Medline Inc. (MDLN): a likely value trap?

Avoid — earnings show profits collapsing (net income -58% YoY) from tariff costs, with margins deteriorating for three straight quarters, not a one-off.

⚠ TRAP Fundamentals58/100

Fell 13% in 1 trading day(s) — now $36.66

Why MDLN dropped

MDLN fell after its Aug 5, 2026 Q2 report showed net sales up 11.6% but net income down 58.3% due to tariff costs and margin compression, and the COO announced his retirement the same day, adding leadership uncertainty on top of weak results.

Fwd P/E 22.4Op margin 5.1%Rev growth 11.6%Debt/equity 65.9%Analyst upside 38.2%

How this scored 58/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 2.3%

✅ Generates cash Free cash flow $1.0B

✅ Not drowning in debt Debt/equity 65.9% (limit 200%)

✅ Can pay its bills Current ratio 4.3 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 3/25

Operating margin 5.1% 2/9

Net profit margin 2.3% 1/8

Return on equity 4.9% 0/8

Growth Is it getting bigger, or dying? 21/25

Revenue growth 11.6% 5/9

Earnings growth 267.9% 8/8

Expected profit change 63.8% 8/8

Value Is it cheap right now? 12/25

Forward P/E 22.4 6/10

PEG ratio unknown 2/8

Analyst target upside 38.2% 4/7

Balance sheet Will it survive? 22/25

Debt / equity 65.9% 7/10

Current ratio 4.3 8/8

Free cash flow $1.0B 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-06. Research only — not financial advice.