Medtronic Stock: The Medical Device Giant at an Inflection Point

Medtronic stands as a healthcare colossus with $33.5 billion in annual revenue, trading at $90 near multi-year lows. The medical device leader offers a rare combination of 3% dividend yield and 47-year dividend growth streak.

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Core Strengths:Market leadership across devices, dividend aristocrat status, global scale, innovation pipeline
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Main Risks:GLP-1 disruption to diabetes business, slow growth, margin pressure, regulatory challenges
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Bottom Line:Value play with catalysts emerging but patience required

Market Cap

$119.05B

52-Week High

$95.29

-1.30% from high

52-Week Low

$77.57

+21.25% from low

Avg Daily Volume

7,934,808

100-day average

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

25.64

Above market average

Forward P/E

16.50

Earnings expected to grow

PEG Ratio

2.16

Potentially overvalued

Price to Book

2.49

EV/EBITDA

14.93

EPS (TTM)

$3.62

Price to Sales

3.48

Beta

0.82

Less volatile than market

How is MDT valued relative to its earnings and growth?

Medtronic Plc trades at a P/E ratio of 25.64, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 16.50 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.16 indicates a premium valuation even accounting for growth.

What is MDT's risk profile compared to the market?

With a beta of 0.82, Medtronic Plc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.49 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

13.60%

Operating Margin

18.20%

Return on Equity

9.74%

Return on Assets

4.54%

Revenue Growth (YoY)

8.40%

Earnings Growth (YoY)

1.30%

How profitable and efficient is MDT's business model?

Medtronic Plc achieves a profit margin of 13.60%, meaning it retains $13.60 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 18.20% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 9.74% and ROA at 4.54%, the company achieves moderate returns on invested capital.

What are MDT's recent growth trends?

Medtronic Plc's revenue grew by 8.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 1.30% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS industry averages for proper context.

Dividend Information

Dividend Per Share

$2.81

Dividend Yield

3.06%

Ex-Dividend Date

9/26/2025

Dividend Date

10/17/2025

What dividend income can investors expect from MDT?

Medtronic Plc offers a dividend yield of 3.06%, paying $2.81 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 9/26/2025.

How reliable is MDT's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Medtronic Plc pays $2.81 per share in dividends against earnings of $3.62 per share, resulting in a payout ratio of 77.62%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for 10/17/2025.

Company Size & Market

Shares Outstanding

1.28B

Book Value/Share

$37.36

Asset Type

Common Stock

What is MDT's market capitalization and position?

Medtronic Plc has a market capitalization of $119.05B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.28B shares outstanding, the company's ownership is widely distributed. As a major player in the ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS industry, it competes with other firms in this sector.

How does MDT's price compare to its book value?

Medtronic Plc's book value per share is $37.36, while the current stock price is $94.05, resulting in a price-to-book (P/B) ratio of 2.52. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$98.44

4.67% upside potential

Analyst Recommendations

Strong Buy

4

Buy

13

Hold

14

Sell

0

Strong Sell

1

How reliable are analyst predictions for MDT?

32 analysts cover MDT with 53% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $98.44 implies 4.7% upside, but targets are often adjusted to follow price moves rather than predict them.

What is the Wall Street consensus on MDT?

Current analyst recommendations:4 Strong Buy, 13 Buy, 14 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Sep 1, 2025, 05:36 AM

Earnings Dates

Recent Earnings History

Date	Quarter	Estimated EPS	Actual EPS	Surprise
Aug 19, 2025	Q3	$1.23	-	-
May 21, 2025	Q2	$1.58	$1.62	+2.5%
Feb 18, 2025	Q1	$1.36	$1.39	+2.2%
Nov 19, 2024	Q4	$1.25	$1.26	+0.8%
Aug 20, 2024	Q3	$1.20	$1.23	+2.5%
May 23, 2024	Q2	$1.45	$1.46	+0.7%
Feb 20, 2024	Q1	$1.26	$1.30	+3.2%
Nov 21, 2023	Q4	$1.18	$1.25	+5.9%

Technical Indicators

RSI (14-day)

62.39

Neutral

50-Day Moving Average

$85.41

10.12% above MA-50

200-Day Moving Average

$85.72

9.72% above MA-200

MACD Line

1.19

MACD Signal

1.02

MACD Histogram

0.17

Bullish

What does MDT's RSI value tell investors?

The RSI (Relative Strength Index) for MDT is currently 62.39, indicating the stock is showing bullish momentum (60-70 range). The stock has positive momentum without being extremely overbought. This zone often occurs during healthy uptrends where buyers remain in control. Combined with the price being above the 50-day moving average, this confirms bullish conditions.

How should traders interpret MDT's MACD and moving average crossovers?

MACD analysis shows the MACD line at 1.19 above the signal line at 1.02, with histogram at 0.17. This bullish crossover suggests upward momentum is building. The 50-day MA ($85.41) is below the 200-day MA ($85.72), forming a death cross pattern that often warns of extended weakness. Price is currently above both MAs, confirming strength.

Indicators last updated: Jul 16, 2025, 12:30 AM

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Medtronic (MDT) Stock Analysis 2025 - Healthcare Value Play

Medtronic stands as a healthcare colossus with $33.5 billion in annual revenue, trading at $90 near multi-year lows. The medical device leader offers a rare combination of 3% dividend yield and 47-year dividend growth streak.

Why Medtronic? Understanding the Investment Story

The Essential Healthcare Infrastructure

Medtronic is not just another medical device company; it is the backbone of modern healthcare, providing technologies that keep millions of hearts beating, diabetics healthy, and surgical procedures safe.

The company portfolio reads like a medical textbook: cardiac pacemakers, defibrillators, heart valves, insulin pumps, neurostimulators, surgical robotics, and hundreds more life-saving devices.

The Turnaround Taking Shape

After years of underperformance that saw the stock decline 40% while the market soared, Medtronic finally shows signs of operational improvement under CEO Geoff Martha restructuring plan.

Valuation: Deep Value or Value Trap?

At 13 times forward earnings, Medtronic trades at its cheapest valuation in over a decade, a stunning discount to the S&P 500 22x and medical device peers at 25x.

Opportunities for 2025 and Beyond

The Aging Demographics Tailwind

Medtronic sits perfectly positioned for the silver tsunami as 10,000 Americans turn 65 daily through 2030. This demographic shift is not a forecast; it is mathematical certainty.

Digital Surgery and Robotics Revolution

Medtronic Hugo surgical robot represents just the beginning of a digital surgery transformation that could reshape the $15 billion surgical robotics market.

Who Is This Stock For?

Perfect For

✓Value investors seeking turnaround stories
✓Income investors wanting reliable dividends
✓Healthcare bulls believing in demographics
✓Patient investors with 3-5 year horizons

Less Suitable For

✗Growth investors seeking rapid appreciation
✗Momentum traders following trends
✗Those worried about GLP-1 disruption
✗Investors needing quick returns

Investment Recommendation

Conclusion

Medtronic represents a classic contrarian opportunity - a quality company temporarily out of favor due to fixable problems. The core franchises remain strong, and the upcoming diabetes spin-off removes a major overhang. With demographics providing multi-decade tailwinds and the dividend offering compensation while you wait, Medtronic presents asymmetric risk-reward for patient value investors.

2025 Price Target

$100-105

Upside Potential

+11-17%

Risk Level

Moderate

Recommendation

Buy < $88