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Medtronic (MDT) Dividend Analyzer Analysis

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Medtronic Logo

Medtronic Dividend

(updated 10/13/2017)

The Medtronic dividend has been paid continuously since 1977 and increased for 39 consecutive years;
qualifying the company as a Dividend Aristocrat.

Price: $78.11
Current Dividend: $1.84

Dividend Yield: 2.4%
Cash Dividend Payout Ratio: 49%

Market Capitalization: 106 B
Enterprise Value: 127 B

Description

Sector: Healthcare
Industry: Medical Devices

Medtronic (MDT) is the largest medical technology company in the world with revenues in excess of $20 billion. The company offers therapies that treat nearly 70 conditions, including diabetes, obesity, cancer, and heart disease.

The company operates in four business groups: Cardiac and Vascular Group, Restorative Therapies Group, Minimally Invasive Therapies Group, and Diabetes Group.

From more information see: Company Overview

Dividend Analyzer Checklist

(updated September 2017)

Dividend Safety Score (23/33 points)

Dividend Per Share (ttm): $1.75
Dividend Payout Ratio (ttm): 59%
Cash Dividend Payout Ratio (ttm): 42%
Cash From Operations (CFO) Per Share (ttm): $4.95
CFO Dividend Coverage (CFO / DPS): 2.8 (3/6 points)
Free Cash Flow (FCF) Per Share (ttm): $4.04
FCF Dividend Coverage (FCF / DPS): 2.3 (4/6 points)
Net Financial Debt: $19728 M
Total Assets: $99816 M
Net Financial Debt / Total Assets: 20% (8/12 points)
Net Financial Debt to EBITDA (ttm): 374%
Total Liabilities to Assets Ratio (Qtr.): 50%
Piotroski Score (1-9) (TTM): (8/9 points)

Profitability & Growth Score (16/33 points)

Revenue (10 Year Growth) *CAGR > 4.14%: 9.2% (4/4 points)
EPS Basic Cont. Operations (10 Year Growth) CAGR > 4.14%: 1.8% (0/4 points)
Cash From Operations (10 Year Growth) CAGR > 4.14%: 8.7% (6/6 points)
Operating Earnings Yield (ttm): 5.0% (2/7 points)
Net Income (ttm): $4028 M
Gross Profit (ttm): $20419 M
Total Assets: $99816 M
Gross Profitability Ratio = GP / Total Assets: 20% (4/12 points)
Cash Return On Invested Capital (CROIC)(tttm): 7%
Return on Invested Capital (ROIC): 5%
Return on Invested Capital (ROIC) (5 Year Median): 9%
Return on Invested Capital (ROIC) (10 Year Median): 12%

Valuation Score (9/34 points)

Free Cash Flow Yield (ttm): 4.4% (5/9 points)
EV to EBIT (ttm): 21.9 (0/9 points)
EV to EBITDA (ttm): 14.8  (3/9 points)
PE10: 31.4  (1/7 points)
Price to Sales Ratio (ttm): 4.0
Price to Book Value (ttm): 2.3
Price to Earnings Ratio (P/E) (ttm): 29.2

TOTAL POINTS – (48/100) (50 is an average score)

*Compound Annual Growth Rate (CAGR)
**A Compound Annual Growth Rate of 4.14% = a 50% gain over 10 years.

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Conclusion

(updated September 2017)

Medtronic is ranked #159 (out of 342) overall and #17 (out of 25) in the Healthcare Sector by the Dividend Analyzer.

MDT is an important and prestigious company in the healthcare industry. However, it’s just an average investment because the stock is expensive.

Medtronic Logo

Portfolio Position Disclosures:
DVB Foundation Portfolio: None
DVB Dividend Growth: None
DVB High Income: None
Arbor Asset Allocation Model Portfolio (AAAMP): None

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Disclaimer: While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.
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