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MDT

MedtronicNYSE:MDT Stock Report

Last Price

US$107.49

Market Cap

US$144.5b

7D

-0.4%

1Y

-9.1%

Updated

18 Jan, 2022

Data

Company Financials +
MDT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends5/6

MDT Stock Overview

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

Medtronic Competitors

Abbott Laboratories

NYSE:ABT

US$217.1b

Intuitive Surgical

NasdaqGS:ISRG

US$105.6b

Becton Dickinson

NYSE:BDX

US$74.2b

Boston Scientific

NYSE:BSX

US$63.0b

Price History & Performance

Summary of all time highs, changes and price drops for Medtronic
Historical stock prices
Current Share PriceUS$107.49
52 Week HighUS$135.89
52 Week LowUS$98.38
Beta0.79
1 Month Change6.82%
3 Month Change-11.74%
1 Year Change-9.15%
3 Year Change23.55%
5 Year Change45.59%
Change since IPO5,151.42%

Recent News & Updates

Jan 11

Medtronic: Short-Term Pain, Long-Term Gain

In the short term, Medtronic is likely to miss its revised forecast; however, company performance is likely to exceed historical values long term, and the stock is a Hold. The company has a sustainable competitive advantage across a variety of products and appears to be gaining share. The strategy of diversifying across markets has resulted in a low cost of funding and the recent debt refinancing should enhance future cash flows.

Dec 24

Medtronic Is The Prescription For Easing Your Portfolio Fears

MDT is an Irish company for tax purposes (15% dividend tax withholding if you don't file with your broker). MDT has fallen 25% in a matter of weeks. MDT might be just what your diversified and prudently risk-managed portfolio is looking for right now.

Shareholder Returns

MDTUS Medical EquipmentUS Market
7D-0.4%-5.0%-3.5%
1Y-9.1%0.8%10.2%

Return vs Industry: MDT underperformed the US Medical Equipment industry which returned 3.8% over the past year.

Return vs Market: MDT underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is MDT's price volatile compared to industry and market?
MDT volatility
MDT Average Weekly Movement3.4%
Medical Equipment Industry Average Movement8.1%
Market Average Movement6.6%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.4%

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

Volatility Over Time: MDT's weekly volatility (3%) 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$144.53b
Earnings (TTM)US$4.70b
Revenue (TTM)US$31.80b

30.7x

P/E Ratio

4.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MDT income statement (TTM)
RevenueUS$31.80b
Cost of RevenueUS$10.29b
Gross ProfitUS$21.50b
ExpensesUS$16.80b
EarningsUS$4.70b

Last Reported Earnings

Oct 29, 2021

Next Earnings Date

Feb 22, 2022

Earnings per share (EPS)3.50
Gross Margin67.63%
Net Profit Margin14.79%
Debt/Equity Ratio49.0%

How did MDT perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

69%

Payout Ratio

Valuation

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

11.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDT ($107.49) is trading below our estimate of fair value ($121.43)

Significantly Below Fair Value: MDT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MDT is good value based on its PE Ratio (30.7x) compared to the US Medical Equipment industry average (47.8x).

PE vs Market: MDT is poor value based on its PE Ratio (30.7x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: MDT is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: MDT is good value based on its PB Ratio (2.8x) compared to the US Medical Equipment industry average (3.5x).


Future Growth

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

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDT's forecast earnings growth (9.7% per year) is above the savings rate (2%).

Earnings vs Market: MDT's earnings (9.7% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: MDT's revenue (5.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: MDT's revenue (5.3% 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?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDT has high quality earnings.

Growing Profit Margin: MDT's current net profit margins (14.8%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: MDT's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: MDT's earnings growth over the past year (32.6%) exceeds its 5-year average (1.1% per year).

Earnings vs Industry: MDT earnings growth over the past year (32.6%) underperformed the Medical Equipment industry 51.2%.


Return on Equity

High ROE: MDT's Return on Equity (9.1%) is considered low.


Financial Health

How is Medtronic's financial position?


Financial Position Analysis

Short Term Liabilities: MDT's short term assets ($22.7B) exceed its short term liabilities ($7.8B).

Long Term Liabilities: MDT's short term assets ($22.7B) do not cover its long term liabilities ($31.8B).


Debt to Equity History and Analysis

Debt Level: MDT's net debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: MDT's debt to equity ratio has reduced from 64.3% to 49% 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 (18.4x coverage).


Balance Sheet


Dividend

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

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MDT's dividend (2.34%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: MDT's dividend (2.34%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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: With its reasonable payout ratio (69.2%), MDT's dividend 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 (42.4% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Geoff Martha (51 yo)

1.75yrs

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 ($USD16.47M) is above average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

Experienced Management: MDT's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: MDT's board of directors are considered experienced (7.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MDT insiders have sold more shares than they have bought 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
  • Implied Market Cap: US$144.527b
  • Shares outstanding: 1.34b
  • 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 Analysis2022/01/18 23:49
End of Day Share Price2022/01/18 00:00
Earnings2021/10/29
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.