MEDTRONIC PLC (MDT) Stock Fundamental Analysis
USA - NYSE:MDT - IE00BTN1Y115 - Common Stock
94.22 USD
-0.08 (-0.08%)
94.45 USD
+0.23 (+0.24%)
MDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 191 industry peers in the Health Care Equipment & Supplies industry. While MDT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MDT is not valued too expensively and it also shows a decent growth rate. MDT also has an excellent dividend rating. These ratings would make MDT suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year MDT was profitable.
MDT had a positive operating cash flow in the past year.
MDT had positive earnings in each of the past 5 years.
In the past 5 years MDT always reported a positive cash flow from operatings.
1.2 Ratios
MDT's Return On Assets of 5.09% is amongst the best of the industry. MDT outperforms 82.20% of its industry peers.
MDT has a better Return On Equity (9.71%) than 84.29% of its industry peers.
The Return On Invested Capital of MDT (6.67%) is better than 81.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MDT is below the industry average of 8.97%.
The 3 year average ROIC (6.35%) for MDT 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
MDT has a Profit Margin of 13.90%. This is amongst the best in the industry. MDT outperforms 92.15% of its industry peers.
MDT's Profit Margin has declined in the last couple of years.
MDT has a better Operating Margin (19.61%) than 92.67% of its industry peers.
MDT's Operating Margin has been stable in the last couple of years.
MDT has a better Gross Margin (65.39%) than 70.68% of its industry peers.
MDT's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MDT is creating some value.
MDT has less shares outstanding than it did 1 year ago.
MDT has less shares outstanding than it did 5 years ago.
MDT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.89 indicates that MDT is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.89, MDT is in the better half of the industry, outperforming 68.06% of the companies in the same industry.
The Debt to FCF ratio of MDT is 5.50, which is a neutral value as it means it would take MDT, 5.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MDT (5.50) is better than 80.10% of its industry peers.
MDT has a Debt/Equity ratio of 0.53. This is a neutral value indicating MDT is somewhat dependend on debt financing.
MDT has a worse Debt to Equity ratio (0.53) than 62.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.01
WACC6.62%
2.3 Liquidity
A Current Ratio of 1.85 indicates that MDT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.85, MDT is doing worse than 66.49% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that MDT should not have too much problems paying its short term obligations.
MDT's Quick ratio of 1.42 is on the low side compared to the rest of the industry. MDT is outperformed by 60.73% of its industry peers.
| 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 5.53% over the past year.
Measured over the past 5 years, MDT shows a small growth in Earnings Per Share. The EPS has been growing by 3.68% on average per year.
MDT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.98%.
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
MDT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.47% yearly.
MDT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.37% yearly.
EPS Next Y3.35%
EPS Next 2Y5.65%
EPS Next 3Y6.23%
EPS Next 5Y6.47%
Revenue Next Year7.02%
Revenue Next 2Y6.24%
Revenue Next 3Y5.81%
Revenue Next 5Y5.37%
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
The Price/Earnings ratio is 17.04, which indicates a rather expensive current valuation of MDT.
Compared to the rest of the industry, the Price/Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 81.68% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. MDT is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.35, which indicates a correct valuation of MDT.
MDT's Price/Forward Earnings ratio is rather cheap when compared to the industry. MDT is cheaper than 82.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, MDT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
80.63% of the companies in the same industry are more expensive than MDT, based on the Enterprise Value to EBITDA ratio.
MDT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MDT is cheaper than 84.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.31 | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MDT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.09
PEG (5Y)4.63
EPS Next 2Y5.65%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
MDT has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.79, MDT pays a better dividend. On top of this MDT pays more dividend than 97.91% of the companies listed in the same industry.
MDT's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of MDT has a limited annual growth rate of 5.10%.
MDT has been paying a dividend for at least 10 years, so it has 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 76.98% of its income as dividend. This is not a sustainable payout ratio.
MDT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP76.98%
EPS Next 2Y5.65%
EPS Next 3Y6.23%
94.22
-0.08 (-0.08%)
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 Change-0.35%
Ins Owners0.29%
Ins Owner Change5.53%
Market Cap120.86B
Analysts73.33
Price Target100.56 (6.73%)
Short Float %1.03%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend2.77
Dividend Growth(5Y)5.1%
DP76.98%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)0.3%
PT rev (3m)3.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)0.25%
EPS NY rev (3m)1.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 15.35 | ||
| P/S | 3.6 | ||
| P/FCF | 23.31 | ||
| P/OCF | 17.16 | ||
| P/B | 2.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.16 |
EPS(TTM)5.53
EY5.87%
EPS(NY)6.14
Fwd EY6.52%
FCF(TTM)4.04
FCFY4.29%
OCF(TTM)5.49
OCFY5.83%
SpS26.15
BVpS37.44
TBVpS-4.19
PEG (NY)5.09
PEG (5Y)4.63
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 | 2.89 |
F-Score6
WACC6.62%
ROIC/WACC1.01
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 Y3.35%
EPS Next 2Y5.65%
EPS Next 3Y6.23%
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 3Y5.81%
Revenue Next 5Y5.37%
EBIT growth 1Y7.42%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year19.44%
EBIT Next 3Y10.51%
EBIT Next 5Y9.23%
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%