MEDTRONIC PLC (MDT) Stock Fundamental Analysis
NYSE:MDT - New York Stock Exchange, Inc. - IE00BTN1Y115 - Common Stock - Currency: USD
MDT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 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 decent growth rate and is not valued too expensively. 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.
In the past year MDT had a positive cash flow from operations.
In the past 5 years MDT has always 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 (5.09%) than 84.49% of its industry peers.
Looking at the Return On Equity, with a value of 9.71%, MDT belongs to the top of the industry, outperforming 85.03% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.74%, MDT belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
MDT had an Average Return On Invested Capital over the past 3 years of 6.40%. This is in line with the industry average of 7.89%.
The last Return On Invested Capital (6.74%) for MDT is above the 3 year average (6.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 9.71% | ||
| ROIC | 6.74% |
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.4%
ROIC(5y)6.26%
1.3 Margins
The Profit Margin of MDT (13.90%) is better than 91.98% of its industry peers.
MDT's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.80%, MDT belongs to the best of the industry, outperforming 93.05% of the companies in the same industry.
MDT's Operating Margin has been stable in the last couple of years.
MDT's Gross Margin of 65.48% is fine compared to the rest of the industry. MDT outperforms 68.45% 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 | 19.8% | ||
| PM (TTM) | 13.9% | ||
| GM | 65.48% |
OM growth 3Y-2.78%
OM growth 5Y0.8%
PM growth 3Y-4.39%
PM growth 5Y-3.44%
GM growth 3Y-1.44%
GM growth 5Y-0.69%
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.
Compared to 1 year ago, MDT has less shares outstanding
Compared to 5 years ago, MDT has less shares outstanding
MDT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.79 indicates that MDT is not a great score, but indicates only limited risk for bankruptcy at the moment.
MDT has a Altman-Z score of 2.79. This is in the better half of the industry: MDT outperforms 67.38% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 5.50, MDT belongs to the best of the industry, outperforming 80.21% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that MDT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, MDT is doing worse than 64.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.03
WACC6.53%
2.3 Liquidity
MDT has a Current Ratio of 1.85. This is a normal value and indicates that MDT is financially healthy and should not expect problems in meeting its short term obligations.
MDT has a worse Current ratio (1.85) than 68.98% of its industry peers.
A Quick Ratio of 1.42 indicates that MDT should not have too much problems paying its short term obligations.
MDT has a Quick ratio of 1.42. This is in the lower half of the industry: MDT underperforms 62.03% 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 5.57% over the past year.
The Earnings Per Share has been growing slightly by 3.68% on average over the past years.
The Revenue has been growing slightly by 3.62% in the past year.
Measured over the past years, MDT shows a small growth in Revenue. The Revenue has been growing by 3.01% on average per year.
EPS 1Y (TTM)5.57%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%10.96%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%3.94%
3.2 Future
The Earnings Per Share is expected to grow by 6.26% on average over the next years.
Based on estimates for the next years, MDT will show a small growth in Revenue. The Revenue will grow by 5.13% on average per year.
EPS Next Y1.88%
EPS Next 2Y4.84%
EPS Next 3Y5.77%
EPS Next 5Y6.26%
Revenue Next Year5.38%
Revenue Next 2Y5.33%
Revenue Next 3Y5.13%
Revenue Next 5Y5.13%
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
The Price/Earnings ratio is 16.07, which indicates a correct valuation of MDT.
Based on the Price/Earnings ratio, MDT is valued cheaply inside the industry as 83.96% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.45, MDT is valued a bit cheaper.
MDT is valuated correctly with a Price/Forward Earnings ratio of 15.77.
MDT's Price/Forward Earnings ratio is rather cheap when compared to the industry. MDT is cheaper than 83.42% of the companies in the same industry.
MDT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
MDT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MDT is cheaper than 83.96% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 87.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.86 | ||
| EV/EBITDA | 13.28 |
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)8.56
PEG (5Y)4.36
EPS Next 2Y4.84%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.30%, MDT has a reasonable but not impressive dividend return.
MDT's Dividend Yield is rather good when compared to the industry average which is at 1.82. MDT pays more dividend than 98.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, MDT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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 76.97% 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.
DP76.97%
EPS Next 2Y4.84%
EPS Next 3Y5.77%
88.39
+0.11 (+0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners86.84%
Inst Owner Change1.23%
Ins Owners0.25%
Ins Owner Change2.29%
Market Cap113.36B
Analysts72.11
Price Target97.1 (9.85%)
Short Float %0.66%
Short Ratio1.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend2.77
Dividend Growth(5Y)5.1%
DP76.97%
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)-0.89%
PT rev (3m)-1%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-7.18%
EPS NY rev (1m)-4.83%
EPS NY rev (3m)-4.95%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 15.77 | ||
| P/S | 3.38 | ||
| P/FCF | 21.86 | ||
| P/OCF | 16.09 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.28 |
EPS(TTM)5.5
EY6.22%
EPS(NY)5.6
Fwd EY6.34%
FCF(TTM)4.04
FCFY4.57%
OCF(TTM)5.49
OCFY6.21%
SpS26.15
BVpS37.44
TBVpS-4.19
PEG (NY)8.56
PEG (5Y)4.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 9.71% | ||
| ROCE | 8.43% | ||
| ROIC | 6.74% | ||
| ROICexc | 7.61% | ||
| ROICexgc | 32.33% | ||
| OM | 19.8% | ||
| PM (TTM) | 13.9% | ||
| GM | 65.48% | ||
| FCFM | 15.46% |
ROA(3y)4.43%
ROA(5y)4.54%
ROE(3y)8.11%
ROE(5y)8.19%
ROIC(3y)6.4%
ROIC(5y)6.26%
ROICexc(3y)7.14%
ROICexc(5y)7.08%
ROICexgc(3y)30.08%
ROICexgc(5y)33.46%
ROCE(3y)8%
ROCE(5y)7.83%
ROICexcg growth 3Y-10.99%
ROICexcg growth 5Y-5.11%
ROICexc growth 3Y-1.79%
ROICexc growth 5Y3.7%
OM growth 3Y-2.78%
OM growth 5Y0.8%
PM growth 3Y-4.39%
PM growth 5Y-3.44%
GM growth 3Y-1.44%
GM growth 5Y-0.69%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 64.98% | ||
| Cap/Sales | 5.54% | ||
| Interest Coverage | 8.72 | ||
| Cash Conversion | 74.12% | ||
| Profit Quality | 111.2% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.79 |
F-Score6
WACC6.53%
ROIC/WACC1.03
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)5.57%
EPS 3Y-0.72%
EPS 5Y3.68%
EPS Q2Q%10.96%
EPS Next Y1.88%
EPS Next 2Y4.84%
EPS Next 3Y5.77%
EPS Next 5Y6.26%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y1.91%
Revenue growth 5Y3.01%
Sales Q2Q%3.94%
Revenue Next Year5.38%
Revenue Next 2Y5.33%
Revenue Next 3Y5.13%
Revenue Next 5Y5.13%
EBIT growth 1Y8.51%
EBIT growth 3Y-0.93%
EBIT growth 5Y3.84%
EBIT Next Year19.91%
EBIT Next 3Y10.12%
EBIT Next 5Y8.8%
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%