Medtronic (MDT) AI Stock Analysis

• Market Cap: $106.30B
• Dividend Yield: 3.38%
• Average Volume (3M): 7.95M
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.56
• Revenue Growth: 2.72%
• EPS Growth: 4.48%
• Country: US
• Employees: 95,000
• Sector: Healthcare
• Sector Strength: 77
• Industry: Medical - Devices
• EPS (TTM): 3.29
• Shares Outstanding: 1,282,543,500
• 10 Day Avg. Volume: 7,594,082
• 30 Day Avg. Volume: 7,946,831
• PEG Ratio: 5.63
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.49
• Price to Cash Flow (P/CF): 11.30
• P/FCF Ratio: 13.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $96.00
• Price Target Upside: 15.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

Medtronic is well-positioned with strong financial health, evidenced by stable revenue growth and efficient cash flow management. Technical analysis presents a mixed outlook with potential resistance levels. The company is fairly valued with a solid dividend yield. Positive earnings call sentiments and strategic corporate changes further enhance the company's outlook, despite some challenges in specific segments.

Positive Factors

Growth Potential

MDT's fundamental pipeline and bull thesis still look intact, indicating strong growth potential.

Product Demand

MDT has successfully scaled up Sphere 9 catheter production and is meeting strong demand by expanding manufacturing capabilities.

Negative Factors

Financial Performance

Net profit margins have fallen from 16.6% to 11.4%.

Market Competition

Medtronic is at risk of losing 50% of its insulin pump market to GLP-1 drugs.

Medtronic Business Overview & Revenue Model

Company Description

Medtronic plc is a global leader in medical technology, services, and solutions. Headquartered in Dublin, Ireland, and operationally headquartered in Minneapolis, Minnesota, Medtronic operates in four major segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group. The company develops, manufactures, and markets a wide range of medical devices and technologies to treat various chronic diseases and conditions, including cardiovascular diseases, diabetes, and neurological disorders. Medtronic's mission is to alleviate pain, restore health, and extend life, serving healthcare systems, physicians, and patients in over 150 countries worldwide.

How the Company Makes Money

Medtronic primarily generates revenue through the sale of medical devices and therapies across its four major business segments. The Cardiac and Vascular Group, which includes products for cardiac rhythm disorders, coronary artery disease, heart valves, and peripheral vascular disease, is a significant contributor to the company's revenue. The Minimally Invasive Therapies Group offers surgical solutions, advanced energy products, and patient monitoring systems. The Restorative Therapies Group provides products for spinal surgery, neuromodulation, and neurovascular therapies. The Diabetes Group focuses on insulin pumps and continuous glucose monitoring systems. Medtronic's revenue model is supported by strategic acquisitions, research and development investments, and collaborations with healthcare providers and institutions. Additionally, the company leverages its global distribution network and strong relationships with healthcare professionals to maintain and grow its market share.

Medtronic Financial Statement Overview

Summary

Medtronic demonstrates solid financial health with stable revenue growth, strong profitability, and efficient cash flow management. Despite moderate leverage, the company maintains a robust equity base, ensuring financial stability.

Income Statement

Medtronic shows strong profitability with a stable Gross Profit Margin of 52.8% in TTM. The Net Profit Margin improved to 12.8% in TTM from 11.4% previous year, indicating efficient cost management. Revenue grew by 2.58% in TTM, showcasing steady growth. EBIT and EBITDA margins also improved, reflecting operational efficiency.

Balance Sheet

The company maintains a solid financial structure with a Debt-to-Equity Ratio of 0.54, indicating moderate leverage. Return on Equity stands at 8.63%, reflecting decent profitability for shareholders. The Equity Ratio of 54.9% suggests a strong equity base, enhancing financial stability.

Cash Flow

Operating Cash Flow to Net Income Ratio is 1.71, highlighting robust cash generation relative to net income. Free Cash Flow increased by 5.13% YoY, indicating effective cash management. The Free Cash Flow to Net Income Ratio of 1.28 underscores strong cash flow coverage.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
33.20B	32.36B	31.23B	31.69B	30.12B	28.91B
	Gross Profit
20.88B	21.15B	20.51B	21.54B	19.63B	19.49B
	EBIT
6.05B	5.14B	5.49B	5.75B	4.48B	4.79B
	EBITDA
9.39B	8.20B	8.47B	9.55B	8.19B	7.83B
	Net Income Common Stockholders
4.26B	3.68B	3.76B	5.04B	3.61B	4.79B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.54B	8.01B	7.96B	10.57B	10.82B	10.95B
	Total Assets
29.31B	89.98B	90.95B	90.98B	93.08B	90.69B
	Total Debt
10.56B	26.05B	24.36B	24.11B	26.39B	24.80B
	Net Debt
9.31B	24.76B	22.82B	20.40B	22.80B	20.66B
	Total Liabilities
14.49B	39.56B	39.28B	38.26B	41.48B	39.82B
	Stockholders Equity
14.82B	50.21B	51.48B	52.55B	51.43B	50.74B
Cash Flow		Free Cash Flow
5.47B	5.20B	4.58B	5.98B	4.88B	6.02B
	Operating Cash Flow
7.29B	6.79B	6.04B	7.35B	6.24B	7.23B
	Investing Cash Flow
-2.14B	-2.37B	-3.49B	-1.66B	-2.87B	-3.20B
	Financing Cash Flow
-5.38B	-4.45B	-4.96B	-5.34B	-4.14B	-4.20B

Medtronic Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDT, the sentiment is Negative. The current price of 83.15 is below the 20-day moving average (MA) of 89.23, below the 50-day MA of 90.04, and below the 200-day MA of 85.05, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 28.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDT.

Medtronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSX	78 Outperform	$132.67B	71.90	9.03%	―	17.60%	16.84%
SYK	78 Outperform	$131.99B	44.55	15.26%	0.95%	10.23%	-5.74%
MDT	77 Outperform	$106.30B	25.19	8.42%	3.38%	2.72%	4.48%
ZBH	73 Outperform	$21.37B	24.22	7.24%	0.89%	3.84%	-9.29%
EW	68 Neutral	$40.63B	28.17	17.17%	―	-4.67%	6.23%
DXCM	61 Neutral	$23.38B	42.00	27.63%	―	11.34%	4.24%
Sector *	48 Neutral	$6.35B	1.19	-46.87%	2.63%	17.16%	1.34%

Medtronic Corporate Events

Medtronic Announces Leadership Transition in Finance Department

On March 12, 2025, Jennifer M. Kirk, Medtronic’s Global Controller and Principal Accounting Officer, announced her resignation effective May 2, 2025, to become CEO of Exubrion Therapeutics. Denise L. Blomquist, with a 21-year tenure at Medtronic, will succeed her starting March 17, 2025, ensuring a smooth transition and continuity in the company’s financial leadership.

Medtronic Appoints Thierry Pieton as New CFO

Medtronic announced the appointment of Thierry Pieton as Chief Financial Officer effective March 3, 2025. Pieton, who will report to CEO Geoff Martha, joins from Renault Group where he was CFO since March 2022. His extensive experience includes roles at Nissan, GE, and PwC, where he demonstrated strong financial leadership and innovation-driven growth, which aligns with Medtronic’s strategic financial goals. The appointment is expected to enhance Medtronic’s financial operations and strategic initiatives, contributing to its mission of transforming healthcare technology.