MEDTRONIC PLC (1MDT.MI) Stock Fundamental Analysis
BIT:1MDT - Euronext Milan - IE00BTN1Y115 - Common Stock - Currency: EUR
1MDT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Health Care Equipment & Supplies industry. While 1MDT has a great profitability rating, there are some minor concerns on its financial health. 1MDT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1MDT had positive earnings in the past year.
1MDT had a positive operating cash flow in the past year.
Each year in the past 5 years 1MDT has been profitable.
1MDT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1MDT has a better Return On Assets (5.09%) than 71.67% of its industry peers.
1MDT has a better Return On Equity (9.71%) than 70.00% of its industry peers.
With a decent Return On Invested Capital value of 6.74%, 1MDT is doing good in the industry, outperforming 61.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1MDT is in line with the industry average of 8.22%.
The last Return On Invested Capital (6.74%) for 1MDT is above the 3 year average (6.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 9.71% | ||
| ROIC | 6.74% |
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.4%
ROIC(5y)6.26%
1.3 Margins
1MDT has a better Profit Margin (13.90%) than 80.00% of its industry peers.
1MDT's Profit Margin has declined in the last couple of years.
1MDT has a Operating Margin of 19.80%. This is amongst the best in the industry. 1MDT outperforms 85.00% of its industry peers.
In the last couple of years the Operating Margin of 1MDT has remained more or less at the same level.
Looking at the Gross Margin, with a value of 65.48%, 1MDT is in the better half of the industry, outperforming 61.67% 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 | 19.8% | ||
| PM (TTM) | 13.9% | ||
| GM | 65.48% |
OM growth 3Y-2.78%
OM growth 5Y0.8%
PM growth 3Y-4.39%
PM growth 5Y-3.44%
GM growth 3Y-1.44%
GM growth 5Y-0.69%
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.
1MDT has less shares outstanding than it did 1 year ago.
1MDT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1MDT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.75 indicates that 1MDT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.75, 1MDT perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
1MDT has a debt to FCF ratio of 5.50. This is a neutral value as 1MDT would need 5.50 years to pay back of all of its debts.
1MDT has a Debt to FCF ratio (5.50) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.53 indicates that 1MDT is somewhat dependend on debt financing.
The Debt to Equity ratio of 1MDT (0.53) is worse than 61.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.02
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.85 indicates that 1MDT should not have too much problems paying its short term obligations.
The Current ratio of 1MDT (1.85) is comparable to the rest of the industry.
A Quick Ratio of 1.42 indicates that 1MDT should not have too much problems paying its short term obligations.
1MDT has a Quick ratio of 1.42. This is in the better half of the industry: 1MDT outperforms 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
1MDT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.57%.
The Earnings Per Share has been growing slightly by 3.68% on average over the past years.
1MDT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.62%.
The Revenue has been growing slightly by 3.01% on average over the past years.
EPS 1Y (TTM)5.57%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%10.96%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%3.94%
3.2 Future
The Earnings Per Share is expected to grow by 7.67% on average over the next years.
Based on estimates for the next years, 1MDT will show a small growth in Revenue. The Revenue will grow by 5.03% on average per year.
EPS Next Y7.04%
EPS Next 2Y7.32%
EPS Next 3Y7.31%
EPS Next 5Y7.67%
Revenue Next Year4.48%
Revenue Next 2Y4.78%
Revenue Next 3Y4.85%
Revenue Next 5Y5.03%
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.
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
Based on the Price/Earnings ratio of 15.44, the valuation of 1MDT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of 1MDT indicates a rather cheap valuation: 1MDT is cheaper than 85.00% of the companies listed in the same industry.
1MDT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.42, the valuation of 1MDT can be described as correct.
Based on the Price/Forward Earnings ratio, 1MDT is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.44. 1MDT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MDT is valued a bit cheaper than 78.33% of the companies in the same industry.
1MDT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1MDT is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21 | ||
| EV/EBITDA | 13.03 |
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)2.19
PEG (5Y)4.19
EPS Next 2Y7.32%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
1MDT has a Yearly Dividend Yield of 3.45%.
Compared to an average industry Dividend Yield of 2.07, 1MDT pays a better dividend. On top of this 1MDT pays more dividend than 91.67% of the companies listed in the same industry.
1MDT's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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
76.97% of the earnings are spent on dividend by 1MDT. This is not a sustainable payout ratio.
The dividend of 1MDT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.97%
EPS Next 2Y7.32%
EPS Next 3Y7.31%
BIT:1MDT (6/4/2025, 7:00:00 PM)
74.88
-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 Cap96.04B
Analysts71.58
Price Target87.37 (16.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend2.44
Dividend Growth(5Y)5.1%
DP76.97%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.4%
Min EPS beat(2)1.21%
Max EPS beat(2)1.59%
EPS beat(4)3
Avg EPS beat(4)1.09%
Min EPS beat(4)-0.08%
Max EPS beat(4)1.65%
EPS beat(8)6
Avg EPS beat(8)2.27%
EPS beat(12)8
Avg EPS beat(12)1.68%
EPS beat(16)10
Avg EPS beat(16)1.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)0.17%
Revenue beat(4)3
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.59%
Revenue beat(8)6
Avg Revenue beat(8)0.24%
Revenue beat(12)9
Avg Revenue beat(12)0.4%
Revenue beat(16)10
Avg Revenue beat(16)-0.28%
PT rev (1m)-1.94%
PT rev (3m)0.37%
EPS NQ rev (1m)-6.73%
EPS NQ rev (3m)-6.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.42 | ||
| P/S | 3.25 | ||
| P/FCF | 21 | ||
| P/OCF | 15.46 | ||
| P/B | 2.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.03 |
EPS(TTM)4.85
EY6.48%
EPS(NY)5.19
Fwd EY6.93%
FCF(TTM)3.57
FCFY4.76%
OCF(TTM)4.84
OCFY6.47%
SpS23.06
BVpS33.02
TBVpS-3.7
PEG (NY)2.19
PEG (5Y)4.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 9.71% | ||
| ROCE | 8.43% | ||
| ROIC | 6.74% | ||
| ROICexc | 7.61% | ||
| ROICexgc | 32.33% | ||
| OM | 19.8% | ||
| PM (TTM) | 13.9% | ||
| GM | 65.48% | ||
| FCFM | 15.46% |
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.4%
ROIC(5y)6.26%
ROICexc(3y)7.14%
ROICexc(5y)7.08%
ROICexgc(3y)30.08%
ROICexgc(5y)33.46%
ROCE(3y)8%
ROCE(5y)7.83%
ROICexcg growth 3Y-10.99%
ROICexcg growth 5Y-5.11%
ROICexc growth 3Y-1.79%
ROICexc growth 5Y3.7%
OM growth 3Y-2.78%
OM growth 5Y0.8%
PM growth 3Y-4.39%
PM growth 5Y-3.44%
GM growth 3Y-1.44%
GM growth 5Y-0.69%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 64.98% | ||
| Cap/Sales | 5.54% | ||
| Interest Coverage | 8.72 | ||
| Cash Conversion | 74.12% | ||
| Profit Quality | 111.2% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.75 |
F-Score6
WACC6.64%
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)5.57%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%10.96%
EPS Next Y7.04%
EPS Next 2Y7.32%
EPS Next 3Y7.31%
EPS Next 5Y7.67%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%3.94%
Revenue Next Year4.48%
Revenue Next 2Y4.78%
Revenue Next 3Y4.85%
Revenue Next 5Y5.03%
EBIT growth 1Y8.51%
EBIT growth 3Y-0.93%
EBIT growth 5Y3.84%
EBIT Next Year19.91%
EBIT Next 3Y9.99%
EBIT Next 5Y11.09%
FCF growth 1Y-0.29%
FCF growth 3Y-4.64%
FCF growth 5Y-2.95%
OCF growth 1Y3.79%
OCF growth 3Y-1.39%
OCF growth 5Y-0.53%