Medtronic Plc Intrinsic Value – MEDTRONIC PLC Reports First Quarter Earnings for FY2024
September 6, 2023
🌥️Earnings Overview
For the first quarter of FY2024 ending July 31 2023, MEDTRONIC PLC ($NYSE:MDT) reported total revenue of USD 7702.0 million, a 4.5% increase from the same period in the previous year. However, their net income decreased by 14.9%, amounting to USD 791.0 million.
Stock Price
The company opened at $82.6 and closed at $83.7, up by 2.6% from last closing price of 81.6. The announcement of their first quarter earnings for 2024 included a positive outlook regarding their future performance. The company reported increased revenue from their medical technology products, with their various medical device offerings doing particularly well.
Their new product launches also performed better than expected, with some of their products showing strong customer demand. Their impressive performance in the market has excited many investors, and with the continued development of their products and services, they will likely continue to have positive future performances. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Medtronic Plc. More…
| Total Revenues | Net Income | Net Margin |
| 31.56k | 3.62k | 12.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Medtronic Plc. More…
| Operations | Investing | Financing |
| 5.83k | -2.45k | -4.51k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Medtronic Plc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 90.78k | 39.41k | 38.47 |
Key Ratios Snapshot
Some of the financial key ratios for Medtronic Plc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.2% | 12.3% | 19.4% |
| FCF Margin | ROE | ROA |
| 14.1% | 7.5% | 4.2% |
Analysis – Medtronic Plc Intrinsic Value
GoodWhale has conducted an analysis of MEDTRONIC PLC‘s financials and concluded that the intrinsic value of MEDTRONIC PLC share is around $107.6. This number is derived from GoodWhale’s proprietary Valuation Line. Currently, the stock is trading at $83.7,representing a 22.2% discount to the intrinsic value. In other words, GoodWhale has identified MEDTRONIC PLC as an undervalued stock based on its financials. More…
Peers
With more than 85,000 employees worldwide, Medtronic offers a broad portfolio of products and services that are available in more than 155 countries. Medtronic’s competitors include Boston Scientific Corp, Apollo Endosurgery Inc, and Ion Beam Applications SA.
– Boston Scientific Corp ($NYSE:BSX)
Boston Scientific Corp is a leading medical device company with a market cap of 58.64B as of 2022. The company has a strong focus on innovation and has a return on equity of 5.95%. Boston Scientific Corp is a global leader in the development and manufacturing of medical devices for a range of conditions, including cardiovascular disease, cancer, and neurological disorders. The company’s products are used by physicians and patients around the world.
– Apollo Endosurgery Inc ($NASDAQ:APEN)
Apollo Endosurgery Inc is a medical device company that focuses on developing less invasive treatments for obesity, metabolic, and gastrointestinal disorders. The company has a market cap of 238.83M as of 2022 and a Return on Equity of -32.07%. Apollo’s products include the ORBERA Intragastric Balloon System, the LAP-BAND Adjustable Gastric Banding System, and the OverStitch Endoscopic Suturing System.
– Ion Beam Applications SA ($LTS:0GZK)
Ion Beam Applications (IBA) is a world leader in proton therapy, a type of cancer treatment that uses high-energy proton beams to kill cancer cells. IBA’s proton therapy solutions are used in over 80 hospitals worldwide, making it the largest provider of proton therapy systems in the world. IBA’s market cap is $413.64M as of 2022, and its ROE is 6.68%. The company’s proton therapy solutions are used to treat a wide range of cancers, including brain, breast, lung, and prostate cancer.
Summary
MEDTRONIC PLC reported their earnings results for the first quarter of FY2024, ending July 31 2023, showing an overall increase in total revenue of 4.5% to USD 7702.0 million and a decrease in net income of 14.9% to USD 791.0 million. Although total revenue went up, net income is down compared to the previous year. Investors should take note of this, as it could indicate a trend in weaker profit margins despite higher revenue.
Additionally, MEDTRONIC PLC’s financial metrics such as return on equity and free cash flow should be monitored to get a full understanding of their performance. Further research into the company’s industry competitiveness and outlook is recommended for investors to make an informed decision.
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