MEDTRONIC PLC (2M6.DE) Stock Fundamental Analysis
FRA:2M6 - IE00BTN1Y115 - Common Stock
79.44 EUR
-0.7 (-0.87%)
Overall 2M6 gets a fundamental rating of 5 out of 10. We evaluated 2M6 against 57 industry peers in the Health Care Equipment & Supplies industry. 2M6 scores excellent on profitability, but there are some minor concerns on its financial health. 2M6 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
2M6 had positive earnings in the past year.
In the past year 2M6 had a positive cash flow from operations.
Each year in the past 5 years 2M6 has been profitable.
Each year in the past 5 years 2M6 had a positive operating cash flow.
1.2 Ratios
2M6's Return On Assets of 5.09% is fine compared to the rest of the industry. 2M6 outperforms 70.18% of its industry peers.
2M6 has a better Return On Equity (9.71%) than 66.67% of its industry peers.
With a decent Return On Invested Capital value of 6.67%, 2M6 is doing good in the industry, outperforming 64.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 2M6 is below the industry average of 8.81%.
The 3 year average ROIC (6.35%) for 2M6 is below the current ROIC(6.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 9.71% | ||
| ROIC | 6.67% |
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
2M6 has a better Profit Margin (13.90%) than 82.46% of its industry peers.
2M6's Profit Margin has declined in the last couple of years.
2M6 has a Operating Margin of 19.61%. This is amongst the best in the industry. 2M6 outperforms 85.96% of its industry peers.
2M6's Operating Margin has been stable in the last couple of years.
2M6 has a better Gross Margin (65.39%) than 68.42% of its industry peers.
2M6's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.61% | ||
| PM (TTM) | 13.9% | ||
| GM | 65.39% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 2M6 is still 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.
2M6 has a worse debt/assets ratio than last year.
2.2 Solvency
2M6 has an Altman-Z score of 2.86. 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.
The Altman-Z score of 2M6 (2.86) is comparable to the rest of the industry.
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.
2M6 has a Debt to FCF ratio (5.50) which is comparable to the rest of the industry.
2M6 has a Debt/Equity ratio of 0.53. This is a neutral value indicating 2M6 is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, 2M6 is not doing good in the industry: 64.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.04
WACC6.41%
2.3 Liquidity
A Current Ratio of 1.85 indicates that 2M6 should not have too much problems paying its short term obligations.
2M6 has a Current ratio (1.85) which is in line with its industry peers.
A Quick Ratio of 1.42 indicates that 2M6 should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.42, 2M6 is doing good in the industry, outperforming 70.18% of the companies in the same industry.
| 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 5.53% 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.
The Revenue has been growing slightly by 4.98% in the past year.
Measured over the past years, 2M6 shows a small growth in Revenue. The Revenue has been growing by 3.01% on average per year.
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
2M6 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, 2M6 will show a small growth in Revenue. The Revenue will grow by 5.37% on average per year.
EPS Next Y3.08%
EPS Next 2Y5.47%
EPS Next 3Y6.1%
EPS Next 5Y6.47%
Revenue Next Year6.63%
Revenue Next 2Y6.01%
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.
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
Based on the Price/Earnings ratio of 16.79, the valuation of 2M6 can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of 2M6 indicates a rather cheap valuation: 2M6 is cheaper than 87.72% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 2M6 to the average of the S&P500 Index (27.06), we can say 2M6 is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.19, the valuation of 2M6 can be described as correct.
2M6's Price/Forward Earnings ratio is rather cheap when compared to the industry. 2M6 is cheaper than 82.46% of the companies in the same industry.
2M6's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.79 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
70.18% of the companies in the same industry are more expensive than 2M6, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 2M6 is valued a bit cheaper than 75.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.99 | ||
| EV/EBITDA | 13.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 2M6 does not grow enough to justify the current Price/Earnings ratio.
2M6 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.45
PEG (5Y)4.56
EPS Next 2Y5.47%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, 2M6 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.34, 2M6 pays a better dividend. On top of this 2M6 pays more dividend than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, 2M6 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
The dividend of 2M6 has a limited annual growth rate of 5.10%.
Dividend Growth(5Y)5.1%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
76.98% of the earnings are spent on dividend by 2M6. This is not a sustainable payout ratio.
The dividend of 2M6 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.98%
EPS Next 2Y5.47%
EPS Next 3Y6.1%
FRA:2M6 (9/5/2025, 7:00:00 PM)
79.44
-0.7 (-0.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners86.73%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap101.90B
Analysts73.33
Price Target86.51 (8.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend2.37
Dividend Growth(5Y)5.1%
DP76.98%
Div Incr Years7
Div Non Decr Years7
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)2%
PT rev (3m)2.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)1.12%
EPS NY rev (3m)-3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.79 | ||
| Fwd PE | 15.19 | ||
| P/S | 3.55 | ||
| P/FCF | 22.99 | ||
| P/OCF | 16.92 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.99 |
EPS(TTM)4.73
EY5.95%
EPS(NY)5.23
Fwd EY6.58%
FCF(TTM)3.46
FCFY4.35%
OCF(TTM)4.69
OCFY5.91%
SpS22.35
BVpS32.01
TBVpS-3.59
PEG (NY)5.45
PEG (5Y)4.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 9.71% | ||
| ROCE | 8.34% | ||
| ROIC | 6.67% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 32% | ||
| OM | 19.61% | ||
| PM (TTM) | 13.9% | ||
| GM | 65.39% | ||
| FCFM | 15.46% |
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%
ROICexcg growth 3Y-11.61%
ROICexcg 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-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 64.98% | ||
| Cap/Sales | 5.54% | ||
| Interest Coverage | 8.63 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 111.22% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.86 |
F-Score6
WACC6.41%
ROIC/WACC1.04
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 Y3.08%
EPS Next 2Y5.47%
EPS Next 3Y6.1%
EPS Next 5Y6.47%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%6.68%
Revenue Next Year6.63%
Revenue Next 2Y6.01%
Revenue Next 3Y5.69%
Revenue Next 5Y5.37%
EBIT growth 1Y7.42%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year18.1%
EBIT Next 3Y10.79%
EBIT Next 5Y9.23%
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%