8
Avg Revenue beat(12)-0.03%
Revenue beat(16)9
Avg Revenue beat(16)-0.32%
PT rev (1m)-3.74%
PT rev (3m)-2.38%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 14.66 | ||
| P/S | 3.34 | ||
| P/FCF | 20.26 | ||
| P/OCF | 15.18 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.43 |
EPS(TTM)4.72
EY6.18%
EPS(NY)5.21
Fwd EY6.82%
FCF(TTM)3.77
FCFY4.94%
OCF(TTM)5.03
OCFY6.59%
SpS22.89
BVpS34.05
TBVpS-2.49
PEG (NY)2.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 8.63% | ||
| ROCE | 8.27% | ||
| ROIC | 6.09% | ||
| ROICexc | 6.77% | ||
| ROICexgc | 27.64% | ||
| OM | 19.47% | ||
| PM (TTM) | 12.83% | ||
| GM | 65.59% | ||
| FCFM | 16.46% |
ROA(3y)4.59%
ROA(5y)4.58%
ROE(3y)8.07%
ROE(5y)8.13%
ROIC(3y)5.95%
ROIC(5y)5.53%
ROICexc(3y)6.7%
ROICexc(5y)6.28%
ROICexgc(3y)31.86%
ROICexgc(5y)32.58%
ROCE(3y)8.09%
ROCE(5y)7.51%
ROICexcg growth 3Y-2.06%
ROICexcg growth 5Y-10.72%
ROICexc growth 3Y5.54%
ROICexc growth 5Y-2.32%
OM growth 3Y1.83%
OM growth 5Y-3.49%
PM growth 3Y-1.74%
PM growth 5Y-5.6%
GM growth 3Y0.06%
GM growth 5Y-1.35%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 68.26% | ||
| Cap/Sales | 5.5% | ||
| Interest Coverage | 7.84 | ||
| Cash Conversion | 79.78% | ||
| Profit Quality | 128.31% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 2.87 |
F-Score6
WACC6.73%
ROIC/WACC0.9
Cap/Depr(3y)54.86%
Cap/Depr(5y)52.06%
Cap/Sales(3y)4.63%
Cap/Sales(5y)4.52%
Profit Quality(3y)127.33%
Profit Quality(5y)128.64%
High Growth Momentum
Growth
EPS 1Y (TTM)0.38%
EPS 3Y5.55%
EPS 5Y-0.04%
EPS Q2Q%6.92%
EPS Next Y5.72%
EPS Next 2Y6.3%
EPS Next 3Y6.82%
EPS Next 5Y7.01%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y2.43%
Revenue growth 5Y1.16%
Sales Q2Q%2.51%
Revenue Next Year3.89%
Revenue Next 2Y4.17%
Revenue Next 3Y4.48%
Revenue Next 5Y4.7%
EBIT growth 1Y0.33%
EBIT growth 3Y4.3%
EBIT growth 5Y-2.37%
EBIT Next Year17.45%
EBIT Next 3Y10.11%
EBIT Next 5Y2.66%
FCF growth 1Y31.17%
FCF growth 3Y2.1%
FCF growth 5Y-2.4%
OCF growth 1Y29.36%
OCF growth 3Y2.84%
OCF growth 5Y-0.64%