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Medline

MDLN
39
Medical - Instruments & Supplies · Healthcare
Exchange
NASDAQ
Winston Score
39
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Weak
Cash Flow
Strong
Stability
Mixed
Valuation
Good

Winston Score History

The full picture

Medline Inc. is one of the largest privately-held manufacturers and distributors of medical supplies in the United States, having gone public in recent years. The company makes and sells a wide range of healthcare products — including gloves, gowns, surgical supplies, and patient care items — primarily to hospitals, nursing homes, and other healthcare facilities across North America.

Medline earns revenue by selling these products directly to healthcare providers, cutting out middlemen and running its own distribution network of warehouses and trucks. This vertically integrated model — making, warehousing, and delivering its own products — gives it a cost and logistics advantage over pure distributors. The company operates mainly in the US but has some international presence, and its scale, with tens of thousands of product SKUs, makes it difficult for smaller rivals to match its breadth. The key risk is margin pressure, as healthcare customers constantly push for lower prices and raw material costs can be unpredictable.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-83.3% YoY

YoY Growth Rate

Earnings declining

Insider Activity

36.1%ownership

Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$2.7B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Medline is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
28.8%
Modest — 28.8% gross margin
Profit after running costs
Operating Margin
5.1%
Thin — 5.1% operating margin
Return on the money invested
ROCE
7.5%
Weak — 7.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
N/A
Data not available
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
1/4 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
288%
Turns 288% of profit into real cash
Spare cash per sale
FCF Margin
4.5%
Thin free cash flow (4.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
1.09
Elevated debt (1.09)
Covers its interest
Interest Cover
2.50x
Tight — interest eats into profit (2.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
39.8x
no trend
Pricey — P/E 39.8

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+22.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (39.8 → 17.9)

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Dividends

Not applicable for this business.
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