Mettler-Toledo International Inc (MTD, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $1,293.22, Mettler-Toledo International Inc has witnessed a daily gain of 0.52%, marked against a three-month change of 16.66%. A thorough analysis, underlined by the GF Score, suggests that Mettler-Toledo International Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability and growth rank, and a solid GF Value and Momentum rank, GuruFocus assigned Mettler-Toledo International Inc the GF Score of 96 out of 100, which signals the highest outperformance potential.
Understanding Mettler-Toledo International Inc's Business
Mettler-Toledo International Inc, with a market cap of $27.78 billion and sales of $3.79 billion, is a leading supplier of weighing and precision instruments to the life sciences, industrial, and food retail industries. Its diverse product range includes laboratory and retail scales, pipettes, pH meters, thermal analysis equipment, titrators, metal detectors, and X-ray analyzers. Dominating the market for weighing instrumentation, Mettler-Toledo controls more than 50% of the market for lab balances. The company's sales distribution is geographically diversified, with approximately 30% of sales in the United States, 30% in Europe, 20% in China, and the remaining 20% across the rest of the world.
Profitability Rank Breakdown
The Profitability Rank showcases Mettler-Toledo International Inc's impressive standing among its peers in generating profit. The company's Operating Margin has increased from 24.21% in 2019 to 28.50% in 2023, indicating a consistent improvement in operational efficiency. Additionally, Mettler-Toledo International Inc's Gross Margin has also seen a steady rise over the past five years, reaching 59.16% in 2023. This trend underscores the company's growing proficiency in transforming revenue into profit. The strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Mettler-Toledo International Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 10.6%, which outperforms 53.3% of the companies in the Medical Diagnostics & Research industry. Moreover, Mettler-Toledo International Inc has seen a robust increase in its EBITDA over the past few years, with a three-year growth rate of 13.4% and a five-year rate of 14.4%. This trend accentuates the company's continued capability to drive growth.
Next Steps
Considering Mettler-Toledo International Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking to capitalize on such robust financial health and market leadership may find Mettler-Toledo International Inc an attractive option. With a GF Score that signals strong future performance, the company stands as a testament to the value of comprehensive financial analysis.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
