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Medtronic

MDT
58
Medical - Devices · Healthcare
Price
$83.20
-0.36 (-0.43%)
Market Cap
$106.50B
Winston Score
58
Winston is curious
A decent business — some strong pillars, some weaker.

Share count falling — buybacks

4.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.35B (2022) → 1.29B (2026)

Medtronic makes medical devices — tools and machines that doctors use to treat patients. Its products include pacemakers (devices that help hearts beat correctly), insulin pumps for diabetes patients, spinal implants, and surgical robots. Hospitals and doctors around the world are its main customers, making Medtronic one of the largest medical device companies on the planet.

Medtronic earns money by selling its devices and the supplies that go with them, like catheters and sensors that need regular replacement. It operates in over 150 countries, with roughly half its revenue coming from outside the United States. The company's size gives it an advantage — it has deep relationships with hospitals and a large sales force that smaller competitors struggle to match. The biggest challenge Medtronic faces is that several of its core markets, like cardiac devices, are mature and growing slowly, so the company is betting on newer areas like surgical robotics and diabetes technology to drive future growth.

Winston Score History

Politician Trades

23 trades / 12mo

10 Congressional buys and 13 sells on MDT in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-11.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$2.9B/ year

Rising (+5% vs prior year)

7.9% of revenue

Below sector average (18%)

R&D investment increasing — building for the future

Insider Activity

0.1%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$1.1B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Medtronic is growing revenue at 9% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
64.9%
Premium pricing power — 64.9% gross margin
Operating Margin
19.7%
Healthy — 19.7% operating margin
ROCE
2.3%
Weak — 2.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+4.6%
Slow sales growth (4.6% YoY)
EPS YoY
+15.5%
Earnings growing fast (15.5% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
180%
Turns 180% of profit into real cash
FCF Margin
19.7%
Converts sales into free cash efficiently (19.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.57
Conservative — low debt load (0.57)
Interest Cover
9.15x
Comfortably covers interest (9.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
22.0x
Growth-priced — P/E 22.0

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+10.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (22.0 → 11.7)

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Dividends

Dividend Yield
3.52%
Moderate income — 3.52% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+1.4%
Dividend flat

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