MEDTRONIC PLC (1MDT.MI) Stock Fundamental Analysis
Europe - BIT:1MDT - IE00BTN1Y115 - Common Stock
82.95 EUR
+2.61 (+3.25%)
Taking everything into account, 1MDT scores 5 out of 10 in our fundamental rating. 1MDT was compared to 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
In the past year 1MDT was profitable.
1MDT had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 5.12%, 1MDT is doing good in the industry, outperforming 66.10% of the companies in the same industry.
With a decent Return On Equity value of 9.73%, 1MDT is doing good in the industry, outperforming 66.10% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.74%, 1MDT is in the better half of the industry, outperforming 62.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1MDT is below the industry average of 9.04%.
The last Return On Invested Capital (6.74%) for 1MDT is above the 3 year average (6.35%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 13.63%, 1MDT belongs to the top of the industry, outperforming 81.36% of the companies in the same industry.
1MDT's Profit Margin has declined in the last couple of years.
1MDT's Operating Margin of 19.57% is amongst the best of the industry. 1MDT outperforms 84.75% of its industry peers.
In the last couple of years the Operating Margin of 1MDT has remained more or less at the same level.
The Gross Margin of 1MDT (65.38%) is better than 67.80% of its industry peers.
1MDT's Gross Margin has been stable in the last couple of years.
| 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
1MDT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1MDT has been reduced compared to 1 year ago.
1MDT has less shares outstanding than it did 5 years ago.
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.
The Altman-Z score of 1MDT (2.98) is comparable to the rest of the industry.
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.
Looking at the Debt to Equity ratio, with a value of 0.55, 1MDT is doing worse than 66.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.39 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.02
WACC6.6%
2.3 Liquidity
A Current Ratio of 2.01 indicates that 1MDT has no problem at all paying its short term obligations.
1MDT has a better Current ratio (2.01) than 61.02% of its industry peers.
A Quick Ratio of 1.50 indicates that 1MDT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, 1MDT is in the better half of the industry, outperforming 69.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.53% over the past year.
Measured over the past 5 years, 1MDT shows a small growth in Earnings Per Share. The EPS has been growing by 3.68% on average per year.
The Revenue has been growing slightly by 4.98% in the past year.
1MDT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.01% yearly.
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
The Earnings Per Share is expected to grow by 6.47% on average over the next years.
The Revenue is expected to grow by 5.37% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.39 indicates a rather expensive valuation of 1MDT.
Based on the Price/Earnings ratio, 1MDT is valued cheaper than 86.44% of the companies in the same industry.
1MDT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
1MDT is valuated correctly with a Price/Forward Earnings ratio of 15.66.
Based on the Price/Forward Earnings ratio, 1MDT is valued a bit cheaper than the industry average as 76.27% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, 1MDT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MDT is valued a bit cheaper than the industry average as 62.71% of the companies are valued more expensively.
76.27% of the companies in the same industry are more expensive than 1MDT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.25 | ||
| EV/EBITDA | 14.2 |
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)5.2
PEG (5Y)4.72
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 2.32.
| 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 | 17.39 | ||
| Fwd PE | 15.66 | ||
| P/S | 3.6 | ||
| P/FCF | 23.25 | ||
| P/OCF | 17.25 | ||
| P/B | 2.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.2 |
EPS(TTM)4.77
EY5.75%
EPS(NY)5.3
Fwd EY6.39%
FCF(TTM)3.57
FCFY4.3%
OCF(TTM)4.81
OCFY5.8%
SpS23.01
BVpS32.22
TBVpS-3.59
PEG (NY)5.2
PEG (5Y)4.72
Graham Number58.81
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%