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ZYBERNO

Stock Report

Updated Aug 28, 2026

Medline Inc. (MDLN)

Healthcare • NASDAQ

$34.65

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

34.0/100

WEAK BUSINESS

Medline Inc. (MDLN) scores 34/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full MDLN quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-15.0%

Market Overestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full MDLN valuation analysis · → View full MDLN Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):POOR (5.7%)

Debt-to-Equity (Solvency Risk):AVERAGE (0.67x)

Operating Margin (Operational Efficiency):CRITICAL (0.0%)

Return on Capital (Capital Efficiency):CRITICAL (4.5%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Medline Inc. (MDLN) stock report — Zyberno Score 34/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, Medline Inc. (MDLN) shows a Brina Gap of -15.0%, which weakens the case: based on the company's ROIC (4.5%) and reinvestment rate (-43.6%), the business can fundamentally grow at -1.9% — but the current enterprise value implies the market expects 13.1%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:34.65

Market Cap:$29.68B

Valuation Multiples (2)

P/B Ratio:1.56x

Peg Ratio:-999.00x

Enterprise Metrics (3)

Enterprise Value:$39.93B

Ev Ebitda Ratio:15.85x

Pfcf Ratio:22.89x

Price Action & Momentum (1)

% of 52-Week High:68.1%

B. Profitability Assessment

Return Metrics (7)

ROE:

5.7%

📊 Click to view full MDLN ROE analysis →

ROA:2.6%

Roic:

4.5%

📊 Click to view full MDLN ROIC analysis →

Reinvestment Rate:-43.6%

Fundamental Growth Rate (g):-1.9%

Market-Implied Growth Rate:13.1%

Brina Gap:

-15.0%

☷ Click to view full MDLN Brina Gap analysis →

Margin Analysis (1)

Ebitda Margin:8.9%

Yield Metrics (2)

Earnings Yield:-$999.00

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-45.3%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:4.33x

Quick Ratio:2.61x

Cash Ratio:0.86x

Leverage Analysis (3)

Debt To Equity Ttm:0.67x

Debt-to-Equity Ratio:0.67x

Debt To Ebitda:4.99x

Coverage Ratios (2)

Interest Coverage Ratio:13.17x

Times Interest Earned:13.17

Capital Structure (4)

Working Capital:9,032,000,000.00

Cash And Cash Equivalents:2,327,000,000.00

Long Term Debt:$12.55B

Net Debt:$10.25B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

$28.43B

Cost Of Revenue Ttm:$20.91B

Profitability Breakdown (2)

$7.52B$2.21B

Bottom Line Performance (3)

Net income TTM: $1.03B

Linear Growth: -45.3%

📊 Click to view full MDLN Net Income analysis & methodology →

Income Before Tax:$235.00M

Ebitda Ttm:2,519,000,000.00

Operating Expenses (5)

Operating Expenses:1,820,000,000.00

R And D Expense:80,000,000.00

Sga Expense:1,295,000,000.00

Income Tax Expense:$96.00M

Interest Expense:168,000,000.00

Expense Ratios (3)

R And D To Revenue Percentage:1.0%

Sga To Revenue Percentage:16.9%

Ebitda Margin:8.9%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$39.35B

Current Assets:$11.74B

Ppe Net:4,697,000,000.00

Goodwill:8,072,000,000.00

Intangible Assets:$13.54B

Liability Structure (4)

Total Liabilities:20,273,000,000.00

Current Liabilities:2,710,000,000.00

Long Term Debt:$12.55B

Short Term Debt:$28.00M

Equity & Capital (3)

Equity:$19.08B

Retained Earnings:$182.00M

Common Stock:0.00

Working Capital Items (3)

Accounts Receivable:3,661,000,000.00

Inventory:4,665,000,000.00

Accounts Payable:1,043,000,000.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:29,000,000.00

C. Cash Flow Analysis

Operating Activities (2)

$1.74B$1.30B

Investment Activities (1)

Investing Cash Flow:-$96.00M

Financing Activities (3)

Financing Cash Flow:-$13.00M

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:307,000,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (1)

Earnings Per Share Ttm:$1.20

Revenue & Cash Per Share (2)

Sales Per Share Ttm:33.19

Operating Cash Flow Per Share:$2.04

Book Value & Capital (2)

Book Value Per Share:$22.27

Cash Per Share:2.72

Dividend Policy (1)

Dividend Payout Ratio:0.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.73x

Working Capital Turnover Ttm:3.15x

Receivables Management (2)

Receivables Turnover Ttm:7.77x

Days Sales Outstanding Ttm:47.00

Inventory Management (2)

Inventory Turnover Ttm:4.48x

Days Inventory Outstanding Ttm:81.42

Payables & Cash Cycle (2)

Days Payable Outstanding:18.20

Cash Conversion Cycle:110.21

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:40.00

Quality Score:65.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:-43.6%

Fundamental Growth Rate (g):-1.9%

Market-Implied Growth Rate:13.1%

Brina Gap:

-15.0%

☷ Click to view full MDLN Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (1)

Net Income Growth Rate (Linear):-45.3%

Other Growth Rates (1)

Book Value Growth Rate (Linear):15.1%

C. Company Profile & Context

Corporate Information (6)

Symbol:MDLN

Company Name:Medline Inc.

Sector:Healthcare

Industry:Medical Devices

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:856.67M

Shares Outstanding Basic:856.67M

Shares Outstanding Diluted:860.89M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-28 12:50:22 UTC

Data Timestamp:2026-08-28T12:50:22.581668