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Medtronic

NYSE:MDT
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MDT
NYSE
$118B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. The last earnings update was 76 days ago. More info.


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MDT Share Price and Events
7 Day Returns
0.1%
NYSE:MDT
-3.8%
US Medical Equipment
-3.9%
US Market
1 Year Returns
3.7%
NYSE:MDT
10%
US Medical Equipment
1.4%
US Market
MDT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Medtronic (MDT) 0.1% 2.5% -4.3% 3.7% 10.3% 47.7%
US Medical Equipment -3.8% -3.9% -1.1% 10% 54.1% 90.5%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • MDT underperformed the Medical Equipment industry which returned 10% over the past year.
  • MDT outperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
MDT
Industry
5yr Volatility vs Market

Value

 Is Medtronic undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Medtronic to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Medtronic.

NYSE:MDT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 26 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MDT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.1%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.896 (1 + (1- 12.5%) (21.15%))
1.041
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.041 * 7.14%)
10.17%

Discounted Cash Flow Calculation for NYSE:MDT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Medtronic is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MDT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.17%)
2019 5,229.17 Analyst x6 4,746.64
2020 6,322.73 Analyst x6 5,209.70
2021 6,815.88 Analyst x6 5,097.82
2022 8,061.50 Analyst x2 5,473.08
2023 8,546.00 Analyst x1 5,266.63
2024 8,965.27 Est @ 4.91% 5,015.19
2025 9,346.58 Est @ 4.25% 4,746.04
2026 9,701.40 Est @ 3.8% 4,471.64
2027 10,038.65 Est @ 3.48% 4,200.12
2028 10,365.16 Est @ 3.25% 3,936.56
Present value of next 10 years cash flows $48,163.43
NYSE:MDT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $10,365.16 × (1 + 2.73%) ÷ (10.17% – 2.73%)
$143,204.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $143,204.94 ÷ (1 + 10.17%)10
$54,387.42
NYSE:MDT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $48,163.43 + $54,387.42
$102,550.85
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $102,550.85 / 1,341.15
$76.46
NYSE:MDT Discount to Share Price
Calculation Result
Value per share (USD) From above. $76.46
Current discount Discount to share price of $88.27
= -1 x ($88.27 - $76.46) / $76.46
-15.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Medtronic is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Medtronic's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Medtronic's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MDT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-25) in USD $3.58
NYSE:MDT Share Price ** NYSE (2019-05-15) in USD $88.27
United States of America Medical Equipment Industry PE Ratio Median Figure of 64 Publicly-Listed Medical Equipment Companies 38.98x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Medtronic.

NYSE:MDT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MDT Share Price ÷ EPS (both in USD)

= 88.27 ÷ 3.58

24.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medtronic is good value based on earnings compared to the US Medical Equipment industry average.
  • Medtronic is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Medtronic's expected growth come at a high price?
Raw Data
NYSE:MDT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts
10.7%per year
United States of America Medical Equipment Industry PEG Ratio Median Figure of 55 Publicly-Listed Medical Equipment Companies 2.21x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:MDT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.69x ÷ 10.7%

2.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medtronic is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Medtronic's assets?
Raw Data
NYSE:MDT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-25) in USD $37.17
NYSE:MDT Share Price * NYSE (2019-05-15) in USD $88.27
United States of America Medical Equipment Industry PB Ratio Median Figure of 182 Publicly-Listed Medical Equipment Companies 4.28x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:MDT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MDT Share Price ÷ Book Value per Share (both in USD)

= 88.27 ÷ 37.17

2.37x

* Primary Listing of Medtronic.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medtronic is good value based on assets compared to the US Medical Equipment industry average.
X
Value checks
We assess Medtronic's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Medtronic has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Medtronic expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Medtronic expected to grow at an attractive rate?
  • Medtronic's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Medtronic's earnings growth is positive but not above the United States of America market average.
  • Medtronic's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MDT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MDT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts 10.7%
NYSE:MDT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 26 Analysts 4.1%
United States of America Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 21.5%
United States of America Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 8.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MDT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MDT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-04-30 37,399 1
2023-04-30 35,874 9,846 4
2022-04-30 34,834 9,364 7,551 7
2021-04-30 33,272 8,462 6,784 20
2020-04-30 31,720 8,083 5,763 26
2019-04-30 30,544 6,644 5,587 26
NYSE:MDT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-25 30,555 5,958 4,826
2018-10-26 30,378 5,905 2,168
2018-07-27 29,947 5,649 3,163
2018-04-27 29,953 4,684 3,011
2018-01-26 29,725 5,419 2,859
2017-10-27 29,639 5,502 5,069
2017-07-28 29,934 6,067 4,115
2017-04-28 29,710 6,880 4,080
2017-01-27 29,361 6,433 3,968
2016-10-28 29,012 6,145 4,242
2016-07-29 28,725 5,952 3,647
2016-04-29 28,833 5,218 3,538
2016-01-29 28,435 5,804 2,434

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Medtronic's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
  • Medtronic's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MDT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below

All data from Medtronic Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MDT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-04-30
2023-04-30 5.76 5.76 5.76 1.00
2022-04-30 5.26 5.49 5.11 3.00
2021-04-30 4.95 5.96 4.48 8.00
2020-04-30 4.20 5.42 3.71 12.00
2019-04-30 4.07 6.03 3.52 11.00
NYSE:MDT Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-25 3.58
2018-10-26 1.60
2018-07-27 2.34
2018-04-27 2.22
2018-01-26 2.10
2017-10-27 3.71
2017-07-28 3.00
2017-04-28 2.96
2017-01-27 2.86
2016-10-28 3.04
2016-07-29 2.60
2016-04-29 2.51
2016-01-29 1.72

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Medtronic is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Medtronic's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Medtronic has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Medtronic performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Medtronic's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Medtronic's year on year earnings growth rate has been positive over the past 5 years.
  • Medtronic's 1-year earnings growth exceeds its 5-year average (67.4% vs 4.9%)
  • Medtronic's earnings growth has exceeded the US Medical Equipment industry average in the past year (67.4% vs 31.9%).
Earnings and Revenue History
Medtronic's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Medtronic Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MDT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-25 30,555.00 4,826.00 11,800.00 2,325.00
2018-10-26 30,378.00 2,168.00 11,809.00 2,323.00
2018-07-27 29,947.00 3,163.00 9,939.00 2,289.00
2018-04-27 29,953.00 3,011.00 11,760.00 2,253.00
2018-01-26 29,725.00 2,859.00 11,993.00 2,217.00
2017-10-27 29,639.00 5,069.00 11,878.00 2,188.00
2017-07-28 29,934.00 4,115.00 9,813.00 2,186.00
2017-04-28 29,710.00 4,080.00 11,691.00 2,193.00
2017-01-27 29,361.00 3,968.00 9,592.00 2,215.00
2016-10-28 29,012.00 4,242.00 9,521.00 2,231.00
2016-07-29 28,725.00 3,647.00 9,448.00 2,222.00
2016-04-29 28,833.00 3,538.00 9,469.00 2,224.00
2016-01-29 28,435.00 2,434.00 9,513.00 2,177.00
2015-10-30 25,819.00 2,316.00 8,683.00 2,004.00
2015-07-31 23,127.00 2,624.00 7,847.00 1,833.00
2015-04-24 20,261.00 2,675.00 6,904.00 1,640.00
2015-01-23 17,410.00 3,124.00 6,039.00 1,497.00
2014-10-24 17,255.00 2,909.00 6,006.00 1,484.00
2014-07-25 17,083.00 2,983.00 5,937.00 1,482.00
2014-04-25 16,893.00 3,065.00 5,847.00 1,477.00
2014-01-24 16,879.00 3,586.00 5,783.00 1,501.00
2013-10-25 16,743.00 3,812.00 5,730.00 1,517.00
2013-07-26 16,644.00 3,556.00 5,709.00 1,532.00
2013-04-26 16,569.00 3,467.00 5,698.00 1,557.00
2013-01-25 16,427.00 3,386.00 5,685.00 1,541.00
2012-10-26 16,318.00 3,242.00 5,655.00 1,529.00
2012-07-27 16,246.00 3,460.00 5,648.00 1,513.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Medtronic has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Medtronic used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.
  • Medtronic has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Medtronic's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Medtronic has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Medtronic's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Medtronic's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Medtronic is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Medtronic's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Medtronic's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Medtronic Company Filings, last reported 3 months ago.

NYSE:MDT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-25 49,941.00 25,041.00 9,150.00
2018-10-26 49,714.00 25,037.00 10,137.00
2018-07-27 50,329.00 25,244.00 11,009.00
2018-04-27 50,729.00 25,777.00 11,241.00
2018-01-26 50,340.00 28,833.00 14,436.00
2017-10-27 51,578.00 29,080.00 13,526.00
2017-07-28 50,787.00 34,021.00 13,088.00
2017-04-28 50,330.00 33,452.00 13,754.00
2017-01-27 49,493.00 32,186.00 11,459.00
2016-10-28 50,293.00 32,441.00 11,258.00
2016-07-29 50,892.00 32,152.00 12,810.00
2016-04-29 52,063.00 31,154.00 12,634.00
2016-01-29 50,816.00 35,880.00 17,287.00
2015-10-30 52,269.00 35,924.00 17,231.00
2015-07-31 52,809.00 35,600.00 17,987.00
2015-04-24 53,230.00 36,257.00 19,490.00
2015-01-23 20,173.00 28,899.00 31,160.00
2014-10-24 19,438.00 13,708.00 14,484.00
2014-07-25 19,248.00 12,800.00 13,971.00
2014-04-25 19,443.00 11,939.00 14,254.00
2014-01-24 19,354.00 12,233.00 13,667.00
2013-10-25 18,744.00 12,288.00 12,584.00
2013-07-26 18,519.00 11,195.00 11,404.00
2013-04-26 18,671.00 10,669.00 11,130.00
2013-01-25 17,836.00 11,492.00 2,464.00
2012-10-26 17,175.00 11,538.00 2,675.00
2012-07-27 17,255.00 10,871.00 2,491.00
  • Medtronic's level of debt (50.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (63.2% vs 50.1% today).
  • Debt is well covered by operating cash flow (23.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.9x coverage).
X
Financial health checks
We assess Medtronic's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Medtronic has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Medtronic's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.27%
Current annual income from Medtronic dividends. Estimated to be 2.49% next year.
If you bought $2,000 of Medtronic shares you are expected to receive $45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Medtronic's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Medtronic's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MDT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
United States of America Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MDT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-04-30
2023-04-30
2022-04-30 2.60 1.00
2021-04-30 2.24 8.00
2020-04-30 2.13 12.00
2019-04-30 1.98 12.00
NYSE:MDT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-12-07 2.000 2.241
2018-08-24 2.000 2.107
2018-06-22 2.000 2.243
2018-03-14 1.840 2.229
2018-03-02 1.840 2.257
2018-02-20 1.840 2.290
2017-08-28 1.840 2.267
2017-06-23 1.840 2.161
2017-03-15 1.720 2.063
2016-12-12 1.720 2.259
2016-12-05 1.720 2.372
2016-11-22 1.720 2.343
2016-06-27 1.720 2.015
2016-05-31 1.520 1.811
2016-03-09 1.520 1.947
2016-03-01 1.520 2.022
2015-12-09 1.520 2.006
2015-12-03 1.520 1.957
2015-06-19 1.520 2.056
2015-06-02 1.220 1.606
2015-02-27 1.220 1.585
2015-02-17 1.220 1.554
2014-08-21 1.220 1.765
2014-06-16 1.220 1.934
2014-02-13 1.120 1.879
2013-12-05 1.120 1.952
2013-08-22 1.120 2.027
2013-06-20 1.120 2.081
2013-02-14 1.040 2.175
2012-12-06 1.040 2.356
2012-08-23 1.040 2.463
2012-06-21 1.040 2.671
2012-02-16 0.970 2.554
2011-12-08 0.970 2.528
2011-08-25 0.970 2.841
2011-06-23 0.970 2.759
2011-02-17 0.900 2.259
2010-12-09 0.900 2.390
2010-08-25 0.900 2.651
2010-06-24 0.900 2.469
2010-02-18 0.820 1.928
2009-12-03 0.820 1.872
2009-08-27 0.820 2.147
2009-06-18 0.820 2.330

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Medtronic's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Medtronic's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Medtronic afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Medtronic has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Medtronic's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Omar Ishrak
COMPENSATION $17,585,131
AGE 62
TENURE AS CEO 8.3 years
CEO Bio

Mr. Omar S. Ishrak has been the Chairman and Chief Executive Officer of Medtronic plc since June 2011. Prior to joining Medtronic, Mr. Ishrak served as the Chief Executive Officer and President of GE Healthcare Systems at General Electric Company from January 2009 to May 11, 2011. He has experience in the health care industry and also has technology development and business management experience. He has strong technical expertise. Mr. Ishrak served as the Senior Vice President of General Electric Company since June 2010. He served as the Head of Healthcare Systems Division at GE Healthcare Limited since January 2009. He served as the Chief Executive Officer and President of Clinical Systems GE Healthcare Ltd. from January 2005 to 2008. He served as Senior Vice President of GE at GE Energy Services, Inc. He served as the President and Chief Executive Officer of GE Healthcare Ultrasound and BMD from 1995 to 2004. He served as the Vice President and GE Officer of General Electric Co. since 1999. Beginning in 1995, his business and technology leadership was instrumental in positioning GE to become the world's leading provider of ultrasound technology and services. He joined GE with more than 13 years of technology and business management experience. He served as Senior Vice President of Worldwide Marketing & Product Development at Elbit Ultrasound Group and various product development and engineering positions at Philips Ultrasound. He served as the Chairman of Intel-GE Care Innovations, LLC and Medtronic, Inc. He has been an Independent Director of Intel Corporation since March 21, 2017. He has been a Director of Medtronic plc since 2011. He serves as a Trustee of Asia Society. He is a Member of the Blood Center of Wisconsin. He serves on the Health Leadership Council of the Save the Children Foundation. He was a Member of the GE Corporate Executive Council. Mr. Ishrak earned a Bachelor of Science and a PhD in Electrical Engineering from the University of London, King's College.

CEO Compensation
  • Omar's compensation has been consistent with company performance over the past year.
  • Omar's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Medtronic management team in years:

4.3
Average Tenure
57
Average Age
  • The tenure for the Medtronic management team is about average.
Management Team

Omar Ishrak

TITLE
Chairman & CEO
COMPENSATION
$18M
AGE
62
TENURE
8.3 yrs

Karen Parkhill

TITLE
Executive VP
COMPENSATION
$4M
AGE
53
TENURE
2.9 yrs

Brad Lerman

TITLE
Senior VP
COMPENSATION
$4M
AGE
60
TENURE
4.3 yrs

Mike Coyle

TITLE
Executive VP and Group President of Cardiac & Vascular Group
COMPENSATION
$6M
AGE
56
TENURE
4.3 yrs

Rob ten Hoedt

TITLE
Executive VP and Group President
COMPENSATION
$6M
AGE
57
TENURE
4.3 yrs

Mark Ploof

TITLE
Senior Vice President of Global Operations and Business Services
TENURE
2.6 yrs

Rick Kuntz

TITLE
Senior VP and Chief Medical & Scientific Officer
AGE
61
TENURE
1.5 yrs

Ryan Weispfenning

TITLE
Vice President of Investor Relations
TENURE
3.9 yrs

Carol Surface

TITLE
Senior VP & Chief Human Resources Officer
COMPENSATION
$6M
AGE
52
TENURE
4.3 yrs

Sean Salmon

TITLE
Senior VP & President of Coronary & Renal Denervation Unit
Board of Directors Tenure

Average tenure and age of the Medtronic board of directors in years:

8.3
Average Tenure
62.5
Average Age
  • The tenure for the Medtronic board of directors is about average.
Board of Directors

Omar Ishrak

TITLE
Chairman & CEO
COMPENSATION
$18M
AGE
62
TENURE
8.3 yrs

Denise O’Leary

TITLE
Independent Director
COMPENSATION
$367K
AGE
60
TENURE
19.3 yrs

Mike Leavitt

TITLE
Independent Director
COMPENSATION
$367K
AGE
67
TENURE
8.3 yrs

Scott Donnelly

TITLE
Lead Independent Director
COMPENSATION
$402K
AGE
56
TENURE
1.8 yrs

Craig Arnold

TITLE
Independent Director
COMPENSATION
$367K
AGE
58
TENURE
4.3 yrs

Randy Hogan

TITLE
Independent Director
COMPENSATION
$373K
AGE
62
TENURE
4.3 yrs

Richard Anderson

TITLE
Director
COMPENSATION
$373K
AGE
63
TENURE
17.3 yrs

Jim Lenehan

TITLE
Independent Director
COMPENSATION
$366K
AGE
69
TENURE
12.3 yrs

Ken Powell

TITLE
Independent Director
COMPENSATION
$356K
AGE
64
TENURE
12.3 yrs

Betsy Nabel

TITLE
Independent Director
COMPENSATION
$379K
AGE
66
TENURE
5.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Jan 19 Buy Omar Ishrak Individual 09. Jan 19 09. Jan 19 12,000 $84.05 $1,008,540
09. Jan 19 Buy Karen Parkhill Individual 09. Jan 19 09. Jan 19 3,000 $83.87 $251,610
29. Aug 18 Sell Richard Kuntz Individual 28. Aug 18 28. Aug 18 -5,949 $95.88 $-570,372
23. Aug 18 Buy Richard Anderson Individual 23. Aug 18 23. Aug 18 2,600 $95.88 $249,285
12. Jun 18 Sell Bradley Lerman Individual 11. Jun 18 11. Jun 18 -8,910 $86.82 $-773,566
11. Jun 18 Sell Richard Kuntz Individual 08. Jun 18 08. Jun 18 -11,500 $87.13 $-1,001,995
X
Management checks
We assess Medtronic's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Medtronic has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's What You Should Know About Medtronic plc's (NYSE:MDT) 2.3% Dividend Yield

Is Medtronic plc (NYSE:MDT) a good dividend stock? … Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. … Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.

Simply Wall St -

Did Medtronic's (NYSE:MDT) Share Price Deserve to Gain 45%?

Unfortunately for shareholders, while the Medtronic plc (NYSE:MDT) share price is up 45% in the last five years, that's less than the market return. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Medtronic achieved compound earnings per share (EPS) growth of 0.06% per year.

Simply Wall St -

How Should Investors Feel About Medtronic plc's (NYSE:MDT) CEO Pay?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Omar Ishrak's Compensation Compare With Similar Sized Companies. … According to our data, Medtronic plc has a market capitalization of US$119b, and pays its CEO total annual compensation worth US$18m.

Simply Wall St -

What Type Of Shareholder Owns Medtronic plc's (NYSE:MDT)?

Generally speaking, as a company grows, institutions will increase their ownership. … Medtronic is a pretty big company. … Normally institutions would own a significant portion of a company this size.

Simply Wall St -

Is Medtronic plc's (NYSE:MDT) Stock Available For A Good Price After Accounting For Growth?

Medtronic plc (NYSE:MDT) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $92.66 is based on unrealistic expectations. … According to the analysts covering the company, the following few years should bring about good growth prospects for Medtronic … Expectations from 28 analysts are

Simply Wall St -

Will Medtronic plc's (NYSE:MDT) Earnings Grow In The Year Ahead?

Looking at Medtronic plc's (NYSE:MDT) earnings update on 25 January 2019, … with earnings expected to grow by 19% in the upcoming year … the past 5-year average growth rate of 4.9%.

Simply Wall St -

What Investors Should Know About Medtronic plc's (NYSE:MDT) Financial Strength

Medtronic plc (NYSE:MDT), a large-cap worth US$121b, comes to mind for investors seeking a strong and reliable stock investment. … Let’s take a look at Medtronic’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

How Did Medtronic plc's (NYSE:MDT) 9.7% ROE Fare Against The Industry?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Medtronic has a return on equity of 9.7% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Now An Opportune Moment To Examine Medtronic plc (NYSE:MDT)?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $98.75 at one point, and dropping to the lows of $82.45. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Medtronic's current trading price of $89.01 reflective of the actual value of the?

Simply Wall St -

Did Medtronic plc (NYSE:MDT) Insiders Sell Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Medtronic plc (NYSE:MDT). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that an insider was selling shares at slightly below the current price (US$86.47)

Simply Wall St -

Company Info

Description

Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. It operates through four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group. The Cardiac and Vascular Group segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; AF ablation product; insertable cardiac monitor systems; mechanical circulatory support; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves; percutaneous coronary intervention stents, surgical valve replacement and repair products, endovascular stent grafts, percutaneous angioplasty balloons, and products to treat superficial venous diseases in the lower extremities. The Minimally Invasive Therapies Group segment offers surgical products, including surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, hernia mechanical devices, mesh implants, and gynecology products; hardware instruments and mesh fixation device; and gastrointestinal, inhalation therapy, and renal care solutions. The Restorative Therapies Group segment offers products for spinal surgeons, neurosurgeons, neurologists, pain management specialists, anesthesiologists, orthopedic surgeons, urologists, colorectal surgeons, urogynecologists, interventional radiologists, and ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems; and therapies for vasculature in and around the brain. The Diabetes Group segment offers insulin pumps and consumables, continuous glucose monitoring systems, and therapy management software. The company was founded in 1949 and is headquartered in Dublin, Ireland.

Details
Name: Medtronic plc
MDT
Exchange: NYSE
Founded: 1949
$118,383,396,121
1,341,150,970
Website: http://www.medtronic.com
Address: Medtronic plc
20 On Hatch,
Lower Hatch Street,
Dublin,
Co. Dublin, 2,
Ireland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MDT New Ordinary Shares New York Stock Exchange US USD 02. Jan 1969
DB 2M6 New Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1969
XTRA 2M6 New Ordinary Shares XETRA Trading Platform DE EUR 02. Jan 1969
LSE 0Y6X New Ordinary Shares London Stock Exchange GB USD 02. Jan 1969
SWX MDT New Ordinary Shares SIX Swiss Exchange CH CHF 02. Jan 1969
BMV MDT N New Ordinary Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1969
BATS-CHIXE MDTZ New Ordinary Shares BATS 'Chi-X Europe' GB CHF 02. Jan 1969
BOVESPA MDTC34 BDR EACH REPR 1/2 COM USD0.0001 Bolsa de Valores de Sao Paulo BR BRL 25. Apr 2016
Number of employees
Current staff
Staff numbers
98,003
Medtronic employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 02:41
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/03/01
Last earnings reported: 2019/01/25
Last annual earnings reported: 2018/04/27


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.