Does Medtronic Make Enough Profit?

Medtronic dropped -5.2% during today's afternoon session, underperforming the S&P 500 by -6.5%. The lackluster performance from the large-cap Medical Devices company may seem like an opportunity to buy shares at a discount, but it's a good idea to take a closer look at the company's cash flows first.

Date Reported Cash Flow from Operations ($) Capital expenditures ($) Free Cash Flow ($) YoY Growth (%)
2022-04-29 7,346,000,000.0 -1,368,000,000.0 5,978,000,000.0 22.37
2021-04-30 6,240,000,000.0 -1,355,000,000.0 4,885,000,000.0 -18.87
2020-04-24 7,234,000,000.0 -1,213,000,000.0 6,021,000,000.0 2.52
2019-04-26 7,007,000,000.0 -1,134,000,000.0 5,873,000,000.0 n/a

The coefficient of variability of Medtronic's free cash flow is 9.5% and the average growth rate is 2.0. These metrics tell us that company's cash flows are strong and steady, which likely means that the company's management is effective in converting its profits into cash. Value minded investors may see today's dip as a welcome discount on MDT

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.