MEDTRONIC PLC (MDT)
IE00BTN1Y115 - Common Stock
Overall MDT gets a fundamental rating of 6 out of 10. We evaluated MDT against 196 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.
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.
Each year in the past 5 years MDT has been profitable.
In the past 5 years MDT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MDT (4.62%) is better than 82.14% of its industry peers.
Looking at the Return On Equity, with a value of 8.11%, MDT belongs to the top of the industry, outperforming 83.16% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.37%, MDT belongs to the best of the industry, outperforming 82.65% 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 last Return On Invested Capital (6.37%) for MDT is above the 3 year average (6.20%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 13.00%, MDT belongs to the top of the industry, outperforming 90.31% of the companies in the same industry.
In the last couple of years the Profit Margin of MDT has grown nicely.
MDT has a better Operating Margin (19.94%) than 93.88% of its industry peers.
MDT's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 65.73%, MDT is doing good in the industry, outperforming 70.41% of the companies in the same industry.
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
MDT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MDT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MDT has less shares outstanding
Compared to 1 year ago, MDT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.87 indicates that MDT is not a great score, but indicates only limited risk for bankruptcy at the moment.
MDT has a better Altman-Z score (2.87) than 65.31% of its industry peers.
The Debt to FCF ratio of MDT is 5.11, which is a neutral value as it means it would take MDT, 5.11 years of fcf income to pay off all of its debts.
MDT has a Debt to FCF ratio of 5.11. This is amongst the best in the industry. MDT outperforms 81.63% of its industry peers.
MDT has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
MDT's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. MDT is outperformed by 63.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.99
WACC6.47%
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.
MDT's Current ratio of 2.30 is on the low side compared to the rest of the industry. MDT is outperformed by 65.82% of its industry peers.
MDT has a Quick Ratio of 1.71. This is a normal value and indicates that MDT is financially healthy and should not expect problems in meeting its short term obligations.
MDT's Quick ratio of 1.71 is on the low side compared to the rest of the industry. MDT is outperformed by 64.29% 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.
Measured over the past 5 years, MDT shows a small growth in Earnings Per Share. The EPS has been growing by 2.09% on average per year.
The Revenue has been growing slightly by 5.03% in the past year.
Measured over the past years, MDT shows a small growth in Revenue. The Revenue has been growing by 0.84% on average per year.
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
The Earnings Per Share is expected to grow by 5.45% 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 4.60% on average per year.
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
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.
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
With a Price/Earnings ratio of 15.08, MDT is valued correctly.
Based on the Price/Earnings ratio, MDT is valued cheaper than 90.82% 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 25.05.
With a Price/Forward Earnings ratio of 14.58, MDT is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDT indicates a rather cheap valuation: MDT is cheaper than 92.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.53. MDT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 14.58 |
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 91.33% of the companies listed 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 90.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.6 | ||
| EV/EBITDA | 12.68 |
4.3 Compensation for Growth
The excellent profitability rating of MDT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.23
EPS Next 2Y1.9%
EPS Next 3Y3.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.36%, 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 2.96. MDT pays more dividend than 98.98% of the companies in the same industry.
MDT's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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 (4/15/2024, 7:18:12 PM)
After market: 80.38 +0.15 (+0.19%)80.23
+0.1 (+0.12%)
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 Cap106.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 15.08 | ||
| Fwd PE | 14.58 | ||
| 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)7.23
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