MEDTRONIC PLC (2M6.DE) Stock Fundamental Analysis
FRA:2M6 - Deutsche Boerse Ag - IE00BTN1Y115 - Common Stock - Currency: EUR
Taking everything into account, 2M6 scores 6 out of 10 in our fundamental rating. 2M6 was compared to 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 has a correct valuation and a medium growth rate.
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.
In the past 5 years 2M6 always reported a positive cash flow from operatings.
1.2 Ratios
2M6 has a Return On Assets of 5.09%. This is in the better half of the industry: 2M6 outperforms 74.14% of its industry peers.
2M6 has a Return On Equity of 9.71%. This is in the better half 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.
Measured over the past 3 years, the Average Return On Invested Capital 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.
2M6's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.80%, 2M6 belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.
2M6's Operating Margin has been stable in the last couple of years.
2M6's Gross Margin of 65.48% is fine compared to the rest of the industry. 2M6 outperforms 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.
Compared to 1 year ago, 2M6 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.66 indicates that 2M6 is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of 2M6 (2.66) is better than 63.79% of its industry peers.
The Debt to FCF ratio of 2M6 is 5.50, which is a neutral value as it means it would take 2M6, 5.50 years of fcf income to pay off 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 of 0.53. This is comparable to the rest of the industry: 2M6 outperforms 46.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.66 |
ROIC/WACC1.02
WACC6.58%
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 (1.85) which is comparable to the rest of the industry.
A Quick Ratio of 1.42 indicates that 2M6 should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.42, 2M6 is in the better half of the industry, outperforming 72.41% 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 5.57% 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.
2M6 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.
The Revenue is expected to grow by 5.03% on average over the next years.
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.
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 14.78, 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 91.38% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. 2M6 is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.80, 2M6 is valued correctly.
Based on the Price/Forward Earnings ratio, 2M6 is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
2M6's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 13.8 |
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.
2M6's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 2M6 is cheaper than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.1 | ||
| EV/EBITDA | 12.31 |
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.
The decent profitability rating of 2M6 may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)4.01
EPS Next 2Y7.32%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.36%, 2M6 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.19, 2M6 pays a better dividend. On top of this 2M6 pays more dividend than 91.38% of the companies listed 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 | 3.36% |
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
76.97% 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.
DP76.97%
EPS Next 2Y7.32%
EPS Next 3Y7.31%
FRA:2M6 (5/26/2025, 7:00:00 PM)
71.39
+0.45 (+0.63%)
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 Cap91.56B
Analysts71.58
Price Target87.01 (21.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Yearly Dividend2.45
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 | 14.78 | ||
| Fwd PE | 13.8 | ||
| P/S | 3.11 | ||
| P/FCF | 20.1 | ||
| P/OCF | 14.79 | ||
| P/B | 2.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.31 |
EPS(TTM)4.83
EY6.77%
EPS(NY)5.17
Fwd EY7.25%
FCF(TTM)3.55
FCFY4.98%
OCF(TTM)4.83
OCFY6.76%
SpS22.98
BVpS32.9
TBVpS-3.69
PEG (NY)2.1
PEG (5Y)4.01
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 | 2.66 |
F-Score6
WACC6.58%
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%