Medtronic Plc

Health Care
Biotechnology: Electromedical & Electrotherapeutic Apparatus
www.medtronic.com

Earnings Score
Moat Score
Safety Score

Market Cap $107.73B
PE 25
Debt $28.33B
Cash $1.39B
EV $134.67B
FCF $5.50B

Earnings

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Sales & Net Margins

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Earnings	$4.29B
EBIT	$5.41B
ROE	9%
ROA	6%
FCF	$5.50B
Equity	$48.72B
Growth Stability	84%
PE	25.12
PEG	-15.64
PB	2.21
P/FCF	19.59
P/S	3.27
Price/Cash	0.01
Debt/Equity	0.58
Debt/FCF	5.15
Net Margins	14%
Gross Margins	65%
Op. Margins	16%
Earnings CAGR	1%
Sales Growth YoY	5%
Sales Growth QoQ	6%
Sales CAGR	1%
FCF CAGR	1%
Equity CAGR	-0%
Earnings Stability	0.01
Earnings Growth YoY	40%
Earnings Growth QoQ	22%
Earnings CAGR 5Y	-2%

Sales CAGR 5Y	3%
FCF CAGR 5Y	-3%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	2%
Sales CAGR 3Y	2%
FCF CAGR 3Y	-3%
Equity CAGR 3Y	-3%
Market Cap	$107.73B
Revenue	$33.00B
Dividend Yield	3%
Payout Ratio	85%
Assets	$90.04B
Total Debt	$28.33B
Cash	$1.39B
Shares Outstanding	1.28B
EV	134.67B
Earnings Score	6%
Moat Score	85%
Safety Score	84%
Final Score	58%
Working Capital	10.24B
Current Ratio	1.84
Gross Profit	$21.46B
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	-6%

Assets & ROA

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Stockholders Equity & ROE

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One of the largest medical device companies, Medtronic develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, advanced energy, and surgical tools. The company markets its products to healthcare institutions and physicians in the United States and overseas. Foreign sales account for almost 50% of the company's total sales.

SEC Filings

Direct access to Medtronic Plc (MDT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Oct 25
- 10-Q Jul 26
- 10-K Apr 26
- 10-Q Jan 26
2023
- 10-Q Oct 27
- 10-Q Jul 28
- 10-K Apr 28
- 10-Q Jan 27
2022
- 10-Q Oct 28
- 10-Q Jul 29
- 10-K Apr 29
- 10-Q Jan 28

Sector Comparison

How does Medtronic Plc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Medtronic Plc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 1%

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Medtronic Plc Discounted Cash Flow

Fully customizable DCF calculator online for Medtronic Plc.

Years

Calculation mode

= $58B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$5.5B	$5.5B	$5.6B	$5.6B	$5.6B	$5.7B	$5.7B	$5.8B	$5.8B	$5.8B	$5.9B	$59B
DCF		$5B	$4.6B	$4.2B	$3.9B	$3.5B	$3.2B	$3B	$2.7B	$2.5B	$2.3B	$23B
Value	$58B

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.

Years	04/2015	04/2016	04/2017	04/2018	04/2019	04/2020	04/2021	04/2022	04/2023	04/2024	TTM
Net Margins	13%	12%	14%	10%	15%	17%	12%	16%	12%	11%	14%
ROA	-	6%	6%	7%	7%	6%	5%	6%	6%	6%	6%
ROE	-	7%	8%	6%	9%	9%	7%	10%	7%	7%	9%

Good Net Margins (14.17%)

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

Safety and Stability

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.

Years	04/2015	04/2016	04/2017	04/2018	04/2019	04/2020	04/2021	04/2022	04/2023	04/2024	TTM
Debt over FCF	-	7.65	7.27	7.69	4.47	4.6	5.45	4.69	5.37	5.05	5.15
Debt over Equity	0.71	0.61	0.81	0.55	0.52	0.54	0.52	0.53	0.48	0.52	0.58
Growth Stability	-	-	-	91%	100%	100%	86%	100%	84%	89%	84%

Bad Debt/FCF ratio (5.15)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.58)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (84%)

The company has a stability in its earnings that is not too good nor too bad.

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.

Years	04/2015	04/2016	04/2017	04/2018	04/2019	04/2020	04/2021	04/2022	04/2023	04/2024	CAGR 5Y
Revenue YoY growth	-	42%	3%	1%	2%	-5%	4%	5%	-1%	4%	3%
Earnings YoY growth	-	32%	14%	-23%	50%	3%	-25%	40%	-25%	-2%	-2%
Equity YoY growth	-	-2%	-3%	1%	-1%	1%	1%	2%	-2%	-2%	-1%
FCF YoY growth	-	-4%	35%	-36%	62%	3%	-19%	22%	-23%	14%	-3%