| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 100 | 41.3x | 17.4x | Top tier | |
Growth | 0 | 14.7% | 7.1% | Bottom tier | |
Quality | 0 | 5.5% | 4.5% | Bottom tier | |
Safety | 99 | 4.1x | 2.6x | Top tier | |
Capital Return | 100 | 0.31% | 0.18% | Top tier | |
Momentum | 0 | — | 1.3% | Bottom tier | |
Sentiment | 100 | 15 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
78% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.31% as of 2026-10-05. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Medline Inc. (MDLN) operates as a vertically integrated manufacturer and distributor of medical and surgical products, generating revenue through two interconnected segments: Medline Brand for higher-margin products and Supply Chain Solutions for distribution and supply management. The strategy relies on winning prime vendor contracts with hospitals and care facilities, then expanding the relationship by converting a portion of customers' purchases to Medline Brand products; management estimated the available conversion opportunity at approximately $5 billion. Surgical product drivers include operating-room setups, while customer channels cover acute care, physicians' offices, laboratories, skilled nursing, senior care, home care, and hospice care.
In Q2 of fiscal year 2026, revenue increased 12% year over year to $7.7 billion, and gross profit reached $2.2 billion, with a calculated gross margin of approximately 28.6%, while net income was $60 million and earnings per share were $0.07. Medline Brand generated revenue of $3.5 billion, up 7%, compared with $4.1 billion and 16% growth in Supply Chain Solutions, equivalent to approximately 45% and 53% of reported revenue, respectively, with rounding differences in segment figures. Adjusted earnings before interest, taxes, depreciation, and amortization reached $1.1 billion at a margin of 13.8%, but included an exceptional net benefit of $243 million from an IEEPA tariff refund, so management identified the underlying performance of this metric at $817 million.
Revenue for the twelve months ended in fiscal year 2026 was approximately $28.6 billion, gross profit was $7.8 billion, and net income was $837 million. By comparison, fiscal year 2025 recorded revenue of $28.4 billion, gross profit of $7.5 billion, and net income of $1.2 billion. Net income in Q2 of fiscal year 2026 was affected by $336 million in costs related to the Tracy distribution center fire, which were excluded from adjusted earnings before interest, taxes, depreciation, and amortization but reduced reported net income.
The average analyst price target is $46.22 with a “Buy” consensus, and the target range extends from $37 to $60; the average is approximately 9% below the 52-week range high of $50.876, while the highest target exceeds that high. However, Stifel Nicolaus's reduction of its target to $45 and the wide range reflect a reassessment related to the lower adjusted earnings guidance, quality pressures, and the Tracy fire, despite the higher sales growth guidance.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Revenue in Q2 of fiscal year 2026 increased 12% to $7.7 billion, and first-half growth reached 11% to $15 billion. Supply Chain Solutions led performance with 16% growth to $4.1 billion, supported by new customer implementations and increased business from existing customers. New contracts also exceeded $650 million in the first half, against an annual target of $1 billion, and management raised its fiscal year 2026 organic growth guidance to 9%–10%.
The company lowered its fiscal year 2026 adjusted earnings before interest, taxes, depreciation, and amortization guidance from $3.5–$3.6 billion to $3.3–$3.4 billion. Management attributed 75% of the pressure behind the revision to internal factors, including operational investments, quality remediation, and retail weakness, versus 25% to external factors, including the Middle East conflict and the Tracy fire. It estimated that approximately half of the impact is temporary and the other half will become part of the cost base, with one-third of the additional costs expected to be incurred in Q3 and two-thirds in Q4 of fiscal year 2026.
Automated analysis for informational purposes only — not investment advice.
The FDA issued a warning letter dated May 28, 2026 concerning violations in manufacturing practices, and Medline is working on a global quality plan and investments in people, processes, and technology. The effects include products removed from the market because of recalls or inspection findings, including CHG wipes manufactured in Waukegan, whose return to market has been delayed longer than expected. In August 2026, Kessler Topaz Meltzer & Check began investigating potential violations of federal securities laws, while the stock's decline exceeded 12% on August 5, 2026 following the results and guidance revision.
The fire reduced net income in the first half of fiscal year 2026 by approximately $336 million due to inventory and fixed-asset losses and other related costs, with these items excluded from adjusted earnings before interest, taxes, depreciation, and amortization. The company expects $50–$100 million in additional costs in the second half of fiscal year 2026, and a portion of lease expenses and labor inefficiencies will remain in the cost base. Medline secured 1.6 million square feet across two centers and plans to begin service from Tracy in Q4 of fiscal year 2026, then occupy Stockton in January 2027.
Medline Brand generated revenue of $3.5 billion in Q2 of fiscal year 2026, up 7%, while Supply Chain Solutions generated approximately $4.1 billion, up 16%. Approximately 90% of revenue from new contracts initially begins in Supply Chain Solutions, after which the company uses the prime vendor relationship to convert customer purchases to higher-margin Medline Brand products. Management estimates the conversion opportunity at approximately $5 billion, while surgical solutions alone recorded revenue of $1.6 billion, up 9% during the quarter.
The analyst consensus is “Buy,” with an average price target of $46.22 within a wide range extending from $37 to $60. The average target is approximately 9% below the 52-week range high of $50.876, while the highest target exceeds that level. In contrast, Stifel Nicolaus lowered its target to $45 after Medline reduced its adjusted earnings guidance, highlighting the divergence between strong sales growth and margin and quality risks.
