MEDTRONIC PLC (2M6.DE) Stock Fundamental Analysis
FRA:2M6 - Deutsche Boerse Ag - IE00BTN1Y115 - Common Stock - Currency: EUR
Taking everything into account, 2M6 scores 5 out of 10 in our fundamental rating. 2M6 was compared to 59 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 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.
In the past 5 years 2M6 has always been profitable.
2M6 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
2M6's Return On Assets of 5.09% is fine compared to the rest of the industry. 2M6 outperforms 73.33% of its industry peers.
2M6's Return On Equity of 9.71% is fine compared to the rest of the industry. 2M6 outperforms 70.00% of its industry peers.
With a Return On Invested Capital value of 6.67%, 2M6 perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 2M6 is in line with the industry average of 8.10%.
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's Profit Margin of 13.90% is amongst the best of the industry. 2M6 outperforms 81.67% 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 85.00% 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 65.00% 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 | 19.61% | ||
| 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
2M6 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 2M6 has been reduced compared to 1 year ago.
Compared to 5 years ago, 2M6 has less shares outstanding
The debt/assets ratio for 2M6 is higher compared to a year ago.
2.2 Solvency
2M6 has an Altman-Z score of 2.84. 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.
With a Altman-Z score value of 2.84, 2M6 perfoms like the industry average, outperforming 60.00% of the companies in the same 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.
The Debt to FCF ratio of 2M6 (5.50) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.53 indicates that 2M6 is somewhat dependend on debt financing.
2M6 has a worse Debt to Equity ratio (0.53) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.03
WACC6.49%
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.
With a Current ratio value of 1.85, 2M6 perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.42, 2M6 is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
2M6 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.57%.
The Earnings Per Share has been growing slightly by 3.68% on average over the past years.
The Revenue has been growing slightly by 3.62% in the past 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
The Earnings Per Share is expected to grow by 6.26% on average over the next years.
Based on estimates for the next years, 2M6 will show a small growth in Revenue. The Revenue will grow by 5.13% on average per year.
EPS Next Y1.94%
EPS Next 2Y4.85%
EPS Next 3Y5.79%
EPS Next 5Y6.26%
Revenue Next Year5.4%
Revenue Next 2Y5.33%
Revenue Next 3Y5.17%
Revenue Next 5Y5.13%
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
2M6 is valuated correctly with a Price/Earnings ratio of 16.70.
2M6's Price/Earnings ratio is rather cheap when compared to the industry. 2M6 is cheaper than 88.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, 2M6 is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.37, the valuation of 2M6 can be described as correct.
2M6's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 2M6 is cheaper than 73.33% of the companies in the same industry.
2M6 is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 16.37 |
4.2 Price Multiples
73.33% 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 78.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.69 | ||
| EV/EBITDA | 13.82 |
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)8.6
PEG (5Y)4.53
EPS Next 2Y4.85%
EPS Next 3Y5.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.11%, 2M6 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.11, 2M6 pays a better dividend. On top of this 2M6 pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, 2M6 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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 76.98% 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.
DP76.98%
EPS Next 2Y4.85%
EPS Next 3Y5.79%
FRA:2M6 (8/8/2025, 7:00:00 PM)
78.82
+0.84 (+1.08%)
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 Cap100.99B
Analysts73.85
Price Target85.24 (8.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend2.38
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)0.54%
PT rev (3m)-2.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.12%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.77%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 16.37 | ||
| P/S | 3.51 | ||
| P/FCF | 22.69 | ||
| P/OCF | 16.7 | ||
| P/B | 2.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.82 |
EPS(TTM)4.72
EY5.99%
EPS(NY)4.81
Fwd EY6.11%
FCF(TTM)3.47
FCFY4.41%
OCF(TTM)4.72
OCFY5.99%
SpS22.47
BVpS32.18
TBVpS-3.6
PEG (NY)8.6
PEG (5Y)4.53
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 | 2.84 |
F-Score6
WACC6.49%
ROIC/WACC1.03
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 Y1.94%
EPS Next 2Y4.85%
EPS Next 3Y5.79%
EPS Next 5Y6.26%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%3.94%
Revenue Next Year5.4%
Revenue Next 2Y5.33%
Revenue Next 3Y5.17%
Revenue Next 5Y5.13%
EBIT growth 1Y7.42%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year18.1%
EBIT Next 3Y9.83%
EBIT Next 5Y8.8%
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%