MEDTRONIC PLC (2M6.DE) Stock Fundamental Analysis
FRA:2M6 - Deutsche Boerse Ag - IE00BTN1Y115 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 2M6. 2M6 was compared to 53 industry peers in the Health Care Equipment & Supplies industry. While 2M6 has a great profitability rating, 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
In the past year 2M6 was profitable.
In the past year 2M6 had a positive cash flow from operations.
2M6 had positive earnings in each of the past 5 years.
2M6 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
2M6 has a Return On Assets of 4.73%. This is in the better half of the industry: 2M6 outperforms 73.58% of its industry peers.
2M6 has a Return On Equity of 8.63%. This is in the better half of the industry: 2M6 outperforms 69.81% of its industry peers.
The Return On Invested Capital of 2M6 (6.09%) is better than 67.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 2M6 is below the industry average of 8.25%.
The last Return On Invested Capital (6.09%) for 2M6 is above the 3 year average (5.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 8.63% | ||
| ROIC | 6.09% |
ROA(3y)4.59%
ROA(5y)4.58%
ROE(3y)8.07%
ROE(5y)8.13%
ROIC(3y)5.95%
ROIC(5y)5.53%
1.3 Margins
Looking at the Profit Margin, with a value of 12.83%, 2M6 belongs to the top of the industry, outperforming 83.02% of the companies in the same industry.
In the last couple of years the Profit Margin of 2M6 has declined.
2M6 has a Operating Margin of 19.47%. This is amongst the best in the industry. 2M6 outperforms 88.68% of its industry peers.
In the last couple of years the Operating Margin of 2M6 has declined.
With a decent Gross Margin value of 65.59%, 2M6 is doing good in the industry, outperforming 66.04% of the companies in the same industry.
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 | 19.47% | ||
| PM (TTM) | 12.83% | ||
| GM | 65.59% |
OM growth 3Y1.83%
OM growth 5Y-3.49%
PM growth 3Y-1.74%
PM growth 5Y-5.6%
GM growth 3Y0.06%
GM growth 5Y-1.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 2M6 is destroying value.
The number of shares outstanding for 2M6 has been reduced compared to 1 year ago.
2M6 has less shares outstanding than it did 5 years ago.
2M6 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.83 indicates that 2M6 is not a great score, but indicates only limited risk for bankruptcy at the moment.
2M6 has a Altman-Z score of 2.83. This is in the better half of the industry: 2M6 outperforms 67.92% of its industry peers.
2M6 has a debt to FCF ratio of 4.87. This is a neutral value as 2M6 would need 4.87 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.87, 2M6 is doing good in the industry, outperforming 67.92% of the companies in the same industry.
2M6 has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.49, 2M6 perfoms like the industry average, outperforming 49.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.91
WACC6.72%
2.3 Liquidity
A Current Ratio of 1.90 indicates that 2M6 should not have too much problems paying its short term obligations.
2M6's Current ratio of 1.90 is in line compared to the rest of the industry. 2M6 outperforms 58.49% of its industry peers.
A Quick Ratio of 1.43 indicates that 2M6 should not have too much problems paying its short term obligations.
2M6 has a better Quick ratio (1.43) than 71.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
2M6 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.38%.
2M6 shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.04% yearly.
The Revenue has been growing slightly by 2.72% in the past year.
Measured over the past years, 2M6 shows a small growth in Revenue. The Revenue has been growing by 1.16% on average per year.
EPS 1Y (TTM)0.38%
EPS 3Y5.55%
EPS 5Y-0.04%
EPS Q2Q%6.92%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y2.43%
Revenue growth 5Y1.16%
Sales Q2Q%2.51%
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 7.01% on average per year.
The Revenue is expected to grow by 4.70% on average over the next years.
EPS Next Y5.72%
EPS Next 2Y6.3%
EPS Next 3Y6.82%
EPS Next 5Y7.01%
Revenue Next Year3.9%
Revenue Next 2Y4.18%
Revenue Next 3Y4.49%
Revenue Next 5Y4.7%
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
With a Price/Earnings ratio of 15.76, 2M6 is valued correctly.
Based on the Price/Earnings ratio, 2M6 is valued cheaper than 86.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of 2M6 to the average of the S&P500 Index (28.18), we can say 2M6 is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.30, which indicates a correct valuation of 2M6.
75.47% of the companies in the same industry are more expensive than 2M6, based on the Price/Forward Earnings ratio.
2M6's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 2M6 indicates a rather cheap valuation: 2M6 is cheaper than 83.02% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 2M6 is valued cheaper than 84.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.76 | ||
| EV/EBITDA | 13.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
2M6 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)N/A
EPS Next 2Y6.3%
EPS Next 3Y6.82%
5. Dividend
5.1 Amount
2M6 has a Yearly Dividend Yield of 3.35%.
2M6's Dividend Yield is rather good when compared to the industry average which is at 2.47. 2M6 pays more dividend than 90.57% of the companies in the same industry.
2M6's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
On average, the dividend of 2M6 grows each year by 6.78%, which is quite nice.
Dividend Growth(5Y)6.78%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
84.62% of the earnings are spent on dividend by 2M6. This is not a sustainable payout ratio.
2M6's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP84.62%
EPS Next 2Y6.3%
EPS Next 3Y6.82%
FRA:2M6 (5/2/2025, 7:00:00 PM)
74.24
+0.32 (+0.43%)
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 Cap95.22B
Analysts71.58
Price Target84.96 (14.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend2.45
Dividend Growth(5Y)6.78%
DP84.62%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.56%
Min EPS beat(2)-0.08%
Max EPS beat(2)1.21%
EPS beat(4)2
Avg EPS beat(4)0.62%
Min EPS beat(4)-0.31%
Max EPS beat(4)1.65%
EPS beat(8)5
Avg EPS beat(8)2.04%
EPS beat(12)7
Avg EPS beat(12)1.23%
EPS beat(16)10
Avg EPS beat(16)1.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)0.59%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.8%
Revenue beat(8)6
Avg Revenue beat(8)0.54%
Revenue beat(12)8
Avg Revenue beat(12)-0.03%
Revenue beat(16)9
Avg Revenue beat(16)-0.32%
PT rev (1m)-5.14%
PT rev (3m)-6.82%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 14.3 | ||
| P/S | 3.25 | ||
| P/FCF | 19.76 | ||
| P/OCF | 14.81 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.13 |
EPS(TTM)4.71
EY6.34%
EPS(NY)5.19
Fwd EY6.99%
FCF(TTM)3.76
FCFY5.06%
OCF(TTM)5.01
OCFY6.75%
SpS22.82
BVpS33.95
TBVpS-2.49
PEG (NY)2.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 8.63% | ||
| ROCE | 8.27% | ||
| ROIC | 6.09% | ||
| ROICexc | 6.77% | ||
| ROICexgc | 27.64% | ||
| OM | 19.47% | ||
| PM (TTM) | 12.83% | ||
| GM | 65.59% | ||
| FCFM | 16.46% |
ROA(3y)4.59%
ROA(5y)4.58%
ROE(3y)8.07%
ROE(5y)8.13%
ROIC(3y)5.95%
ROIC(5y)5.53%
ROICexc(3y)6.7%
ROICexc(5y)6.28%
ROICexgc(3y)31.86%
ROICexgc(5y)32.58%
ROCE(3y)8.09%
ROCE(5y)7.51%
ROICexcg growth 3Y-2.06%
ROICexcg growth 5Y-10.72%
ROICexc growth 3Y5.54%
ROICexc growth 5Y-2.32%
OM growth 3Y1.83%
OM growth 5Y-3.49%
PM growth 3Y-1.74%
PM growth 5Y-5.6%
GM growth 3Y0.06%
GM growth 5Y-1.35%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 68.26% | ||
| Cap/Sales | 5.5% | ||
| Interest Coverage | 7.84 | ||
| Cash Conversion | 79.78% | ||
| Profit Quality | 128.31% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 2.83 |
F-Score6
WACC6.72%
ROIC/WACC0.91
Cap/Depr(3y)54.86%
Cap/Depr(5y)52.06%
Cap/Sales(3y)4.63%
Cap/Sales(5y)4.52%
Profit Quality(3y)127.33%
Profit Quality(5y)128.64%
High Growth Momentum
Growth
EPS 1Y (TTM)0.38%
EPS 3Y5.55%
EPS 5Y-0.04%
EPS Q2Q%6.92%
EPS Next Y5.72%
EPS Next 2Y6.3%
EPS Next 3Y6.82%
EPS Next 5Y7.01%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y2.43%
Revenue growth 5Y1.16%
Sales Q2Q%2.51%
Revenue Next Year3.9%
Revenue Next 2Y4.18%
Revenue Next 3Y4.49%
Revenue Next 5Y4.7%
EBIT growth 1Y0.33%
EBIT growth 3Y4.3%
EBIT growth 5Y-2.37%
EBIT Next Year17.45%
EBIT Next 3Y10.11%
EBIT Next 5Y2.66%
FCF growth 1Y31.17%
FCF growth 3Y2.1%
FCF growth 5Y-2.4%
OCF growth 1Y29.36%
OCF growth 3Y2.84%
OCF growth 5Y-0.64%