Mettler-Toledo (MTD) AI Stock Analysis

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Mettler-Toledo

(NYSE:MTD)

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Neutral 66 (OpenAI - 5.2)

Rating:66Neutral

Price Target:

$1,483.00

▲(7.65% Upside)

Action:ReiteratedDate:02/07/26

The score is primarily supported by strong profitability and free-cash-flow generation plus constructive FY2026 guidance and buybacks. Offsetting this are meaningful balance-sheet risk from high leverage/negative equity, weak current technical momentum, and a premium valuation (P/E ~32.6) that raises execution expectations.

Positive Factors

Strong Industrial Growth

The strong growth in the Industrial segment indicates robust demand and effective market penetration, which can drive sustained revenue and profitability.

Cash Flow Management

Effective cash flow management ensures liquidity and financial flexibility, enabling the company to invest in growth opportunities and manage debt.

Successful Acquisitions

Strategic acquisitions enhance product offerings and market reach, contributing to long-term growth and competitive positioning.

Negative Factors

High Financial Leverage

High leverage and negative equity can pose financial risks, limiting the company's ability to withstand economic downturns or invest in growth.

Decreased Operating Margin

Decreased margins due to tariffs can impact profitability, reducing the company's ability to reinvest in business operations and innovation.

Market Uncertainty

Ongoing market uncertainty can hinder strategic planning and growth, affecting long-term business stability and performance.

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

Market Cap

$27.96B

Dividend YieldN/A

Average Volume (3M)135.18K

Price to Earnings (P/E)32.7

Beta (1Y)1.07

Revenue Growth4.77%

EPS Growth7.93%

CountryUS

Employees16,000

SectorHealthcare

Sector Strength45

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)13.36

Shares Outstanding20,325,250

10 Day Avg. Volume146,558

30 Day Avg. Volume135,176

Financial Highlights & Ratios

PEG Ratio8.96

Price to Book (P/B)-1.22K

Price to Sales (P/S)7.14

P/FCF Ratio33.86

Enterprise Value/Market Cap1.09

Enterprise Value/Revenue7.55

Enterprise Value/Gross Profit13.13

Enterprise Value/Ebitda24.51

Forecast

1Y Price Target

$1,486.86

Price Target Upside7.94% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering9

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

Mettler-Toledo Business Overview & Revenue Model

Company DescriptionMettler-Toledo International Inc. engages in the manufacture and supply of precision instruments and services worldwide. It operates in five segments: U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations, and Other. The company's laboratory instruments include laboratory balances, liquid pipetting solutions, automated laboratory reactors, titrators, pH meters, process analytics sensors and analyzer technologies, physical value analyzers, thermal analysis systems, and other analytical instruments; and LabX, a laboratory software platform to manage and analyze data generated from its instruments. Its industrial instruments comprise industrial weighing instruments and related terminals, automatic dimensional measurement and data capture solutions, vehicle scale systems, industrial software, metal detection, x-ray, checkweighing, camera-based imaging equipment, track-and-trace solutions, and product inspection systems. The company's retail weighing solutions consist of networked scales and software, stand-alone scales, and automated packaging and labeling solutions for handling fresh goods. It serves the life science industry, independent research organizations, and testing labs; food and beverage manufacturers; food retailers; chemical, specialty chemical, and cosmetics companies; food retailers; transportation and logistics, metals, and electronics industries; and the academic community through its direct sales force and indirect distribution channels. The company was incorporated in 1991 and is based in Columbus, Ohio.

How the Company Makes MoneyMettler-Toledo generates revenue through multiple key streams including the sale of its precision instruments, which encompass scales, balances, and analytical equipment. The company also derives income from its service offerings, which include maintenance, calibration, and support services that ensure the optimal performance of their equipment. Additionally, Mettler-Toledo benefits from recurring revenue through consumables and software solutions integrated with their measurement instruments. Strategic partnerships with industry leaders and compliance with regulatory standards enhance their market reach and customer retention, contributing significantly to their earnings.

Mettler-Toledo Key Performance Indicators (KPIs)

Any

Revenue By Segment

Revenue By Segment
Analyzes income from different business segments, highlighting which areas drive growth and profitability, and where the company might be vulnerable or have expansion opportunities.

Chart InsightsMettler-Toledo's Retail segment experienced a notable surge in 2023, peaking in Q3, but faced a decline by year-end. The Laboratory segment shows steady growth, with a significant uptick expected by the end of 2024, suggesting strong demand resilience. The Industrial segment remains relatively stable, with minor fluctuations, indicating consistent performance. The absence of earnings call insights leaves the reasons for these trends open to market dynamics and internal strategic shifts.

Data provided by:

The Fly

Mettler-Toledo Earnings Call Summary

Earnings Call Date:Feb 05, 2026

(Q4-2025)

% Change Since: |

Next Earnings Date:Apr 30, 2026

Earnings Call Sentiment Positive

The call presented a generally positive operational and financial story: the company delivered broad-based sales growth, strong adjusted EPS performance, exceptional free cash flow conversion, clear product and service milestones, and constructive guidance for FY2026 (sales ≈4%, EPS growth 8–9%). Material headwinds remain from tariffs, unfavorable foreign exchange, and margin compression in the recent period, and management is conservatively guiding Q1 given market caution. On balance the positive execution, cash generation, product momentum and maintained/raised guidance outweigh the disclosed challenges.

Q4-2025 Updates

Positive Updates

Quarterly Sales Growth

Q4 sales of $1.1 billion; local-currency sales up 5% (4% excluding previously communicated acquisitions); reported U.S. dollar sales up 8%.

Geographic Strength

Local-currency sales growth by region in Q4: Americas +7% (includes 3% benefit from acquisitions), Europe +4%, Asia/Rest of World +4%, China +3%.

Product Area Outperformance

Q4 growth by product: Product Inspection strong (reported growth 7%; management later noted 11% reported / 7% organic), Food Retail +19%, Industrial +7% (3% acquisition benefit; core Industrial +2% excluding acquisitions), Laboratory +3%, Service +8% (6% organic).

Adjusted EPS and Reported EPS

Q4 adjusted EPS $13.36, up 8% year-over-year; reported EPS $13.98 versus $11.96 prior year. Full-year adjusted EPS increased 4% (8% when excluding 2024 shipping-delay distortions).

Full-Year Guidance and Confidence

FY2026 guidance: local-currency sales growth ~4% (≈3.5% excl. acquisitions); operating margin expected to increase 60–70 bps excluding currency; adjusted EPS guidance $46.05–$46.70 (8%–9% growth).

Free Cash Flow and Balance Sheet Actions

FY2025 adjusted free cash flow $878 million with a conversion ratio of 99% of adjusted net income; FY2026 free cash flow expected ≈$900 million (≈+5% per share); planned share repurchases $825–$875 million.

Service Business Milestone

Service revenues reached $1.0 billion for the first time; Service grew 8% in Q4 (6% organic) and management expects mid–high single-digit growth for the business in 2026; serviceable installed base ≈$3 billion with ~1/3 penetration.

Product and Commercial Innovation

New product launches and go-to-market programs highlighted: Vero electronic pipette (2,800 cycles per charge), X3 Series X-ray inspection solutions, Spinnaker sales & marketing program and automation/digital integration initiatives to drive share gains.

Negative Updates

Gross Margin and Tariff Headwinds

Q4 gross margin 59.8%, down 140 basis points vs. prior year; incremental gross tariff costs were a ~190 basis-point headwind in the quarter and management estimated tariffs reduced operating profit by ~7% in Q4; FY2025 tariffs were a ~$50 million headwind (≈130 bps to operating margin) and reduced EPS growth by ~5%.

Operating Margin Compression

Adjusted operating margin in Q4 was 32.1%, down 160 basis points year-over-year; unfavorable currency was a ~100-basis-point headwind to operating margin in the quarter and ~50 bps for FY2025.

Organic Gross Margin Pressure

Organic gross margin (ex-FX and acquisitions) declined ~20 basis points in Q4 despite ongoing mitigation efforts, reflecting tariff, mix and inventory/FX effects.

Market Caution and Soft End Markets

Management baked in cautious customer behavior for Q1 2026 and assumed gradual improvement through the year; certain end markets remain soft (biotech/academia, some chemical specialty demand) and core Industrial guided to modest growth with Q1 likely flattish.

China and Lab Momentum Moderate

China grew just 3% in Q4 and is guided to low-single-digit growth for 2026; Laboratory had modest Q4 growth (+3%) with some softness in biotech/academic demand and lab products flattish in China.

Mix & Acquisition Effects on Margins

Recent acquisitions (distribution/service oriented) contributed to reported sales growth but produced mix impacts that were dilutive to gross margin; acquired revenue provided 2–3 percentage points of benefit in various line items but complicated margin comparisons.

Visibility and Short Backlog

Management notes limited near-term visibility (seasonality, volatile headlines, Chinese New Year timing); company typically carries only ~1.5 months of backlog, increasing sensitivity to short-term order patterns.

Company Guidance

The company guided 2026 local-currency sales growth of approximately 4% (about 3.5% excl. previously announced acquisitions) with Q1 local-currency sales of ~3%; adjusted EPS for the full year of $46.05–$46.70 (up 8–9%) and Q1 EPS of $8.60–$8.75 (up 5–7%); operating margin expected to be up 60–70 basis points excluding currency (reported margin flat to slightly up), while Q1 margin is expected to be down ~100 bps at the midpoint (flat excl. unfavorable currency); guidance assumes current U.S. import and retaliatory tariffs remain in effect and does not assume a material market improvement versus 2025; FX at recent spot rates is estimated to be about a 1% benefit to full‑year sales (slight EPS headwind) and roughly a 4% benefit to Q1 sales (neutral to EPS); additional financial assumptions include total amortization ≈$78M (purchased intangible amortization ≈$27M pretax, ≈$1.04 excluded from adjusted EPS), interest expense ≈$70M, other income ≈$19M, a pre‑discrete tax rate of ~19%, free cash flow of ≈$900M (≈+5% per share) with Q1 FCF ≈$100M, and share repurchases of $825M–$875M.

Mettler-Toledo Financial Statement Overview

Summary

Strong profitability and cash generation (high margins; ~$849M 2025 free cash flow close to earnings) support a solid fundamental profile, but high debt and negative shareholder equity materially elevate balance-sheet risk and reduce financial flexibility.

Income Statement

Very Positive

Profitability is a clear strength: in 2025 revenue was $4.03B with strong gross margin (~57.5%) and healthy operating and net margins (EBIT margin ~27.8%, net margin ~21.6%). Earnings have been resilient and generally improving versus 2023, with net income rising to ~$869M in 2025 from ~$789M in 2023. The main offset is growth: revenue growth was modest in 2024–2025 (roughly low-single-digit after a small decline in 2023), indicating a more mature growth profile.

Balance Sheet

Negative

Leverage and capitalization are the key concerns. Total debt is high and fairly steady (~$2.15B in 2025), while shareholders’ equity is negative in 2023–2025 (about -$24M in 2025), which weakens balance-sheet flexibility and makes debt-to-equity and equity-based return metrics distorted/less informative. Total assets increased to ~$3.71B in 2025, but the combination of sizable debt and negative equity increases financial risk even with strong profitability.

Cash Flow

Positive

Cash generation is consistently strong. 2025 operating cash flow was ~$956M and free cash flow was ~$849M, with free cash flow running close to net income (about 0.89x in 2025), suggesting earnings quality is solid. The softer spot is momentum: free cash flow declined ~4.6% in 2025 after being roughly flat in 2024, and operating cash flow relative to EBIT is under 1.0 across years (still healthy in absolute dollars, but not a standout conversion vs. operating profit).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.03B	3.87B	3.79B	3.92B	3.72B
Gross Profit	2.32B	2.25B	2.17B	2.24B	2.11B
EBITDA	1.23B	1.22B	1.18B	1.24B	1.10B
Net Income	869.19M	863.14M	788.78M	872.50M	768.99M
Balance Sheet
Total Assets	3.71B	3.24B	3.36B	3.49B	3.33B
Cash, Cash Equivalents and Short-Term Investments	66.89M	59.36M	69.81M	95.97M	98.56M
Total Debt	2.34B	2.13B	2.20B	2.13B	1.80B
Total Liabilities	3.74B	3.37B	3.51B	3.47B	3.16B
Stockholders Equity	-23.64M	-126.89M	-149.94M	24.79M	171.42M
Cash Flow
Free Cash Flow	848.65M	864.45M	860.55M	737.83M	801.25M
Operating Cash Flow	955.77M	968.35M	965.87M	859.07M	908.83M
Investing Cash Flow	-193.87M	-119.46M	-131.69M	-139.40M	-314.11M
Financing Cash Flow	-755.17M	-855.98M	-859.59M	-716.04M	-590.55M

Mettler-Toledo Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price1377.55

Price Trends

50DMA

1412.62

Negative

100DMA

1399.64

Negative

200DMA

1308.64

Positive

Market Momentum

MACD

-14.82

Negative

RSI

45.28

Neutral

STOCH

52.41

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTD, the sentiment is Neutral. The current price of 1377.55 is below the 20-day moving average (MA) of 1385.11, below the 50-day MA of 1412.62, and above the 200-day MA of 1308.64, indicating a neutral trend. The MACD of -14.82 indicates Negative momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 52.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MTD.

Mettler-Toledo Risk Analysis

Mettler-Toledo disclosed 29 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 (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A	73 Outperform	$35.90B	27.77	20.62%	0.72%	6.73%	3.34%
DGX	70 Neutral	$22.74B	23.36	14.17%	1.80%	13.74%	14.87%
WAT	69 Neutral	$32.13B	30.53	29.28%	―	6.90%	3.86%
DHR	67 Neutral	$147.32B	41.30	7.05%	0.53%	2.90%	-4.81%
MTD	66 Neutral	$27.96B	32.68	―	―	4.77%	7.93%
TMO	61 Neutral	$192.95B	28.95	13.04%	0.30%	3.91%	7.09%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

MTD

Mettler-Toledo

1,377.55

67.58

5.16%

Agilent

122.90

-11.30

-8.42%

DHR

Danaher

209.50

-0.32

-0.15%

DGX

Quest Diagnostics

202.41

31.53

18.45%

TMO

Thermo Fisher

510.93

-22.73

-4.26%

WAT

Waters

333.33

-45.94

-12.11%

Mettler-Toledo Corporate Events

Executive/Board Changes

Mettler-Toledo Adds Experienced Independent Director to Board

Positive

Jan 20, 2026

On January 16, 2026, Mettler-Toledo’s board appointed Michael J. Tokich as an independent director, effective February 5, 2026, expanding the board from nine to ten members with compensation aligned to the company’s other independent directors and no related-party arrangements disclosed. Announced publicly on January 20, 2026, the appointment brings to Mettler-Toledo nearly two decades of U.S. public company CFO experience from Tokich’s long tenure at healthcare and life sciences firm STERIS, bolstering the company’s financial, operational and IT expertise at board level and potentially strengthening its governance and strategic oversight for stakeholders.

The most recent analyst rating on (MTD) stock is a Buy with a $1600.00 price target. To see the full list of analyst forecasts on Mettler-Toledo stock, see the MTD Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Feb 07, 2026