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

-3.7%

MDT

-1.6%

US Medical Equipment

0.07%

US Market


1 Year Return

14.2%

MDT

13.8%

US Medical Equipment

8.9%

US Market

Return vs Industry: MDT matched the US Medical Equipment industry which returned 13.8% over the past year.

Return vs Market: MDT exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

MDTIndustryMarket
7 Day-3.7%-1.6%0.07%
30 Day-5.7%-4.3%-0.3%
90 Day2.4%-4.3%-1.6%
1 Year16.7%14.2%14.7%13.8%11.3%8.9%
3 Year37.6%28.8%70.7%65.6%46.3%36.8%
5 Year73.1%55.9%117.3%93.5%62.1%44.3%

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 compared to its fair value and its price relative to the market?

31.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MDT ($104.49) is trading above our estimate of fair value ($94.15)

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 (31.8x) compared to the Medical Equipment industry average (41.8x).

PE vs Market: MDT is poor value based on its PE Ratio (31.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MDT is poor value based on its PEG Ratio (2.1x)


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 (3.7x).


Next Steps

Future Growth

How is Medtronic forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDT's forecast earnings growth (15.4% per year) is above the savings rate (2.7%).

Earnings vs Market: MDT's earnings (15.4% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: MDT's revenue (4.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MDT's revenue (4.7% 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 (15.3%).


Next Steps

Past Performance

How has Medtronic performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MDT's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: MDT's earnings growth over the past year (39.8%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: MDT earnings growth over the past year (39.8%) exceeded the Medical Equipment industry 28.2%.


Return on Equity

High ROE: MDT's Return on Equity (8.8%) is considered low.


Return on Assets

ROA vs Industry: MDT's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: MDT has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Medtronic's financial position?


Financial Position Analysis

Short Term Liabilities: MDT's short term assets ($22.7B) exceeds its short term liabilities ($8.5B)

Long Term Liabilities: MDT's short term assets (22.7B) do not cover its long term liabilities (32.3B)


Debt to Equity History and Analysis

Debt Level: MDT's debt to equity ratio (51.9%) is considered high

Reducing Debt: MDT's debt to equity ratio has reduced from 65.8% to 51.9% over the past 5 years.

Debt Coverage: MDT's debt is well covered by operating cash flow (26%).

Interest Coverage: MDT's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: MDT has a low level of unsold assets or inventory.

Debt Coverage by Assets: MDT's 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?

2.07%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MDT's dividend (2.07%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MDT's dividend (2.07%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (62%), 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 (34.3% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Omar Ishrak (63yo)

8.8yrs

Tenure

US$17,796,325

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

Compensation vs. Market: Omar's total compensation ($USD17.80M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Omar's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.8yrs

Average Tenure

57yo

Average Age

Experienced Management: MDT's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MDT's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$878,97618 Jun 19
Carol Surface
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares9,000
Max PriceUS$97.66
SellUS$826,92012 Jun 19
Robert J. ten Hoedt
EntityIndividual
Shares9,000
Max PriceUS$91.88
SellUS$1,056,58307 Jun 19
Geoffrey Martha
EntityIndividual
Role
Senior Key Executive
Executive VP & Group President of Medtronic Restorative Therapies Group
Shares11,000
Max PriceUS$96.05
BuyUS$1,007,16028 May 19
Richard Anderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,900
Max PriceUS$92.40
BuyUS$251,61009 Jan 19
Karen Parkhill
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,000
Max PriceUS$83.87
BuyUS$1,008,54009 Jan 19
Omar Ishrak
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares12,000
Max PriceUS$84.05

Ownership Breakdown


Management Team

  • Mike Coyle (57yo)

    Executive VP and Group President of Cardiac & Vascular Group

    • Tenure: 4.8yrs
    • Compensation: US$6.08m
  • Mark Ploof

    Senior Vice President of Global Operations and Business Services

    • Tenure: 3yrs
  • Karen Parkhill (54yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$5.21m
  • Rick Kuntz (62yo)

    Senior VP and Chief Scientific

    • Tenure: 4.8yrs
  • Omar Ishrak (63yo)

    Chairman & CEO

    • Tenure: 8.8yrs
    • Compensation: US$17.80m
  • Brad Lerman (62yo)

    Senior VP

    • Tenure: 4.8yrs
    • Compensation: US$4.55m
  • Sean Salmon

    EVP & Group President of Medtronic Diabetes

    • Tenure: 0yrs
  • Carol Surface (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 4.8yrs
    • Compensation: US$5.52m
  • Geoff Martha (49yo)

    Executive VP & Group President of Medtronic Restorative Therapies Group

    • Tenure: 4.3yrs
    • Compensation: US$4.17m
  • Ryan Weispfenning

    Vice President of Investor Relations

    • Tenure: 4.3yrs

Board Members

  • Scott Donnelly (57yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$410.00k
  • Jim Lenehan (70yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$365.00k
  • Ken Powell (65yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$350.00k
  • Randy Hogan (63yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$375.00k
  • Richard Anderson (64yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$365.00k
  • Craig Arnold (59yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$370.00k
  • Denise O’Leary (61yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$370.00k
  • Betsy Nabel (67yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$385.00k
  • Mike Leavitt (68yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$370.50k
  • Omar Ishrak (63yo)

    Chairman & CEO

    • Tenure: 8.8yrs
    • Compensation: US$17.80m

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$140.191b
  • 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

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 Analysis2019/10/23 00:41
End of Day Share Price2019/10/22 00:00
Earnings2019/07/26
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.