Money and Finance
Like my Coca-Cola stock analysis I was surprised when I looked back through my stock analysis archives that I had never posted about Medtronic (MDT). I had actually gone through the full analysis back in June of this year but couldn't find my post so I"m assuming I ended up getting busy with last minute wedding stuff. Medtronic is another one of the companies that I would love to own a piece of but the price just hasn't been there when my capital was available. Medtronic closed trading on Monday, December 10th at $42.60.
Company Background:
Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. It provides products for the diagnosis, treatment, and management of heart rhythm disorders and heart failure, including implantable cardiac pacemakers, implantable cardioverter defibrillators, cardiac resynchronization therapy devices, arctic front cardiac cryoablation catheters, arctic front cardiac cryoablation catheters, and patient management tools. The company also offers cardio vascular products, such as percutaneous coronary intervention device, which is used for the treatment of patients with coronary artery disease; renal denervation for the treatment of chronic uncontrolled hypertension; endovascular stent grafts to treat abdomen and thoracic regions of the aorta; peripheral vascular intervention that encompasses various procedures to treat patients with peripheral vascular disease; surgical valve replacement and repair products for damaged or diseased heart valves; transcatheter heart valves; a line of blood-handling products used in arrested heart surgeries; positioning and stabilization technologies that assist physicians performing beating heart surgery; and surgical ablation system, which allows cardiac surgeons to create ablation lines during cardiac surgery. In addition, it provides medical devices and implants that are used in the treatment of the spine and musculoskeletal system comprising thoracolumbar, cervical, and biologics products; neurostimulators for chronic pain, implantable drug delivery systems, and deep brain stimulation systems, as well as urology, fecal, and gastroenterology devices; and integrated diabetes management solutions. Further, the company offers products and therapies to treat diseases and conditions of the ear, nose, and throat, as well as certain neurological disorders; and image-guided surgery and intra-operative imaging systems.
DCF Valuation:
Analysts expect Medtronic to grow earnings 5.21% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, right around the long term inflation rate. Running these numbers through a two stage DCF analysis with a 10% discount rate yields a fair value price of $59.83. This means that at $42.60 the shares are undervalued by 28.8%.
Read more »
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Money and Finance
Medtronic Stock Analysis
Like my Coca-Cola stock analysis I was surprised when I looked back through my stock analysis archives that I had never posted about Medtronic (MDT). I had actually gone through the full analysis back in June of this year but couldn't find my post so I"m assuming I ended up getting busy with last minute wedding stuff. Medtronic is another one of the companies that I would love to own a piece of but the price just hasn't been there when my capital was available. Medtronic closed trading on Monday, December 10th at $42.60.
Company Background:
Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. It provides products for the diagnosis, treatment, and management of heart rhythm disorders and heart failure, including implantable cardiac pacemakers, implantable cardioverter defibrillators, cardiac resynchronization therapy devices, arctic front cardiac cryoablation catheters, arctic front cardiac cryoablation catheters, and patient management tools. The company also offers cardio vascular products, such as percutaneous coronary intervention device, which is used for the treatment of patients with coronary artery disease; renal denervation for the treatment of chronic uncontrolled hypertension; endovascular stent grafts to treat abdomen and thoracic regions of the aorta; peripheral vascular intervention that encompasses various procedures to treat patients with peripheral vascular disease; surgical valve replacement and repair products for damaged or diseased heart valves; transcatheter heart valves; a line of blood-handling products used in arrested heart surgeries; positioning and stabilization technologies that assist physicians performing beating heart surgery; and surgical ablation system, which allows cardiac surgeons to create ablation lines during cardiac surgery. In addition, it provides medical devices and implants that are used in the treatment of the spine and musculoskeletal system comprising thoracolumbar, cervical, and biologics products; neurostimulators for chronic pain, implantable drug delivery systems, and deep brain stimulation systems, as well as urology, fecal, and gastroenterology devices; and integrated diabetes management solutions. Further, the company offers products and therapies to treat diseases and conditions of the ear, nose, and throat, as well as certain neurological disorders; and image-guided surgery and intra-operative imaging systems.
DCF Valuation:
Analysts expect Medtronic to grow earnings 5.21% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, right around the long term inflation rate. Running these numbers through a two stage DCF analysis with a 10% discount rate yields a fair value price of $59.83. This means that at $42.60 the shares are undervalued by 28.8%.
Read more »
- Stryker (syk) Dividend Stock Analysis
I really want to get more exposure to the healthcare industry as I currently only have Medtronic in my FI Portfolio. Late last month I looked at Baxter International (BAX) and really liked what I saw, but unfortunately I had no free capital so I couldn't...
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If you take a look at my portfolio I'm lacking in two major areas that I'd like to get more exposure too. One is the food industry, I only have KO and MCD that are direct plays on food and the other is healthcare. The demographics both in...
- 3m Stock Analysis
It's time for another stock analysis report and this time I'll look at another dividend champion, 3M (MMM). 3M closed trading on Friday, January 11th at $96.28. Company Background: 3M Company operates as a diversified technology company worldwide....
- Becton Dickinson Stock Analysis
Since I'm really lacking on health care industry exposure it was time to start looking at some of the different companies, so today we'll look at Becton Dickinson and Company. Becton Dickinson closed trading on Monday, November 5th at $76.59....
- Walgreen's Stock Analysis
I've been meaning to post some more stock analysis' so today we'll look at one of my recent buy's, Walgreen's. On Friday, November 2nd, Walgreen's closed at $34.88. Company Background: Walgreen Co., together with its subsidiaries,...