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General information
Medtronic, PLC develops therapeutic and diagnostic medical products. The Company"s principal products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, heart failure management, heart valve replacement, malignant and non-malignant pain, and movement disorders. Medtronic"s products are sold worldwide.
  • Bad financial results growth rate -26.0% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (-3.3%)
  • Dividend yield for the last twelve months 2.2%
  • Free cash flow yield 3.1% (LTM)
  • Share price is 37.6% higher than minimum and 15.4% lower than maximum for the last 3 years
  • The company is overvalued by EV / LTM EBITDA multiple compared to target level (22.5x vs 18.2x)
  • Fundamental value created in LTM (estimate) -48.4%
Key Financials
Ticker: MDT
Share price, USD: 102.59
Common stocks: 1 340 377 511

Dividend Yield:  2.2%
FCF Yield LTM: 3.1%
EV / LTM EBITDA: 22.5x
Last revenue growth (y/y):  -13.2%
Last growth of EBITDA (y/y):  -38.9%
Historical revenue growth:  -2.0%
Historical growth of EBITDA:  -4.6%
Target EV / EBITDA (hist 75% percentile): 18.2x
Fundamental value created in LTM: -48.4%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 137 509
Net Debt ($m): 15 825
EV (Enterprise Value): 153 334
EBITDA LTM ($m): 6 823
EV / LTM EBITDA: 22.5x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

Free Cash Flow ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends

Share price

Payment USD per share

Multiple and potential

EV / LTM EBITDA and 75% percentile

Potential dynamics

Value Creation

Fundamental Value Creation is calculated as ratio of value created in the last period to current market cap of the company.

The fundamental value can be created in two ways:
• cash generation in form of dividend payments or debt reduction or share buybacks
growth of the company enterprise value through improving financial results

The growth of enterprise value in the last period is estimated as product of:
• annualized increase of EBITDA in the last reporting period year over year
• relevant EV/EBITDA multiple (average between actual EV/EBITDA for the company and average general level of 10.0x is applied)

Parameter
#
Formula
Value
    
    
            EBITDA (pre LTM Q)
(1)
2 197
            EBITDA (last Q)
(2)
1 342
            EBITDA LTM
(3)
6 823
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
5.084
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
-4 347
    
    
            EV
(6)
154 112
        Mult
(7)
(6) / (3)
22.6x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
16.3x
    
    
    Equity+
(10)
(5) * (9)
-70 828
    FCF LTM
(11)
4 329
    
    
Value+
(12)
(10) + (11)
-66 499
Cap
(13)
137 509
    
    
Fundamental value creation
(14)
(12) / (13)
-48.4%

Potential

EBITDA LTM       6 823
 
EBITDA E       5 748
Mult aim       18.2x
 
EV E       104 411
NetDebt corr       15 167
 
Cap E       89 244
Cap       137 509
Growth potential            -35.1%