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Mettler-Toledo International (MTD)
NYSE:MTD
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Mettler-Toledo
(NYSE:MTD)68Neutral
Positive Factors
Earnings Performance
Core growth of +12% for 4Q24 handily beat expectations, driven by improved momentum in Lab and Product Inspection.
Financial Metrics
Adj. EPS in the third quarter was 2% above Street expectations, indicating better-than-expected profitability.
Negative Factors
Valuation Concerns
The analyst's underperform rating is based on valuation concerns, with shares trading at a significant premium to the S&P.
Mettler-Toledo (MTD) vs. S&P 500 (SPY)
Market Cap
$26.62B
Dividend YieldN/A
Average Volume (3M)143.42K
Price to Earnings (P/E)31.3
Beta (1Y)1.15
Revenue Growth2.22%
EPS Growth12.78%
CountryUS
Employees17,300
SectorHealthcare
Sector Strength74
IndustryMedical Diagnostics & Screening
Share Statistics
EPS (TTM)40.52
Shares Outstanding20,916,458
10 Day Avg. Volume138,709
30 Day Avg. Volume143,422
Financial Highlights & Ratios
PEG Ratio2.45
Price to Book (P/B)N/A
Price to Sales (P/S)6.87
Price to Cash Flow (P/CF)25.00
P/FCF Ratio27.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1,408.17Price Target Upside13.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Mettler-Toledo Business Overview & Revenue Model
Company DescriptionMettler-Toledo International Inc. is a manufacturer and supplier of precision instruments. The company is the world’s largest manufacturer of weighing instruments for use in laboratory, industrial, logistics, packaging and food retailing applications. It also offers analytical instruments for use in life science and real-time analytic systems used in drug and chemical compound development and production processes.
How the Company Makes MoneyMettler-Toledo makes money primarily through the sale of precision instruments and related services. The company's revenue streams include the sale of laboratory instruments such as balances and scales, industrial instruments for process analytics and inline measurement, and food retail solutions like checkout scales and packaging equipment. Additionally, Mettler-Toledo generates revenue from after-sales services, which include installation, calibration, and maintenance of its instruments. The company benefits from long-term service contracts and recurring maintenance agreements, which provide a steady income stream. Mettler-Toledo's ability to innovate and customize solutions for specific customer needs also plays a significant role in its financial success. Strategic partnerships and a strong global distribution network further enhance the company's market reach and revenue generation capabilities.
Mettler-Toledo Financial Statement Overview
Summary
Mettler-Toledo shows robust financial health with strong profitability and efficient cash flow management. The income statement reveals a strong profit margin and modest revenue growth. However, the balance sheet highlights concerns with high leverage despite improvements in equity.Income Statement
Mettler-Toledo's income statement shows strong profitability with a consistent gross profit margin above 50% and an improving net profit margin reaching 22.3% in the TTM (Trailing-Twelve-Months). Revenue growth was modest at 2.2% from 2023 to 2024, suggesting stable demand. EBIT and EBITDA margins are robust, indicating efficient cost management and operational efficiency.88
Very Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio due to negative shareholder equity in 2023, which improved to a positive equity position in 2024. The equity ratio shows improvement to 100% in the TTM, indicating better financial stability. However, the company still carries significant debt levels that may pose risks if not managed carefully.72
Positive
Cash Flow
Mettler-Toledo demonstrates strong cash flow generation with positive free cash flow growth of 0.5% from 2023 to 2024. The operating cash flow to net income ratio is favorable, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio supports this trend, signifying healthy cash flow management.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.87B | 3.79B | 3.92B | 3.72B | 3.09B | Gross Profit |
| 2.33B | 2.24B | 2.31B | 2.17B | 1.80B | EBIT |
| 1.20B | 1.15B | 1.14B | 997.84M | 797.88M | EBITDA |
| 1.24B | 1.17B | 1.24B | 1.10B | 885.96M | Net Income Common Stockholders |
| 863.14M | 788.78M | 872.50M | 768.99M | 602.74M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 59.36M | 69.81M | 95.97M | 98.56M | 94.25M | Total Assets |
| 3.24B | 3.36B | 3.49B | 3.33B | 2.81B | Total Debt |
| 2.01B | 2.08B | 2.01B | 1.68B | 1.33B | Net Debt |
| 1.95B | 2.01B | 1.92B | 1.58B | 1.24B | Total Liabilities |
| 3.37B | 3.51B | 3.47B | 3.16B | 2.53B | Stockholders Equity |
| -126.89M | -149.94M | 24.79M | 171.42M | 282.68M |
| Cash Flow | Free Cash Flow | |||
| 864.45M | 860.55M | 737.83M | 801.25M | 632.21M | Operating Cash Flow |
| 968.35M | 965.87M | 859.07M | 908.83M | 724.70M | Investing Cash Flow |
| -119.46M | -131.69M | -139.40M | -314.11M | -100.36M | Financing Cash Flow |
| -855.98M | -859.59M | -716.04M | -590.55M | -743.91M |
Mettler-Toledo Technical Analysis
Negative
1240.97
Price Trends
1288.54
Negative
1295.22
Negative
1359.19
Negative
Market Momentum
-12.56
Positive
37.86
Neutral
34.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTD, the sentiment is Negative. The current price of 1240.97 is below the 20-day moving average (MA) of 1305.72, below the 50-day MA of 1288.54, and below the 200-day MA of 1359.19, indicating a bearish trend. The MACD of -12.56 indicates Positive momentum. The RSI at 37.86 is Neutral, neither overbought nor oversold. The STOCH value of 34.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTD.
Mettler-Toledo Risk Analysis
Mettler-Toledo disclosed 31 risk factors in its most recent earnings report. Mettler-Toledo reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mettler-Toledo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $194.88B | 31.23 | 12.78% | 0.30% | 0.05% | 6.87% | |
68 Neutral | $26.62B | 31.31 | -680.23% | ― | 2.22% | 12.78% | |
68 Neutral | $35.08B | 28.28 | 20.89% | 0.76% | -3.00% | 3.67% | |
65 Neutral | $147.01B | 38.89 | 7.87% | 0.53% | -13.50% | -17.25% | |
63 Neutral | $21.87B | 34.35 | 34.88% | ― | 0.07% | -1.20% | |
58 Neutral | $7.16B | 62.42 | 6.35% | 0.43% | 13.56% | -73.92% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
MTD
Mettler-Toledo
1,240.97
-70.68
-5.39%
A
Agilent
123.06
-22.15
-15.25%
BRKR
Bruker
46.42
-43.90
-48.60%
DHR
Danaher
205.91
-45.90
-18.23%
TMO
Thermo Fisher
516.57
-73.32
-12.43%
WAT
Waters
368.05
19.05
5.46%
Mettler-Toledo Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -8.57% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong overall performance with significant sales growth, particularly in Europe and the Laboratory segment. However, challenges were noted in the Chinese market and the Food Retail and Core Industrial segments. The company's cautious outlook reflects ongoing geopolitical uncertainties and potential tariff impacts.Highlights
Strong Sales Growth
Sales in the fourth quarter were $1.045 billion, an increase of 12% in both local currency and US dollars.
Regional Performance Highlights
Local currency sales grew 19% in Europe and 14% in Asia/Rest of World for the quarter. Full-year growth in Europe was 8%.
Laboratory Segment Success
For the quarter, Laboratory sales increased 18%, driven by strong demand in Europe and among pharma and biopharma customers.
Gross Margin Improvement
Gross margin increased to 61.2% in the quarter, a rise of 220 basis points, driven by higher volume, positive price realization, and productivity initiatives.
Adjusted EPS Growth
Adjusted EPS for the quarter was $12.41, marking a 32% increase over the prior year.
Positive Outlook for 2025
Full-year adjusted EPS for 2025 is expected to grow 3% to 5%, or 9% to 10% excluding the impact of shipping delays and unfavorable currency.
Lowlights
China Sales Decline
Local currency sales decreased 11% in China for the full year, with a 12% decline excluding the impact of shipping delays.
Food Retail Segment Challenges
Food Retail sales declined 14% in the quarter and 14% for the full year. Excluding shipping delays, quarterly decline was 21%.
Core Industrial Segment Weakness
Core Industrial sales were down 1% for the full year, with specific challenges in China and a subdued market.
Geopolitical and Tariff Concerns
Uncertainty remains high due to geopolitical tensions and potential new tariffs, impacting the company's outlook.
Company Guidance
During the Mettler-Toledo earnings call for the fourth quarter of 2024, the company provided detailed guidance for the upcoming year. They anticipate a 3% growth in local currency sales for the full year 2025, which could reach 4.5% if adjusted for prior shipping delays. Operating margins are expected to remain relatively flat, with potential growth of 60 basis points when excluding the delays. The company forecasts adjusted EPS to be between $42.35 and $43.00, reflecting a growth of 3% to 5%, or 9% to 10% excluding shipping delays and unfavorable currency impacts. Free cash flow is projected to be approximately $860 million, with planned share repurchases around $875 million. The guidance took into account uncertainties in the global economy, potential geopolitical tensions, and currency headwinds, while assuming a gradual improvement in market conditions throughout the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.