Medtronic: Upgrading To Buy


  • Medtronic struggled to fill orders over the past year due to supply issues.
  • As a result, the enterprise value of the company is near five-year lows.
  • Even with supply constraints, Medtronic returned significant amounts of cash last year and is positioned to do so this year.
  • Based on the low valuation, high cash flow, and asymmetric risk-return profile, Medtronic is a Buy.

Team of surgeons performing surgery

South_agency/E+ via Getty Images

In my previous article on Medtronic (NYSE:MDT), I wrote the following:

Management revised FY 2022 revenue guidance to between $32.2B and $32.6B in the Q2 Earnings Presentation. This means revenue would have to average $8.183B over the next two quarters

Total Revenue

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Operating Income

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Enterprise Value

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Total Return Scenarios


Total Return Forecast


Total Return Statistics


Disclosure: I/we have a beneficial long position in the shares of MDT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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