MEDTRONIC PLC (2M6.DE) Stock Fundamental Analysis
FRA:2M6 - Deutsche Boerse Ag - IE00BTN1Y115 - Common Stock - Currency: EUR
Overall 2M6 gets a fundamental rating of 6 out of 10. We evaluated 2M6 against 58 industry peers in the Health Care Equipment & Supplies industry. While 2M6 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 2M6 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
2M6 had positive earnings in the past year.
2M6 had a positive operating cash flow in the past year.
Each year in the past 5 years 2M6 has been profitable.
In the past 5 years 2M6 always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 2M6 (5.09%) is better than 74.14% of its industry peers.
2M6's Return On Equity of 9.71% is fine compared to the rest of the industry. 2M6 outperforms 72.41% of its industry peers.
With a decent Return On Invested Capital value of 6.74%, 2M6 is doing good in the industry, outperforming 65.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 2M6 is below the industry average of 8.41%.
The last Return On Invested Capital (6.74%) for 2M6 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
2M6 has a Profit Margin of 13.90%. This is amongst the best in the industry. 2M6 outperforms 81.03% of its industry peers.
In the last couple of years the Profit Margin of 2M6 has declined.
2M6 has a better Operating Margin (19.80%) than 87.93% of its industry peers.
In the last couple of years the Operating Margin of 2M6 has remained more or less at the same level.
The Gross Margin of 2M6 (65.48%) is better than 65.52% of its industry peers.
In the last couple of years the Gross Margin of 2M6 has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 2M6 is creating some value.
2M6 has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 2M6 has been reduced compared to 5 years ago.
The debt/assets ratio for 2M6 is higher compared to a year ago.
2.2 Solvency
2M6 has an Altman-Z score of 2.67. This is not the best score and indicates that 2M6 is in the grey zone with still only limited risk for bankruptcy at the moment.
2M6 has a Altman-Z score of 2.67. This is in the better half of the industry: 2M6 outperforms 63.79% of its industry peers.
2M6 has a debt to FCF ratio of 5.50. This is a neutral value as 2M6 would need 5.50 years to pay back of all of its debts.
The Debt to FCF ratio of 2M6 (5.50) is better than 63.79% of its industry peers.
2M6 has a Debt/Equity ratio of 0.53. This is a neutral value indicating 2M6 is somewhat dependend on debt financing.
2M6 has a Debt to Equity ratio (0.53) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.02
WACC6.59%
2.3 Liquidity
2M6 has a Current Ratio of 1.85. This is a normal value and indicates that 2M6 is financially healthy and should not expect problems in meeting its short term obligations.
2M6 has a Current ratio of 1.85. This is comparable to the rest of the industry: 2M6 outperforms 58.62% of its industry peers.
2M6 has a Quick Ratio of 1.42. This is a normal value and indicates that 2M6 is financially healthy and should not expect problems in meeting its short term obligations.
2M6 has a better Quick ratio (1.42) than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.57% over the past year.
2M6 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, 2M6 shows a small growth in Revenue. The Revenue has grown by 3.62% in the last year.
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
Based on estimates for the next years, 2M6 will show a small growth in Earnings Per Share. The EPS will grow by 7.67% on average per year.
2M6 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.03% yearly.
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
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
The Price/Earnings ratio is 14.85, which indicates a correct valuation of 2M6.
Based on the Price/Earnings ratio, 2M6 is valued cheaper than 86.21% of the companies in the same industry.
2M6 is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.88, which indicates a correct valuation of 2M6.
79.31% of the companies in the same industry are more expensive than 2M6, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, 2M6 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 13.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2M6 is valued cheaper than 82.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 2M6 is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.22 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 2M6 may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)4.03
EPS Next 2Y7.32%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
2M6 has a Yearly Dividend Yield of 3.45%.
2M6's Dividend Yield is rather good when compared to the industry average which is at 2.19. 2M6 pays more dividend than 91.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 2M6 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of 2M6 has a limited annual growth rate of 5.10%.
Dividend Growth(5Y)5.1%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
2M6 pays out 76.97% of its income as dividend. This is not a sustainable payout ratio.
2M6's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP76.97%
EPS Next 2Y7.32%
EPS Next 3Y7.31%
FRA:2M6 (5/30/2025, 7:00:00 PM)
72.46
+0.35 (+0.49%)
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 Cap92.93B
Analysts71.58
Price Target87.01 (20.08%)
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 Years6
Div Non Decr Years6
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)-3.56%
PT rev (3m)-4.56%
EPS NQ rev (1m)-6.73%
EPS NQ rev (3m)-6.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 13.88 | ||
| P/S | 3.13 | ||
| P/FCF | 20.22 | ||
| P/OCF | 14.88 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.41 |
EPS(TTM)4.88
EY6.73%
EPS(NY)5.22
Fwd EY7.2%
FCF(TTM)3.58
FCFY4.95%
OCF(TTM)4.87
OCFY6.72%
SpS23.18
BVpS33.19
TBVpS-3.72
PEG (NY)2.11
PEG (5Y)4.03
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 | 2.67 |
F-Score6
WACC6.59%
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 Year19.95%
EBIT Next 3Y10%
EBIT Next 5Y11.1%
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%