Mettler-Toledo (MTD) AI Stock Analysis

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Mettler-Toledo

(NYSE:MTD)

72Outperform

Mettler-Toledo scores well due to its strong financial performance and positive earnings outlook, supported by steady sales growth and robust margins. However, its technical indicators are weak, suggesting bearish market sentiment, and the stock appears overvalued based on its P/E ratio. The lack of dividend yield further contributes to a moderate overall score. Despite the positive earnings call, challenges in specific segments and geopolitical risks pose potential headwinds.

Positive Factors

Growth Expectations

MTD exited 2024 on a high note as momentum picked up in Lab and Product Inspection, which should add confidence to 2025 growth expectations.

Profitability

Adj. EPS in the third quarter was 2% above Street expectations, indicating better-than-expected profitability.

Negative Factors

Earnings Guidance

The 2025 EPS guidance is disappointing as it implies a lower growth compared to Street expectations.

Industrial Demand in China

Weakness in the Industrial sector in China, which has declined each quarter since 3Q23, affected overall performance.

Mettler-Toledo (MTD) vs. S&P 500 (SPY)

Market Cap

$21.31B

Dividend YieldN/A

Average Volume (3M)148.97K

Price to Earnings (P/E)25.2

Beta (1Y)1.15

Revenue Growth2.22%

EPS Growth12.78%

CountryUS

Employees16,000

SectorHealthcare

Sector Strength76

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)40.52

Shares Outstanding20,840,954

10 Day Avg. Volume161,652

30 Day Avg. Volume148,965

Financial Highlights & Ratios

PEG Ratio1.97

Price to Book (P/B)N/A

Price to Sales (P/S)6.48

Price to Cash Flow (P/CF)23.60

P/FCF Ratio26.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$1,425.57

Price Target Upside39.40% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

Mettler-Toledo Business Overview & Revenue Model

Company DescriptionMettler-Toledo (MTD) is a global manufacturer and distributor of precision instruments and services for a range of applications in laboratory, industrial, and food retailing sectors. The company offers a diverse portfolio of products, including weighing instruments, analytical instruments, and measurement solutions that are crucial for quality control, research and development, and production processes across various industries. Mettler-Toledo operates worldwide, serving customers in pharmaceuticals, chemicals, food and beverage production, and other industries where precision measurement is essential.

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 displays solid financial health with strong profitability and efficient cash flow management. While the company improved its equity position, high leverage remains a concern that needs to be monitored. The steady revenue growth and robust margins indicate a well-managed business in the Medical Diagnostics & Screening industry.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price1022.66

Price Trends

50DMA

1265.09

Negative

100DMA

1256.64

Negative

200DMA

1329.66

Negative

Market Momentum

MACD

-28.51

Positive

RSI

31.68

Neutral

STOCH

28.80

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 1022.66 is below the 20-day moving average (MA) of 1194.00, below the 50-day MA of 1265.09, and below the 200-day MA of 1329.66, indicating a bearish trend. The MACD of -28.51 indicates Positive momentum. The RSI at 31.68 is Neutral, neither overbought nor oversold. The STOCH value of 28.80 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 (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDXX	73 Outperform	$31.91B	36.91	57.66%	―	6.46%	5.82%
MTD	72 Outperform	$21.31B	25.24	-680.23%	―	2.22%	12.78%
WAT	72 Outperform	$19.30B	30.33	42.82%	―	0.07%	-1.20%
TMO	70 Outperform	$165.21B	26.48	13.15%	0.36%	0.05%	6.87%
A	68 Neutral	$31.27B	25.20	20.61%	0.93%	-3.00%	3.67%
DHR	65 Neutral	$130.05B	34.37	7.57%	0.62%	-13.50%	-17.25%
Sector *	48 Neutral	$6.36B	1.09	-49.92%	2.63%	17.17%	0.95%

* Healthcare Sector Average

Performance Comparison

MTD

Mettler-Toledo

1,022.66

-281.61

-21.59%

Agilent

103.00

-40.39

-28.17%

DHR

Danaher

181.77

-61.32

-25.23%

IDXX

Idexx Laboratories

393.73

-120.97

-23.50%

TMO

Thermo Fisher

437.91

-139.21

-24.12%

WAT

Waters

324.92

-14.12

-4.16%

Mettler-Toledo Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: -24.65% | 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.