NYSE:MTD

Stock Analysis Report

Executive Summary

Mettler-Toledo International Inc. manufactures and supplies precision instruments and services worldwide.

Rewards

PE ratio (37.4x) is below the Life Sciences industry average (37.5x)

Earnings are forecast to grow 6.57% per year

Earnings have grown 9.8% per year over the past 5 years

Risk Analysis

Has a high level of debt



Snowflake Analysis

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Mettler-Toledo International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

MTD

2.0%

US Life Sciences

2.0%

US Market


1 Year Return

38.1%

MTD

29.0%

US Life Sciences

23.5%

US Market

Return vs Industry: MTD exceeded the US Life Sciences industry which returned 29.7% over the past year.

Return vs Market: MTD exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

MTDIndustryMarket
7 Day1.7%2.0%2.0%
30 Day7.2%5.6%4.3%
90 Day22.2%17.9%12.2%
1 Year38.1%38.1%29.3%29.0%26.1%23.5%
3 Year100.3%100.3%111.6%109.9%53.1%43.2%
5 Year174.3%174.3%141.3%138.0%75.5%56.1%

Price Volatility Vs. Market

How volatile is Mettler-Toledo International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mettler-Toledo International undervalued compared to its fair value and its price relative to the market?

37.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MTD ($830.63) is trading above our estimate of fair value ($461.96)

Significantly Below Fair Value: MTD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MTD is good value based on its PE Ratio (37.4x) compared to the Life Sciences industry average (37.5x).

PE vs Market: MTD is poor value based on its PE Ratio (37.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MTD is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: MTD is overvalued based on its PB Ratio (46.2x) compared to the US Life Sciences industry average (5.3x).


Next Steps

Future Growth

How is Mettler-Toledo International forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTD's forecast earnings growth (6.6% per year) is above the savings rate (1.7%).

Earnings vs Market: MTD's earnings (6.6% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: MTD's earnings are forecast to grow, but not significantly.

Revenue vs Market: MTD's revenue (4.3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: MTD's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTD's Return on Equity is forecast to be very high in 3 years time (260.2%).


Next Steps

Past Performance

How has Mettler-Toledo International performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTD has high quality earnings.

Growing Profit Margin: MTD's current net profit margins (18.4%) are higher than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: MTD's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: MTD's earnings growth over the past year (34.6%) exceeds its 5-year average (9.8% per year).

Earnings vs Industry: MTD earnings growth over the past year (34.6%) underperformed the Life Sciences industry 34.6%.


Return on Equity

High ROE: Whilst MTD's Return on Equity (125.38%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mettler-Toledo International's financial position?


Financial Position Analysis

Short Term Liabilities: MTD's short term assets ($963.8M) exceed its short term liabilities ($719.3M).

Long Term Liabilities: MTD's short term assets ($963.8M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: MTD's debt to equity ratio (268.1%) is considered high.

Reducing Debt: MTD's debt to equity ratio has increased from 57.6% to 268.1% over the past 5 years.

Debt Coverage: MTD's debt is well covered by operating cash flow (51.1%).

Interest Coverage: MTD's interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet

Inventory Level: MTD has a high level of physical assets or inventory.

Debt Coverage by Assets: MTD's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Mettler-Toledo International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MTD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MTD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MTD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Mettler-Toledo International's salary, the management and board of directors tenure and is there insider trading?

7.5yrs

Average management tenure


CEO

Olivier A. Filliol (52yo)

12yrs

Tenure

US$7,069,870

Compensation

Mr. Olivier A. Filliol serves as Chief Executive Officer and President of Mettler-Toledo S.A.E. Mr. Filliol has been Chief Executive Officer and President of Mettler-Toledo Inc. (Canada) since January 2008 ...


CEO Compensation Analysis

Compensation vs Market: Olivier's total compensation ($USD7.07M) is below average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Olivier's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.5yrs

Average Tenure

51yo

Average Age

Experienced Management: MTD's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

11.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: MTD's board of directors are seasoned and experienced ( 11 years average tenure).


Insider Trading

Insider Buying: MTD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$91,66806 Dec 19
Simon Kirk
EntityIndividual
Shares125
Max PriceUS$733.34
SellUS$130,39414 Nov 19
Gerhard Keller
EntityIndividual
Role
Senior Key Executive
Head of Process Analytics Division
Shares185
Max PriceUS$704.83
SellUS$68,31914 Nov 19
Shawn Vadala
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares96
Max PriceUS$711.66
SellUS$6,009,18607 Jun 19
Thomas Salice
EntityIndividual
Role
Lead Director
Presiding Director
Shares8,000
Max PriceUS$754.34
SellUS$18,412,52026 Feb 19
Robert Spoerry
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares27,112
Max PriceUS$685.01
SellUS$23,537,56722 Feb 19
Robert Spoerry
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares35,000
Max PriceUS$674.70
SellUS$16,766,07920 Feb 19
Robert Spoerry
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares25,000
Max PriceUS$672.44
SellUS$11,188,80815 Feb 19
Robert Spoerry
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares16,713
Max PriceUS$673.18
SellUS$14,085,69413 Feb 19
Robert Spoerry
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares21,175
Max PriceUS$667.69
SellUS$166,12513 Feb 19
Gerhard Keller
EntityIndividual
Role
Senior Key Executive
Head of Process Analytics Division
Shares250
Max PriceUS$664.50

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Olivier A. Filliol (52yo)

    President

    • Tenure: 12yrs
    • Compensation: US$7.07m
  • Proia Roe (48yo)

    General Counsel & Secretary

    • Mary Finnegan

      Head of Investor Relations & Treasurer

      • Marc de La Guéronnière (55yo)

        Head of European & North American Market Organizations

        • Tenure: 5.8yrs
        • Compensation: US$1.53m
      • Christian Magloth (53yo)

        Head of Human Resources

        • Tenure: 9.1yrs
      • Richard Wong

        Head of Asia/Pacific Market Organizations

        • Tenure: 11yrs
      • Shawn Vadala (50yo)

        Chief Financial Officer

        • Tenure: 6yrs
        • Compensation: US$1.74m
      • Oliver Wittorf

        Head of Supply Chain & IT

        • Tenure: 3yrs
      • Peter Aggersbjerg (51yo)

        Head of Divisions & Operations

        • Compensation: US$1.24m
      • Gerry Keller (51yo)

        Head of Process Analytics Division


        Board Members

        • Robert Spoerry (64yo)

          Independent Chairman

          • Tenure: 21.7yrs
          • Compensation: US$868.95k
        • Elisha Finney (58yo)

          Independent Director

          • Tenure: 2.2yrs
          • Compensation: US$228.87k
        • Tom Salice (59yo)

          Presiding Director

          • Compensation: US$287.71k
        • Olivier A. Filliol (52yo)

          President

          • Tenure: 12yrs
          • Compensation: US$7.07m
        • Marco Gadola (56yo)

          Director

          • Tenure: 0.7yrs
        • Mike Kelly (62yo)

          Independent Director

          • Tenure: 11.5yrs
          • Compensation: US$232.70k
        • Wah-Hui Chu (67yo)

          Independent Director

          • Tenure: 13yrs
          • Compensation: US$216.45k
        • Richard Francis (51yo)

          Independent Director

          • Tenure: 3.7yrs
          • Compensation: US$219.08k

        Company Information

        Mettler-Toledo International Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Mettler-Toledo International Inc.
        • Ticker: MTD
        • Exchange: NYSE
        • Founded: 1991
        • Industry: Life Sciences Tools and Services
        • Sector: Pharmaceuticals & Biotech
        • Market Cap: US$20.230b
        • Shares outstanding: 24.35m
        • Website: https://www.mt.com

        Number of Employees


        Location

        • Mettler-Toledo International Inc.
        • 1900 Polaris Parkway
        • Columbus
        • Ohio
        • 43240
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        MTDNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1997
        MTODB (Deutsche Boerse AG)YesCommon StockDEEURNov 1997
        0K10LSE (London Stock Exchange)YesCommon StockGBUSDNov 1997
        MTD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1997

        Biography

        Mettler-Toledo International Inc. manufactures and supplies precision instruments and services worldwide. The company operates in five segments: U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations, and Other. It offers weighing instruments for laboratory, industrial, packaging, logistics, and food retailing applications; various related analytical instruments and provides automated chemistry solutions used in drug and chemical compound discovery and development; metal detection and other end-of-line product inspection systems used in production and packaging for food processing and packaging, pharmaceutical, packaged consumer goods, and other industries; and solutions that are used in various process analytics applications. Its laboratory instruments include laboratory balances, liquid pipetting solutions, automated laboratory reactors, titrators, pH meters and sensors, physical value analyzers, thermal analysis systems, and other analytical instruments; and LabX, a PC-based laboratory embedded software platform. The company’s industrial instruments comprise industrial weighing instruments and related terminals, automatic dimensional measurement and data capture solutions, vehicle scale systems, industrial software, and product inspection systems. Its retail weighing solutions consist of networked scales and software, and stand-alone scales for handling fresh goods, such as meats, vegetables, fruits, and cheeses. The company serves the life science industry, and independent research organizations; food and beverage producers; food retailers; chemical, specialty chemical, and cosmetics companies; food retailers; transportation and logistics, metals, and electronics industries; and the academic community. The company markets its products through its direct sales force and indirect distribution channels. Mettler-Toledo International Inc. was incorporated in 1991 and is headquartered in Columbus, Ohio. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/17 23:36
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.