Medline Inc. Fundamental Analysis (NASDAQ: MDLN)
Medline Inc. Fundamental Analysis (NASDAQ: MDLN)
Medline Inc. (NASDAQ: MDLN) shows weak financial fundamentals with a PE ratio of 39.50, profit margin of 2.31%, and ROE of 5.45%. The company generates $29.5B in annual revenue with strong year-over-year growth of 11.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MDLN's fundamental strength across five key dimensions:
Efficiency Score
WeakMDLN struggles to generate sufficient returns from assets.
Valuation Score
ModerateMDLN shows balanced valuation metrics.
Growth Score
ModerateMDLN shows steady but slowing expansion.
Financial Health Score
ModerateMDLN shows balanced financial health with some risks.
Profitability Score
WeakMDLN struggles to sustain strong margins.
Key Financial Metrics
Is MDLN Expensive or Cheap?
P/E Ratio
MDLN trades at 39.50 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MDLN's PEG of -1.31 indicates potential undervaluation.
Price to Book
The market values Medline Inc. at 2.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.23 times EBITDA. This is generally considered low.
How Well Does MDLN Make Money?
Net Profit Margin
For every $100 in sales, Medline Inc. keeps $2.31 as profit after all expenses.
Operating Margin
Core operations generate 6.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.45 in profit for every $100 of shareholder equity.
ROA
Medline Inc. generates $1.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Medline Inc. generates limited operating cash flow of $1.97B, signaling weaker underlying cash strength.
Free Cash Flow
Medline Inc. produces free cash flow of $2.00B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.36 in free cash annually.
FCF Yield
MDLN converts 7.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How MDLN Stacks Against Its Sector Peers
| Metric | MDLN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.50 | 31.70 | Worse (Expensive) |
| ROE | 5.45% | 448.00% | Weak |
| Net Margin | 2.31% | 22837.00% | Weak |
| Debt/Equity | 1.09 | 0.54 | Weak (High Leverage) |
| Current Ratio | 4.33 | 5.63 | Strong Liquidity |
| ROA | 1.76% | -49.00% (disorted) | Weak |
MDLN outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Medline Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.50%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
4593.94%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
804.04%
Industry Style: Defensive, Growth, Innovation
High Growth