Medical Devices Industry Report
Market Cap: $1.1T
Stocks: 178
Median P/E: 16.9x
Median ROIC: -6.7%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
Part of the Healthcare sector.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | +0.1% | 0.0% |
| 1 Week | -3.4% | -0.4% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +1.3% | +0.6% |
| 1 Year | -2.6% | -9.7% |
| 3 Years | +50.5% | -29.1% |
| 5 Years | +26.7% | -61.0% |
Today's Breadth: 77 advancing · 82 declining · 11 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 16.9x | 0.0x | 31.7x | -33% |
| P/B | 2.8x | 0.8x | 4.9x | -15% |
| P/S | 1.7x | 0.6x | 3.7x | — |
| P/FCF | 20.6x | 9.1x | 37.5x | — |
| EV/EBITDA | 15.3x | 9.6x | 23.3x | — |
| EV/EBIT | 21.4x | 16.4x | 31.2x | — |
Earnings Yield
3.7%
FCF Yield
-0.6%
Below Fair Value
55% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 59.4% | 59.2% | 45.5% | 69.8% |
| Operating Margin | -2.4% | — | -25.0% | 14.2% |
| Net Margin | -5.3% | -6.5% | -28.2% | 9.5% |
| FCF Margin | 0.9% | — | -12.4% | 13.0% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | -11.0% | — | -46.1% | 10.6% |
| ROA | -5.8% | — | -27.3% | 6.6% |
| ROIC | -6.7% | -11.4% | -36.8% | 10.8% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +9.6% | +10.0% | +11.3% |
| EPS | +31.4% | +17.7% | +10.6% |
| Free Cash Flow | +19.8% | +28.1% | +9.5% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.4x
Net Debt / EBITDA
1.2x
Interest Coverage
0.5x
Current Ratio
2.5x
Altman Z-Score
Safe (>3): 57 (44%)
Gray (1.8–3): 16 (12%)
Distress (<1.8): 57 (44%)
Piotroski F-Score
Strong (7–9): 33 (19%)
Moderate (4–6): 85 (48%)
Weak (0–3): 58 (33%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| ISRG | 1 | $166.6B | 73.4x | 57.4x | 20.2% | 28.4% | +20.5% | — | -0.4% | 4/9 |
| SYK | 2 | $134.2B | 42.1x | 23.1x | 10.6% | 12.9% | +11.2% | 0.9% | +3.5% | 4/9 |
| MDT | 3 | $113.6B | 22.8x | 14.6x | 7.2% | 13.9% | +3.6% | 3.4% | +1.2% | 3/9 |
| BSX | 4 | $94.4B | 49.5x | 30.4x | 9.4% | 14.4% | +19.9% | — | +3.9% | 3/9 |
| MMM | 5 | $82.8B | 26.9x | 16.1x | 29.3% | 13.0% | +1.5% | 1.8% | -0.0% | 3/9 |
| BDX | 6 | $57.0B | 31.6x | 14.5x | 5.0% | 7.7% | +8.2% | 2.3% | +1.3% | 3/9 |
| IDXX | 7 | $46.5B | 52.6x | 37.4x | 53.3% | 24.6% | +10.4% | — | +2.8% | 7/9 |
| EW | 8 | $45.8B | 47.5x | 33.4x | 15.6% | 17.7% | +11.6% | — | -4.1% | 7/9 |
| RMD | 9 | $33.9B | 26.6x | 18.9x | 29.6% | 27.2% | +9.8% | 0.8% | +0.5% | 7/9 |
| DXCM | 10 | $25.3B | 32.3x | 22.7x | 20.6% | 17.9% | +15.6% | — | +3.2% | 6/9 |
| PHIA-AS | 11 | $23.1B | 25.4x | 10.9x | 6.5% | 5.0% | +3.7% | 3.6% | — | 3/9 |
| STE | 12 | $22.3B | 35.7x | 17.7x | 7.4% | 11.3% | +6.2% | 1.0% | +3.7% | 2/9 |
| ZBH | 13 | $18.9B | 25.5x | 11.4x | 4.9% | 8.6% | +7.2% | 1.1% | -0.1% | 4/9 |
| WST | 14 | $18.9B | 40.4x | 24.6x | 24.4% | 16.1% | +6.3% | 0.3% | +3.6% | 6/9 |
| PODD | 15 | $14.0B | 82.9x | 36.8x | 19.8% | 9.1% | +30.7% | — | -2.4% | 5/9 |
| ALGN | 16 | $13.1B | — | — | 20.6% | 10.2% | +0.9% | — | +5.5% | 4/9 |
| PEN | 17 | $13.0B | 70.1x | 57.8x | 16.9% | 12.7% | +17.5% | — | +0.5% | 4/9 |
| GMED | 18 | $12.8B | 22.6x | 15.3x | 10.8% | 18.3% | +16.6% | — | +2.1% | 5/9 |
| SOLV | 19 | $11.8B | 9.1x | 6.5x | 22.1% | 18.7% | +0.9% | — | +3.9% | 4/9 |
| SN-L | 20 | $10.8B | 17.1x | 9.9x | 7.2% | 10.1% | +6.1% | 3.1% | — | 5/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Surgical & Medical Instruments & Apparatus | 100 | $568.2B | 52.5% | |
| Orthopedic, Prosthetic & Surgical Appliances & Supplies | 25 | $278.9B | 25.8% | |
| Electromedical & Electrotherapeutic Apparatus | 31 | $139.7B | 12.9% | |
| In Vitro & In Vivo Diagnostic Substances | 15 | $59.6B | 5.5% | |
| Medical - Devices | 6 | $36.1B | 3.3% | |
| Medical - Specialties | 1 | $527M | 0.0% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
4%
Median Piotroski F
5/9
Profitable Years
1 of 10
Dividends & Shareholder Returns
Paying Dividends
14%
Median Div Yield
1.4%
Median Buyback Yield
0.3%
Shareholder Yield
1.0%
Payout Ratio
37.8%
Div Growth (3Y)
4.9%
Div Growth (5Y)
4.0%
Strengths & Weaknesses
Strengths
- +[Growth]Strong secular growth with a median 5-year revenue CAGR of 11.3%, outpacing nominal GDP.
- +[Profitability]High pricing power with a median gross margin of 59.4%, reflecting differentiated products or strong brand moats.
- +[Valuation]Attractive valuations: current median P/E of 16.9x is 32.6% below the 5-year average, presenting potential value opportunity.
Weaknesses
- −[Financial Health]43.8% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at 0.5x, leaving limited cushion for debt servicing if earnings decline.
- −[Profitability]Below-average capital returns with a median ROIC of -6.7%, suggesting limited pricing power or capital-intensive operations.
- −[Quality]Only 4.5% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.