MDT

Medtronic plc

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Healthcare

industry

Medical - Devices

Exchange

NYSE

County of HQ

Ireland

Next Earnings Date

06/03/2026

Business Summary

Medtronic's business model revolves around innovation in medical devices, providing essential healthcare solutions globally. Its competitive moat is fortified by a strong portfolio of patents and a reputation for quality, which fosters customer loyalty. The company generates cash by selling high-margin devices and offering related services, ensuring recurring revenue streams. This strategic positioning allows Medtronic to maintain a dominant market presence and fend off competitors effectively.

 


VALUATION

P/E

20.74

Market Cap ($M USD)

$95.84B

Forward P/E

9.65

PEG

0.08

PRICE TO SALES

2.70

PRICE TO BOOK

1.95

EV / EBITDA

13.12

5-Year Average P/E

Free Cash Flow Yield

5.64%

DCF Value

$210.88

Graham Number

$55.62

Price to FCF

17.72

EV to FCF

22.69

Earnings Yield

4.82%

FCF Yield

5.64%

DIVIDEND

Yield

3.80%

Annual Payout

$2.84

Payout Ratio

78.63%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.60

Next Year EPS Growth Estimate

$7.74

Next Year Revenue Growth Estimate

$4.45T

Return on Equity (ROE)

9.54%

FREE CASH FLOW

Operating Margin

17.86%

Debt-to-Equity

0.59

Piotroski F-Score

7

Altman Z-Score

2.69

Return on Invested Capital (ROIC)

7.73%

Current Ratio

2.54

Quick Ratio

2.62

Net Debt to EBITDA

2.88

Interest Coverage

8.90

Gross Profit margin

61.95%

FCF PER SHARE

$4.22

REVENUE PER SHARE

$27.68

Gainseekers Quantitative Analysis

Summary

Medtronic’s valuation presents a compelling opportunity for value investors. The stock has traded significantly below its DCF value, suggesting a market mispricing. With a Forward P/E of 9.65 and an Earnings Yield of 4.82%, the company appears undervalued relative to its earnings potential. The Altman Z-score of 2.69 indicates moderate financial health, suggesting stability but not without risks. Overall, the market seems to have overlooked its growth prospects, creating a potential entry point for savvy investors.

AI Exposure / Tech Reliance

In the rapidly evolving healthcare sector, Medtronic is well-positioned to leverage AI and technological advancements. As a leader in medical devices, the company can integrate AI to enhance device functionality and patient outcomes. This adaptability ensures resilience in a tech-driven future.

The Bull Case

For GARP investors, Medtronic offers an attractive proposition. The company's ROIC of 7.73% and a robust Piotroski F-Score of 7 highlight efficient capital management and operational strength. With a Free Cash Flow Yield of 5.64%, Medtronic demonstrates strong cash generation capabilities. Its operating margin of 17.86% underscores pricing power, making it a solid choice for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, Medtronic faces structural challenges. The Price/Book ratio of 1.95 and Price/Sales of 2.70 suggest the stock isn't a bargain on these fronts. Additionally, the EV to FCF ratio of 22.69 indicates potential overvaluation in terms of cash flow. The stock's proximity to its 52-week low might signal market skepticism about its future prospects, warranting caution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$109.50

Institutional Ownership %

1-Year Beta

0.63

Insider Buying % (6 Mo)

Distance to 52-Week High

42.44%

Distance to 52-Week Low

0.19%

EARNINGS SURPRISE %

1.49%

50-DAY SMA

$86.34

200-DAY SMA

$93.84

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.