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MDT

MedtronicNYSE:MDT Stock Report

Market Cap

US$173.3b

7D

0.02%

1Y

24.2%

Updated

27 Sep, 2021

Data

Company Financials +
MDT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance1/6
Financial Health4/6
Dividends5/6

MDT Overview

Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide.

Medtronic Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Medtronic
Historical stock prices
Current Share PriceUS$128.75
52 Week HighUS$98.94
52 Week LowUS$135.89
Beta0.81
1 Month Change-3.78%
3 Month Change3.38%
1 Year Change24.24%
3 Year Change29.41%
5 Year Change49.03%
Change since IPO6,190.08%

Recent News & Updates

Shareholder Returns

MDTUS Medical EquipmentUS Market
7D0.02%-0.8%2.0%
1Y24.2%32.6%32.8%

Return vs Industry: MDT underperformed the US Medical Equipment industry which returned 32.6% over the past year.

Return vs Market: MDT underperformed the US Market which returned 32.8% over the past year.

Price Volatility

Is MDT's price volatile compared to industry and market?
MDT volatility
MDT Beta0.81
Industry Beta0.88
Market Beta1

Stable Share Price: MDT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: MDT's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194990,000Geoff Marthahttps://www.medtronic.com

Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. It operates through four segments: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit. The Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; AF ablation products; insertable cardiac monitor systems; mechanical circulatory support; TYRX products; and remote monitoring and patient-centered software.

Medtronic Fundamentals Summary

How do Medtronic's earnings and revenue compare to its market cap?
MDT fundamental statistics
Market CapUS$173.27b
Earnings (TTM)US$3.88b
Revenue (TTM)US$31.60b

44.6x

P/E Ratio

5.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MDT income statement (TTM)
RevenueUS$31.60b
Cost of RevenueUS$10.44b
Gross ProfitUS$21.16b
ExpensesUS$17.27b
EarningsUS$3.88b

Last Reported Earnings

Jul 30, 2021

Next Earnings Date

Nov 23, 2021

Earnings per share (EPS)2.88
Gross Margin66.95%
Net Profit Margin12.29%
Debt/Equity Ratio50.1%

How did MDT perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

82%

Payout Ratio

Valuation

Is Medtronic undervalued compared to its fair value and its price relative to the market?

44.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MDT ($128.75) is trading above our estimate of fair value ($111.48)

Significantly Below Fair Value: MDT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MDT is good value based on its PE Ratio (44.6x) compared to the US Medical Equipment industry average (51.4x).

PE vs Market: MDT is poor value based on its PE Ratio (44.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: MDT is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: MDT is good value based on its PB Ratio (3.4x) compared to the US Medical Equipment industry average (4.7x).


Future Growth

How is Medtronic forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDT's forecast earnings growth (9% per year) is above the savings rate (2%).

Earnings vs Market: MDT's earnings (9% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: MDT's earnings are forecast to grow, but not significantly.

Revenue vs Market: MDT's revenue (5.1% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: MDT's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDT's Return on Equity is forecast to be low in 3 years time (16.1%).


Past Performance

How has Medtronic performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDT has a large one-off loss of $1.5B impacting its July 30 2021 financial results.

Growing Profit Margin: MDT's current net profit margins (12.3%) are lower than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: MDT's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: MDT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MDT had negative earnings growth (-12.1%) over the past year, making it difficult to compare to the Medical Equipment industry average (40.5%).


Return on Equity

High ROE: MDT's Return on Equity (7.6%) is considered low.


Financial Health

How is Medtronic's financial position?


Financial Position Analysis

Short Term Liabilities: MDT's short term assets ($22.4B) exceed its short term liabilities ($7.8B).

Long Term Liabilities: MDT's short term assets ($22.4B) do not cover its long term liabilities ($32.4B).


Debt to Equity History and Analysis

Debt Level: MDT's debt to equity ratio (50.1%) is considered high.

Reducing Debt: MDT's debt to equity ratio has reduced from 62.9% to 50.1% over the past 5 years.

Debt Coverage: MDT's debt is well covered by operating cash flow (28%).

Interest Coverage: MDT's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet


Dividend

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

1.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MDT's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: MDT's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: MDT's dividends per share have been stable in the past 10 years.

Growing Dividend: MDT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.1%), MDT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MDT's dividends in 3 years are forecast to be well covered by earnings (38.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Geoff Martha (51 yo)

1.42yrs

Tenure

US$16,471,649

Compensation

Mr. Geoffrey Straub Martha, also known as Geoff, serves as Director at Medtronic plc since November 01, 2019 and serves as its Chief Executive Officer since April 27, 2020. He serves as Chairman at Medtron...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD16.47M) is above average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Geoff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: MDT's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: MDT's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Medtronic plc's employee growth, exchange listings and data sources


Key Information

  • Name: Medtronic plc
  • Ticker: MDT
  • Exchange: NYSE
  • Founded: 1949
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$173.273b
  • Shares outstanding: 1.35b
  • Website: https://www.medtronic.com

Number of Employees


Location

  • Medtronic plc
  • 20 On Hatch
  • Lower Hatch Street
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:54
End of Day Share Price2021/09/27 00:00
Earnings2021/07/30
Annual Earnings2021/04/30


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.