MEDTRONIC PLC (2M6.DE) Stock Fundamental Analysis
Europe - FRA:2M6 - IE00BTN1Y115 - Common Stock
79.32 EUR
-1.19 (-1.48%)
Taking everything into account, 2M6 scores 5 out of 10 in our fundamental rating. 2M6 was compared to 62 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
2M6's Return On Assets of 5.12% is fine compared to the rest of the industry. 2M6 outperforms 66.13% of its industry peers.
Looking at the Return On Equity, with a value of 9.73%, 2M6 is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
The Return On Invested Capital of 2M6 (6.74%) is better than 62.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 2M6 is below the industry average of 8.76%.
The 3 year average ROIC (6.35%) for 2M6 is below the current ROIC(6.74%), indicating increased profibility in the last year.
| 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
2M6 has a Profit Margin of 13.63%. This is amongst the best in the industry. 2M6 outperforms 82.26% of its industry peers.
In the last couple of years the Profit Margin of 2M6 has declined.
2M6 has a Operating Margin of 19.57%. This is amongst the best in the industry. 2M6 outperforms 87.10% of its industry peers.
In the last couple of years the Operating Margin of 2M6 has remained more or less at the same level.
2M6's Gross Margin of 65.38% is fine compared to the rest of the industry. 2M6 outperforms 69.35% 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 | 19.57% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 2M6 is destroying value.
Compared to 1 year ago, 2M6 has less shares outstanding
2M6 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 2M6 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.91 indicates that 2M6 is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of 2M6 (2.91) is comparable to the rest of the industry.
2M6 has a debt to FCF ratio of 5.39. This is a neutral value as 2M6 would need 5.39 years to pay back of all of its debts.
2M6 has a Debt to FCF ratio (5.39) which is in line with its industry peers.
2M6 has a Debt/Equity ratio of 0.55. This is a neutral value indicating 2M6 is somewhat dependend on debt financing.
2M6 has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: 2M6 underperforms 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.39 | ||
| Altman-Z | 2.91 |
ROIC/WACC1
WACC6.76%
2.3 Liquidity
A Current Ratio of 2.01 indicates that 2M6 has no problem at all paying its short term obligations.
With a Current ratio value of 2.01, 2M6 perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that 2M6 should not have too much problems paying its short term obligations.
2M6 has a better Quick ratio (1.50) than 66.13% of its industry peers.
| 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.
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.
The Revenue has been growing slightly by 3.01% on average over the past years.
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.
2M6 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.37% yearly.
EPS Next Y3.31%
EPS Next 2Y5.62%
EPS Next 3Y6.2%
EPS Next 5Y6.47%
Revenue Next Year7.02%
Revenue Next 2Y6.24%
Revenue Next 3Y5.84%
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
The Price/Earnings ratio is 16.70, which indicates a correct valuation of 2M6.
2M6's Price/Earnings ratio is rather cheap when compared to the industry. 2M6 is cheaper than 88.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of 2M6 to the average of the S&P500 Index (26.76), we can say 2M6 is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.04, the valuation of 2M6 can be described as correct.
77.42% 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 22.63, 2M6 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 15.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2M6 is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 2M6 is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.32 | ||
| EV/EBITDA | 13.7 |
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)5.04
PEG (5Y)4.53
EPS Next 2Y5.62%
EPS Next 3Y6.2%
5. Dividend
5.1 Amount
2M6 has a Yearly Dividend Yield of 3.01%. Purely for dividend investing, there may be better candidates out there.
2M6's Dividend Yield is rather good when compared to the industry average which is at 2.23. 2M6 pays more dividend than 91.94% of the companies in the same industry.
2M6's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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
2M6 pays out 77.27% 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.
DP77.27%
EPS Next 2Y5.62%
EPS Next 3Y6.2%
FRA:2M6 (10/29/2025, 7:00:00 PM)
79.32
-1.19 (-1.48%)
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 Cap101.74B
Revenue(TTM)34.20B
Net Income(TTM)4.66B
Analysts73.33
Price Target86.04 (8.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend2.38
Dividend Growth(5Y)5.1%
DP77.27%
Div Incr Years7
Div Non Decr Years7
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)0.12%
PT rev (3m)1.45%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 15.04 | ||
| P/S | 3.46 | ||
| P/FCF | 22.32 | ||
| P/OCF | 16.57 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.7 |
EPS(TTM)4.75
EY5.99%
EPS(NY)5.27
Fwd EY6.65%
FCF(TTM)3.55
FCFY4.48%
OCF(TTM)4.79
OCFY6.04%
SpS22.91
BVpS32.09
TBVpS-3.58
PEG (NY)5.04
PEG (5Y)4.53
Graham Number58.56
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 | 2.91 |
F-Score7
WACC6.76%
ROIC/WACC1
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 Y3.31%
EPS Next 2Y5.62%
EPS Next 3Y6.2%
EPS Next 5Y6.47%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%6.68%
Revenue Next Year7.02%
Revenue Next 2Y6.24%
Revenue Next 3Y5.84%
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%
MEDTRONIC PLC / 2M6.DE FAQ
What is the ChartMill fundamental rating of MEDTRONIC PLC (2M6.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 2M6.DE.
What is the valuation status of MEDTRONIC PLC (2M6.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to MEDTRONIC PLC (2M6.DE). This can be considered as Fairly Valued.
How profitable is MEDTRONIC PLC (2M6.DE) stock?
MEDTRONIC PLC (2M6.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of MEDTRONIC PLC (2M6.DE) stock?
The Price/Earnings (PE) ratio for MEDTRONIC PLC (2M6.DE) is 16.7 and the Price/Book (PB) ratio is 2.47.
How financially healthy is MEDTRONIC PLC?
The financial health rating of MEDTRONIC PLC (2M6.DE) is 5 / 10.