Medtronic Plc

MDT

Electromedical & Electrotherapeutic Apparatus

Mkt Cap

$109.2B

PE

25.99

Debt

$25.18B

Cash

$1.623B

EV

$132.7B

FCF

$4.931B

Market Cap

$109.2B

P/E Ratio

25.99

Debt

$25.18B

Cash

$1.623B

EV

$132.7B

FCF

$4.931B

Charts data: {"Earnings":[{"time":"2015-04-23","value":2675000000},{"time":"2016-04-28","value":3538000000},{"time":"2017-04-27","value":4024000000},{"time":"2018-04-26","value":3095000000},{"time":"2019-04-25","value":4631000000},{"time":"2020-04-23","value":4789000000},{"time":"2021-04-29","value":3606000000},{"time":"2022-04-28","value":5039000000},{"time":"2023-04-27","value":3758000000}],"Sales":[{"time":"2015-04-23","value":20261000000},{"time":"2016-04-28","value":28833000000},{"time":"2017-04-27","value":29710000000},{"time":"2018-04-26","value":29953000000},{"time":"2019-04-25","value":30557000000},{"time":"2020-04-23","value":28913000000},{"time":"2021-04-29","value":30117000000},{"time":"2022-04-28","value":31686000000},{"time":"2023-04-27","value":31227000000}],"Net Margins":[{"time":"2015-04-23","value":0.13202704703617787},{"time":"2016-04-28","value":0.12270662088579058},{"time":"2017-04-27","value":0.13544261191518006},{"time":"2018-04-26","value":0.10332854805862518},{"time":"2019-04-25","value":0.1515528356841313},{"time":"2020-04-23","value":0.16563483554110608},{"time":"2021-04-29","value":0.11973304113955573},{"time":"2022-04-28","value":0.1590292242630815},{"time":"2023-04-27","value":0.12034457360617415}],"Assets":[{"time":"2015-04-23","value":106685000000},{"time":"2016-04-28","value":99782000000},{"time":"2017-04-27","value":99816000000},{"time":"2018-04-26","value":91393000000},{"time":"2019-04-25","value":89694000000},{"time":"2020-04-23","value":90689000000},{"time":"2021-04-29","value":93083000000},{"time":"2022-04-28","value":90981000000},{"time":"2023-04-27","value":90948000000}],"Stockholders Equity":[{"time":"2015-04-23","value":53230000000},{"time":"2016-04-28","value":52063000000},{"time":"2017-04-27","value":50416000000},{"time":"2018-04-26","value":50822000000},{"time":"2019-04-25","value":50212000000},{"time":"2020-04-23","value":50872000000},{"time":"2021-04-29","value":51602000000},{"time":"2022-04-28","value":52722000000},{"time":"2023-04-27","value":51665000000}],"ROE":[{"time":"2015-04-23","value":0.05025361638173962},{"time":"2016-04-28","value":0.06795613007318058},{"time":"2017-04-27","value":0.07981593145033322},{"time":"2018-04-26","value":0.060898823344221004},{"time":"2019-04-25","value":0.09222894925515814},{"time":"2020-04-23","value":0.09413822928133354},{"time":"2021-04-29","value":0.06988101236386186},{"time":"2022-04-28","value":0.09557679905921626},{"time":"2023-04-27","value":0.07273783025258879}],"ROA":[{"time":"2015-04-23","value":0.03891831091531143},{"time":"2016-04-28","value":0.05734501212643563},{"time":"2017-04-27","value":0.057064999599262645},{"time":"2018-04-26","value":0.07463372468350968},{"time":"2019-04-25","value":0.07404062702075948},{"time":"2020-04-23","value":0.05675440240823033},{"time":"2021-04-29","value":0.05178174317544557},{"time":"2022-04-28","value":0.06322199140479881},{"time":"2023-04-27","value":0.06030918766767823}]}

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.

Sector

10-Q
10/27/23
10-Q
7/28/23
10-K
4/28/23
10-Q
1/27/23
10-Q
10/28/22
10-Q
7/29/22
10-K
4/29/22
10-Q
1/28/22
10-Q
10/29/21
10-Q
7/30/21
10-K
4/30/21
10-Q
1/29/21
10-Q
10/30/20
10-Q
7/31/20
10-K
4/24/20
10-Q
1/24/20
10-Q
10/25/19
10-Q
7/26/19
10-K
4/26/19
10-Q
1/25/19
10-Q
10/26/18
10-Q
7/27/18
10-K
4/27/18
10-Q
1/26/18

DCF

Discounted Cash Flow Valuation of Medtronic Plc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$4.931B	$4.957B	$4.983B	$5.009B	$5.036B	$5.062B	$5.089B	$5.116B	$5.143B	$5.17B	$5.197B	$51.97B
DCF		$4.31B	$3.768B	$3.294B	$2.879B	$2.517B	$2.2B	$1.923B	$1.681B	$1.47B	$1.285B	$12.85B
Value	$38.17B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 2.9%

Earnings Stability 10%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	04-2015	04-2016	04-2017	04-2018	04-2019	04-2020	04-2021	04-2022	04-2023	TTM
Net Margin	13%	12%	14%	10%	15%	17%	12%	16%	12%	13%
ROA	3.9%	5.7%	5.7%	7.5%	7.4%	5.7%	5.2%	6.3%	6%	6.2%
ROE	5%	6.8%	8%	6.1%	9.2%	9.4%	7%	9.6%	7.3%	8.1%

What is the average Net Margin?

The average Net Margin over the past 5 years is +13.66%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.18%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +6.35%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.31%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +8.09%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.13%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	04-2015	04-2016	04-2017	04-2018	04-2019	04-2020	04-2021	04-2022	04-2023	TTM
Debt FCF	-	7.65	7.27	7.69	4.47	4.60	5.45	4.69	5.37	5.11
Debt Equity	0.71	0.61	0.81	0.55	0.52	0.54	0.52	0.53	0.48	0.48
MIN
Graham Stability	-	-	-	91%	100%	100%	86%	100%	84%	84%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 5.11.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.29.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.84.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	04-2016	04-2018	04-2020	04-2022	Trend
Revenue	1.1%	0.84%	2.6%	-1.4%	-3.5%
Net Income	0.87%	4%	-7.8%	-25%	-3.9%
Stockholders Equity	-0.11%	0.33%	0.52%	-2%	0.39%
FCF	1.3%	4.8%	-8.7%	-23%	-2.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +0.84%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -3.49%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +3.96%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -3.87%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +0.33%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.39%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +4.84%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -2.5%.