MEDTRONIC PLC (MDT)
IE00BTN1Y115 - Common Stock
MDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 192 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.
MDT had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 4.62%, MDT belongs to the top of the industry, outperforming 82.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.11%, MDT belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.37%, MDT belongs to the top of the industry, outperforming 82.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MDT is below the industry average of 8.50%.
The 3 year average ROIC (6.20%) for MDT is below the current ROIC(6.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 8.11% | ||
| ROIC | 6.37% |
ROA(3y)4.51%
ROA(5y)4.8%
ROE(3y)7.97%
ROE(5y)8.52%
ROIC(3y)6.2%
ROIC(5y)6.22%
1.3 Margins
The Profit Margin of MDT (13.00%) is better than 90.10% of its industry peers.
In the last couple of years the Profit Margin of MDT has grown nicely.
The Operating Margin of MDT (19.94%) is better than 93.75% of its industry peers.
In the last couple of years the Operating Margin of MDT has declined.
MDT has a better Gross Margin (65.73%) than 69.79% 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 | 19.94% | ||
| PM (TTM) | 13% | ||
| GM | 65.73% |
OM growth 3Y1.83%
OM growth 5Y-1.77%
PM growth 3Y-10.1%
PM growth 5Y3.04%
GM growth 3Y-0.97%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MDT is destroying value.
MDT has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MDT has been reduced compared to 5 years ago.
The debt/assets ratio for MDT is higher compared to a year ago.
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 65.10% of its industry peers.
MDT has a debt to FCF ratio of 5.11. This is a neutral value as MDT would need 5.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.11, MDT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
MDT has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MDT (0.49) is worse than 63.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.99
WACC6.42%
2.3 Liquidity
MDT has a Current Ratio of 2.30. This indicates that MDT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.30, MDT is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 1.71 indicates that MDT should not have too much problems paying its short term obligations.
MDT has a Quick ratio of 1.71. This is in the lower half of the industry: MDT underperforms 65.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.33% over the past year.
The Earnings Per Share has been growing slightly by 2.09% on average over the past years.
Looking at the last year, MDT shows a small growth in Revenue. The Revenue has grown by 5.03% in the last year.
MDT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.84% yearly.
EPS 1Y (TTM)1.33%
EPS 3Y4.91%
EPS 5Y2.09%
EPS growth Q2Q0%
Revenue 1Y (TTM)5.03%
Revenue growth 3Y2.6%
Revenue growth 5Y0.84%
Revenue growth Q2Q4.68%
3.2 Future
MDT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.45% yearly.
MDT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.60% yearly.
EPS Next Y-0.98%
EPS Next 2Y1.9%
EPS Next 3Y3.68%
EPS Next 5Y5.45%
Revenue Next Year4.18%
Revenue Next 2Y4.18%
Revenue Next 3Y4.45%
Revenue Next 5Y4.6%
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 15.23, which indicates a correct valuation of MDT.
Based on the Price/Earnings ratio, MDT is valued cheaper than 90.63% of the companies in the same industry.
MDT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.84.
A Price/Forward Earnings ratio of 14.73 indicates a correct valuation of MDT.
Based on the Price/Forward Earnings ratio, MDT is valued cheaper than 93.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.35. MDT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 14.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 90.10% of the companies listed in the same industry.
MDT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MDT is cheaper than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.82 | ||
| EV/EBITDA | 12.62 |
4.3 Compensation for Growth
The excellent profitability rating of MDT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.3
EPS Next 2Y1.9%
EPS Next 3Y3.68%
5. Dividend
5.1 Amount
MDT has a Yearly Dividend Yield of 3.48%.
Compared to an average industry Dividend Yield of 1.69, MDT pays a better dividend. On top of this MDT pays more dividend than 99.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, MDT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
On average, the dividend of MDT grows each year by 8.20%, which is quite nice.
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)8.2%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
87.07% of the earnings are spent on dividend by MDT. This is not a sustainable payout ratio.
MDT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP87.07%
EPS Next 2Y1.9%
EPS Next 3Y3.68%
MEDTRONIC PLC
NYSE:MDT (4/29/2024, 11:44:10 AM)
81.05
+1.31 (+1.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap107.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 14.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)7.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 8.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.94% | ||
| PM (TTM) | 13% | ||
| GM | 65.73% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.33%
EPS 3Y4.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.03%
Revenue growth 3Y2.6%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y