MEDTRONIC PLC (MDT) Stock Fundamental Analysis
USA - NYSE:MDT - IE00BTN1Y115 - Common Stock
93.23 USD
-0.9 (-0.96%)
94.35 USD
+1.12 (+1.2%)
MDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. MDT scores excellent on profitability, but there are some minor concerns on its financial health. MDT has a correct valuation and a medium growth rate. MDT also has an excellent dividend rating. These ratings could make MDT a good candidate for dividend investing.
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.
Each year in the past 5 years MDT has been profitable.
Each year in the past 5 years MDT had a positive operating cash flow.
1.2 Ratios
MDT has a better Return On Assets (5.12%) than 82.54% of its industry peers.
Looking at the Return On Equity, with a value of 9.73%, MDT belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.74%, MDT belongs to the top of the industry, outperforming 82.01% of the companies in the same industry.
MDT had an Average Return On Invested Capital over the past 3 years of 6.35%. This is below the industry average of 9.01%.
The 3 year average ROIC (6.35%) for MDT 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
MDT has a Profit Margin of 13.63%. This is amongst the best in the industry. MDT outperforms 92.06% of its industry peers.
In the last couple of years the Profit Margin of MDT has declined.
MDT has a better Operating Margin (19.57%) than 92.59% of its industry peers.
In the last couple of years the Operating Margin of MDT has remained more or less at the same level.
The Gross Margin of MDT (65.38%) is better than 70.37% of its industry peers.
MDT's Gross Margin has been stable in the last couple of years.
| 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 MDT is destroying value.
The number of shares outstanding for MDT has been reduced compared to 1 year ago.
The number of shares outstanding for MDT has been reduced compared to 5 years ago.
MDT has a worse debt/assets ratio than last year.
2.2 Solvency
MDT has an Altman-Z score of 2.94. This is not the best score and indicates that MDT is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.94, MDT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
MDT has a debt to FCF ratio of 5.39. This is a neutral value as MDT would need 5.39 years to pay back of all of its debts.
MDT's Debt to FCF ratio of 5.39 is fine compared to the rest of the industry. MDT outperforms 79.37% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that MDT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, MDT is doing worse than 61.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.39 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.99
WACC6.8%
2.3 Liquidity
A Current Ratio of 2.01 indicates that MDT has no problem at all paying its short term obligations.
MDT's Current ratio of 2.01 is on the low side compared to the rest of the industry. MDT is outperformed by 64.02% of its industry peers.
MDT has a Quick Ratio of 1.50. This is a normal value and indicates that MDT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.50, MDT perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
MDT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.53%.
The Earnings Per Share has been growing slightly by 3.68% on average over the past years.
Looking at the last year, MDT shows a small growth in Revenue. The Revenue has grown by 4.98% in the last year.
MDT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.01% yearly.
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
Based on estimates for the next years, MDT will show a small growth in Earnings Per Share. The EPS will grow by 6.47% on average per year.
MDT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.37% yearly.
EPS Next Y3.31%
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.
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 16.86, which indicates a correct valuation of MDT.
Based on the Price/Earnings ratio, MDT is valued cheaply inside the industry as 83.60% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.83, MDT is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.19 indicates a correct valuation of MDT.
Based on the Price/Forward Earnings ratio, MDT is valued cheaply inside the industry as 86.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, MDT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDT is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
MDT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MDT is cheaper than 84.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.55 | ||
| EV/EBITDA | 13.94 |
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 excellent profitability rating of MDT may justify a higher PE ratio.
PEG (NY)5.09
PEG (5Y)4.58
EPS Next 2Y5.62%
EPS Next 3Y6.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.01%, MDT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.79, MDT pays a better dividend. On top of this MDT pays more dividend than 98.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, MDT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.1%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
MDT pays out 77.27% 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.
DP77.27%
EPS Next 2Y5.62%
EPS Next 3Y6.2%
93.23
-0.9 (-0.96%)
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-0.1%
Ins Owners0.29%
Ins Owner Change5.53%
Market Cap119.59B
Revenue(TTM)34.20B
Net Income(TTM)4.66B
Analysts73.33
Price Target100.56 (7.86%)
Short Float %1.17%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend2.77
Dividend Growth(5Y)5.1%
DP77.27%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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%
PT rev (3m)2.23%
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 | 16.86 | ||
| Fwd PE | 15.19 | ||
| P/S | 3.5 | ||
| P/FCF | 22.55 | ||
| P/OCF | 16.73 | ||
| P/B | 2.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.94 |
EPS(TTM)5.53
EY5.93%
EPS(NY)6.14
Fwd EY6.58%
FCF(TTM)4.13
FCFY4.43%
OCF(TTM)5.57
OCFY5.98%
SpS26.66
BVpS37.34
TBVpS-4.16
PEG (NY)5.09
PEG (5Y)4.58
Graham Number68.16
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 | 2.94 |
F-Score7
WACC6.8%
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)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 / 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 16.86 and the Price/Book (PB) ratio is 2.5.
Can you provide the financial health for MDT stock?
The financial health rating of MEDTRONIC PLC (MDT) is 5 / 10.