MEDTRONIC PLC (MDT) Stock Fundamental Analysis
NYSE:MDT - IE00BTN1Y115 - Common Stock
92.375 USD
-0.53 (-0.57%)
Overall MDT gets a fundamental rating of 6 out of 10. We evaluated MDT against 190 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. MDT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MDT was profitable.
In the past year MDT had a positive cash flow from operations.
In the past 5 years MDT has always been profitable.
MDT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MDT's Return On Assets of 5.09% is amongst the best of the industry. MDT outperforms 82.11% of its industry peers.
MDT's Return On Equity of 9.71% is amongst the best of the industry. MDT outperforms 84.21% of its industry peers.
The Return On Invested Capital of MDT (6.67%) is better than 82.11% 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 8.46%.
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
With an excellent Profit Margin value of 13.90%, MDT belongs to the best of the industry, outperforming 91.58% of the companies in the same industry.
MDT's Profit Margin has declined in the last couple of years.
MDT has a better Operating Margin (19.61%) than 92.63% of its industry peers.
MDT's Operating Margin has been stable in the last couple of years.
MDT has a Gross Margin of 65.39%. This is in the better half of the industry: MDT outperforms 70.53% of its industry peers.
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 | 19.61% | ||
| 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
MDT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MDT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MDT has less shares outstanding
MDT has a worse debt/assets ratio than last year.
2.2 Solvency
MDT has an Altman-Z score of 2.86. 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.
MDT's Altman-Z score of 2.86 is fine compared to the rest of the industry. MDT outperforms 68.95% of its industry peers.
MDT has a debt to FCF ratio of 5.50. This is a neutral value as MDT would need 5.50 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.50, MDT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that MDT is somewhat dependend on debt financing.
MDT's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. MDT is outperformed by 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.02
WACC6.53%
2.3 Liquidity
A Current Ratio of 1.85 indicates that MDT should not have too much problems paying its short term obligations.
MDT's Current ratio of 1.85 is on the low side compared to the rest of the industry. MDT is outperformed by 66.84% of its industry peers.
MDT has a Quick Ratio of 1.42. This is a normal value and indicates that MDT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MDT (1.42) is worse than 61.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.42 |
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%.
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 4.98% in the past 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 Y3.08%
EPS Next 2Y5.47%
EPS Next 3Y6.1%
EPS Next 5Y6.47%
Revenue Next Year6.63%
Revenue Next 2Y6.01%
Revenue Next 3Y5.69%
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
MDT is valuated correctly with a Price/Earnings ratio of 16.70.
Compared to the rest of the industry, the Price/Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 84.21% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, MDT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.10, the valuation of MDT can be described as correct.
84.74% of the companies in the same industry are more expensive than MDT, based on the Price/Forward Earnings ratio.
MDT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
81.05% of the companies in the same industry are more expensive than MDT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MDT is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.85 | ||
| EV/EBITDA | 13.99 |
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.
The excellent profitability rating of MDT may justify a higher PE ratio.
PEG (NY)5.42
PEG (5Y)4.53
EPS Next 2Y5.47%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
MDT has a Yearly Dividend Yield of 3.06%.
MDT's Dividend Yield is rather good when compared to the industry average which is at 1.74. MDT pays more dividend than 98.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, MDT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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 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 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 2Y5.47%
EPS Next 3Y6.1%
NYSE:MDT (9/8/2025, 11:03:04 AM)
92.375
-0.53 (-0.57%)
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 Change-0.34%
Ins Owners0.26%
Ins Owner Change5.53%
Market Cap118.49B
Analysts73.33
Price Target100.37 (8.65%)
Short Float %1.1%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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)2.04%
PT rev (3m)3.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)1.12%
EPS NY rev (3m)-3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 15.1 | ||
| P/S | 3.53 | ||
| P/FCF | 22.85 | ||
| P/OCF | 16.82 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.99 |
EPS(TTM)5.53
EY5.99%
EPS(NY)6.12
Fwd EY6.62%
FCF(TTM)4.04
FCFY4.38%
OCF(TTM)5.49
OCFY5.94%
SpS26.15
BVpS37.44
TBVpS-4.19
PEG (NY)5.42
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 | 2.86 |
F-Score6
WACC6.53%
ROIC/WACC1.02
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 Y3.08%
EPS Next 2Y5.47%
EPS Next 3Y6.1%
EPS Next 5Y6.47%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%6.68%
Revenue Next Year6.63%
Revenue Next 2Y6.01%
Revenue Next 3Y5.69%
Revenue Next 5Y5.37%
EBIT growth 1Y7.42%
EBIT growth 3Y-1.62%
EBIT growth 5Y3.4%
EBIT Next Year18.1%
EBIT Next 3Y10.79%
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%