Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
MTD· Healthcare
Mettler-Toledo International
Mettler-Toledo's high ROIC of 36.1% showcases a strong economic moat, but the valuation at a P/E of 25.3 raises concerns about entry price.
Buffett fit
Partial fit
Owner
94
Durability
74
Management
67
Price
32
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Mettler-Toledo, I would focus on maintaining its strong of 36.1% while ensuring that remains positive.
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Mettler-Toledo's business appears durable, as it has been profitable in all of the last five years, which is essential for long-term viability.
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Management has effectively reduced the share count by 2.84% over the last five years, indicating a commitment to shareholder returns through , which yielded 4.22%.
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The current yield of 3.85% is below the 8-10% threshold I would consider attractive.
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- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 36.1% is in the top quintile for the healthcare sector (p80: 10.7%).
- 2 of 28.0% is well above the sector top-quintile cutoff of 16.2%.
- 3Net margin of 21.4% exceeds the sector top-quintile of 12.7%.
- 4 conversion of 0.98 indicates high earnings quality.
Concerns
5- 1 of 25.3 is high compared to the desired entry point of 10-12 for stable businesses.
- 2 yield of 3.85% is below the 8-10% target, indicating a potential overvaluation.
- 3 of 57.8% is below the sector top-quintile cutoff of 77.9%, suggesting competitive pricing pressures.
- 4Current ratio of 1.20 is below the ideal threshold of 1.5, indicating less cushion for short-term obligations.
Price history
$1,719+13.2%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Mettler-Toledo generates revenue through the sale of precision instruments across various segments, including laboratory and industrial applications. With a TTM revenue of $4.03 billion and a net income of $869.19 million, the company shows strong profitability. The of 57.8% indicates effective cost management, while the diverse customer base enhances stability.
What other investors would say
The same company, judged by three other documented playbooks.
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