MEDTRONIC PLC (MDT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MDT - IE00BTN1Y115 - Common Stock
105.33 USD
+0.31 (+0.3%)
105.33 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to MDT. MDT was compared to 188 industry peers in the Health Care Equipment & Supplies industry. MDT has an excellent profitability rating, but there are some minor concerns on its financial health. MDT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MDT had positive earnings in the past year.
In the past year MDT had a positive cash flow from operations.
MDT had positive earnings in each of the past 5 years.
Each year in the past 5 years MDT had a positive operating cash flow.
1.2 Ratios
MDT has a better Return On Assets (5.22%) than 81.91% of its industry peers.
MDT has a Return On Equity of 9.79%. This is amongst the best in the industry. MDT outperforms 85.64% of its industry peers.
MDT has a better Return On Invested Capital (6.63%) than 81.38% of its industry peers.
MDT had an Average Return On Invested Capital over the past 3 years of 6.35%. This is below the industry average of 8.72%.
The 3 year average ROIC (6.35%) for MDT is below the current ROIC(6.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.79% | ||
| ROIC | 6.63% |
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
With an excellent Profit Margin value of 13.71%, MDT belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
MDT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.42%, MDT belongs to the top of the industry, outperforming 93.09% of the companies in the same industry.
MDT's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 65.57%, MDT is in the better half of the industry, outperforming 68.62% of the companies in the same industry.
In the last couple of years the Gross Margin of MDT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.42% | ||
| PM (TTM) | 13.71% | ||
| GM | 65.57% |
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 MDT is destroying value.
Compared to 1 year ago, MDT has less shares outstanding
Compared to 5 years ago, MDT has less shares outstanding
Compared to 1 year ago, MDT has a worse debt to assets ratio.
2.2 Solvency
MDT has an Altman-Z score of 3.20. This indicates that MDT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.20, MDT is in the better half of the industry, outperforming 71.28% of the companies in the same industry.
The Debt to FCF ratio of MDT is 5.59, which is a neutral value as it means it would take MDT, 5.59 years of fcf income to pay off all of its debts.
MDT has a Debt to FCF ratio of 5.59. This is in the better half of the industry: MDT outperforms 78.19% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that MDT is somewhat dependend on debt financing.
MDT has a worse Debt to Equity ratio (0.57) than 61.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.99
WACC6.72%
2.3 Liquidity
A Current Ratio of 2.42 indicates that MDT has no problem at all paying its short term obligations.
MDT has a Current ratio (2.42) which is in line with its industry peers.
A Quick Ratio of 1.80 indicates that MDT should not have too much problems paying its short term obligations.
MDT has a Quick ratio of 1.80. This is comparable to the rest of the industry: MDT outperforms 45.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.24% over the past year.
MDT 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 5.34% in the past year.
The Revenue has been growing slightly by 3.01% on average over the past years.
EPS 1Y (TTM)7.24%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%7.94%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%6.64%
3.2 Future
Based on estimates for the next years, MDT will show a small growth in Earnings Per Share. The EPS will grow by 6.35% on average per year.
The Revenue is expected to grow by 5.79% on average over the next years.
EPS Next Y3.31%
EPS Next 2Y5.62%
EPS Next 3Y6.29%
EPS Next 5Y6.35%
Revenue Next Year7.02%
Revenue Next 2Y6.24%
Revenue Next 3Y6.21%
Revenue Next 5Y5.79%
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
MDT is valuated rather expensively with a Price/Earnings ratio of 18.71.
Based on the Price/Earnings ratio, MDT is valued cheaper than 82.98% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. MDT is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.17, which indicates a rather expensive current valuation of MDT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 83.51% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MDT to the average of the S&P500 Index (36.56), we can say MDT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 17.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDT is valued cheaper than 82.98% of the companies in the same industry.
83.51% of the companies in the same industry are more expensive than MDT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.95 | ||
| EV/EBITDA | 15.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MDT does not grow enough to justify the current Price/Earnings ratio.
MDT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.64
PEG (5Y)5.08
EPS Next 2Y5.62%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
MDT has a Yearly Dividend Yield of 2.70%.
Compared to an average industry Dividend Yield of 1.71, MDT pays a better dividend. On top of this MDT pays more dividend than 98.40% of the companies listed in the same industry.
MDT's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
The dividend of MDT has a limited annual growth rate of 5.10%.
MDT has paid a dividend for at least 10 years, which is a reliable track record.
MDT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.1%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
MDT pays out 75.86% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MDT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.86%
EPS Next 2Y5.62%
EPS Next 3Y6.29%
105.33
+0.31 (+0.3%)
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 Change0.39%
Ins Owners0.29%
Ins Owner Change3.84%
Market Cap135.10B
Revenue(TTM)34.76B
Net Income(TTM)4.76B
Analysts72.82
Price Target103.15 (-2.07%)
Short Float %1.13%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend2.77
Dividend Growth(5Y)5.1%
DP75.86%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.96%
Min EPS beat(2)1.49%
Max EPS beat(2)2.43%
EPS beat(4)4
Avg EPS beat(4)1.68%
Min EPS beat(4)1.21%
Max EPS beat(4)2.43%
EPS beat(8)6
Avg EPS beat(8)1.26%
EPS beat(12)9
Avg EPS beat(12)1.96%
EPS beat(16)10
Avg EPS beat(16)1.24%
Revenue beat(2)2
Avg Revenue beat(2)0.49%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.91%
Revenue beat(4)3
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.91%
Revenue beat(8)7
Avg Revenue beat(8)0.29%
Revenue beat(12)10
Avg Revenue beat(12)0.59%
Revenue beat(16)11
Avg Revenue beat(16)-0.1%
PT rev (1m)2.58%
PT rev (3m)2.89%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)-0.97%
EPS NY rev (1m)0%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 17.17 | ||
| P/S | 3.89 | ||
| P/FCF | 25.95 | ||
| P/OCF | 18.99 | ||
| P/B | 2.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.24 |
EPS(TTM)5.63
EY5.35%
EPS(NY)6.14
Fwd EY5.83%
FCF(TTM)4.06
FCFY3.85%
OCF(TTM)5.55
OCFY5.27%
SpS27.1
BVpS37.93
TBVpS-3.06
PEG (NY)5.64
PEG (5Y)5.08
Graham Number69.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.79% | ||
| ROCE | 8.29% | ||
| ROIC | 6.63% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 26.33% | ||
| OM | 19.42% | ||
| PM (TTM) | 13.71% | ||
| GM | 65.57% | ||
| FCFM | 14.98% |
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-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 63.21% | ||
| Cap/Sales | 5.49% | ||
| Interest Coverage | 8.53 | ||
| Cash Conversion | 72.83% | ||
| Profit Quality | 109.28% | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 3.2 |
F-Score8
WACC6.72%
ROIC/WACC0.99
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)7.24%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%7.94%
EPS Next Y3.31%
EPS Next 2Y5.62%
EPS Next 3Y6.29%
EPS Next 5Y6.35%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%6.64%
Revenue Next Year7.02%
Revenue Next 2Y6.24%
Revenue Next 3Y6.21%
Revenue Next 5Y5.79%
EBIT growth 1Y7.35%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year19.44%
EBIT Next 3Y11.21%
EBIT Next 5Y9.23%
FCF growth 1Y28.67%
FCF growth 3Y-4.64%
FCF growth 5Y-2.95%
OCF growth 1Y27.68%
OCF growth 3Y-1.39%
OCF growth 5Y-0.53%
MEDTRONIC PLC / MDT FAQ
What is the ChartMill fundamental rating of MEDTRONIC PLC (MDT) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MDT.
Can you provide the valuation status for MEDTRONIC PLC?
ChartMill assigns a valuation rating of 6 / 10 to MEDTRONIC PLC (MDT). This can be considered as Fairly Valued.
How profitable is MEDTRONIC PLC (MDT) stock?
MEDTRONIC PLC (MDT) has a profitability rating of 8 / 10.
What are the PE and PB ratios of MEDTRONIC PLC (MDT) stock?
The Price/Earnings (PE) ratio for MEDTRONIC PLC (MDT) is 18.71 and the Price/Book (PB) ratio is 2.78.
Can you provide the financial health for MDT stock?
The financial health rating of MEDTRONIC PLC (MDT) is 5 / 10.