NYSE:MDT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Medtronic's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

NYSE:MDT

-0.6%

US Medical Equipment

-1.0%

US Market


1 Year Return

13.4%

NYSE:MDT

14.5%

US Medical Equipment

-0.4%

US Market

MDT underperformed the Medical Equipment industry which returned 14.5% over the past year.

MDT outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

MDTIndustryMarket
7 Day1.1%-0.6%-1.0%
30 Day1.9%-0.7%-3.3%
90 Day17.3%10.2%0.8%
1 Year15.9%13.4%15.5%14.5%1.9%-0.4%
3 Year26.1%18.1%67.0%61.8%39.4%30.4%
5 Year79.4%61.6%131.4%104.8%54.2%37.1%

Price Volatility Vs. Market

How volatile is Medtronic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

29.88x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Medtronic's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Medtronic's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Medtronic is poor value based on expected growth next year.


Price Based on Value of Assets

Medtronic is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

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

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Medtronic's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

Medtronic's earnings are expected to grow by 13.6% yearly, however this is not considered high growth (20% yearly).

Medtronic's revenue growth is positive but not above the United States of America market average.

Medtronic's earnings growth is positive but not above the United States of America market average.

Medtronic's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Medtronic is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Medtronic performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (49.3% vs 7.3%)

Medtronic's earnings growth has exceeded the US Medical Equipment industry average in the past year (49.3% vs 28.9%).


Return on Equity

Medtronic has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Medtronic used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Medtronic has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Medtronic's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Medtronic's level of debt (50.4%) 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 (60.7% vs 50.4% today).

Debt is well covered by operating cash flow (27.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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

2.15%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Medtronic's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Medtronic's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Omar Ishrak (63yo)

8.6yrs

Tenure

US$17,585,131

Compensation

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 Healt ...


CEO Compensation Analysis

Omar's remuneration is higher than average for companies of similar size in United States of America.

Omar's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

58yo

Average Age

The tenure for the Medtronic management team is about average.


Board Age and Tenure

8.6yrs

Average Tenure

63.5yo

Average Age

The tenure for the Medtronic board of directors is about average.


Insider Trading

Medtronic individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$878,97618 Jun 19
Carol Surface
EntityIndividual
Role
Senior VP & Chief Human Resources Officer
Shares9,000
Max PriceUS$97.66
SellUS$826,92012 Jun 19
Robert J. ten Hoedt
EntityIndividual
Role
Executive VP and Group President
Shares9,000
Max PriceUS$91.88
SellUS$1,056,58307 Jun 19
Geoffrey Martha
EntityIndividual
Shares11,000
Max PriceUS$96.05
BuyUS$1,007,16028 May 19
Richard Anderson
EntityIndividual
Role
Member of the Board of Directors
Shares10,900
Max PriceUS$92.40
BuyUS$251,61009 Jan 19
Karen Parkhill
EntityIndividual
Role
Executive VP & CFO
Shares3,000
Max PriceUS$83.87
BuyUS$1,008,54009 Jan 19
Omar Ishrak
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares12,000
Max PriceUS$84.05
SellUS$570,37229 Aug 18
Richard Kuntz
EntityIndividual
Role
Senior VP and Chief Scientific
Shares5,949
Max PriceUS$95.88
BuyUS$249,28523 Aug 18
Richard Anderson
EntityIndividual
Role
Member of the Board of Directors
Shares2,600
Max PriceUS$95.88

Ownership Breakdown


Management Team

  • Mark Ploof

    Senior Vice President of Global Operations and Business Services

    • Tenure: 2.8yrs
  • Carol Surface (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 4.6yrs
    • Compensation: $5.52m
  • Mike Coyle (57yo)

    Executive VP and Group President of Cardiac & Vascular Group

    • Tenure: 4.6yrs
    • Compensation: $5.66m
  • Rob ten Hoedt (58yo)

    Executive VP and Group President

    • Tenure: 4.6yrs
    • Compensation: $6.50m
  • Omar Ishrak (63yo)

    Chairman & CEO

    • Tenure: 8.6yrs
    • Compensation: $17.59m
  • Karen Parkhill (54yo)

    Executive VP & CFO

    • Tenure: 3.2yrs
    • Compensation: $3.63m
  • Brad Lerman (62yo)

    Senior VP

    • Tenure: 4.6yrs
    • Compensation: $4.41m
  • Ryan Weispfenning

    Vice President of Investor Relations

    • Tenure: 4.2yrs
  • Rick Kuntz (62yo)

    Senior VP and Chief Scientific

    • Tenure: 4.6yrs
  • Sean Salmon

    Senior VP & President of Coronary & Renal Denervation Unit


Board Members

  • Randy Hogan (63yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: $373.27k
  • Betsy Nabel (67yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: $378.89k
  • Omar Ishrak (63yo)

    Chairman & CEO

    • Tenure: 8.6yrs
    • Compensation: $17.59m
  • Richard Anderson (64yo)

    Director

    • Tenure: 17.6yrs
    • Compensation: $372.89k
  • Jim Lenehan (70yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: $365.89k
  • Ken Powell (65yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: $356.14k
  • Scott Donnelly (57yo)

    Lead Independent Director

    • Tenure: 2.1yrs
    • Compensation: $402.14k
  • Craig Arnold (59yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: $366.52k
  • Mike Leavitt (68yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: $366.52k
  • Denise O’Leary (61yo)

    Independent Director

    • Tenure: 19.6yrs
    • Compensation: $366.52k

Company Information

Medtronic plc's company bio, 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$137.815b
  • Shares outstanding: 1.34b
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2M6XTRA (XETRA Trading Platform)YesNew Ordinary SharesDEEURJan 1969
MDT NBMV (Bolsa Mexicana de Valores)YesNew Ordinary SharesMXMXNJan 1969
2M6DB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURJan 1969
MDTNYSE (New York Stock Exchange)YesNew Ordinary SharesUSUSDJan 1969
MDTSWX (SIX Swiss Exchange)YesNew Ordinary SharesCHCHFJan 1969
0Y6XLSE (London Stock Exchange)YesNew Ordinary SharesGBUSDJan 1969
MDTC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/2 COM USD0.0001BRBRLApr 2016

Biography

Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. It operates in four segments: Cardiac and Vascular  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 00:55
End of Day Share Price2019/08/16 00:00
Earnings2019/04/26
Annual Earnings2019/04/26


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.