MEDTRONIC

Analysis of Medtronic share price

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If you plan to buy Medtronic shares online in the near future using a trading platform then before starting to prepare your analyses on this asset we recommend you read this detailed article with advice and information that will be useful to you. You will notably find details relating to this company, its activities, a historical analysis of its share price and its real time share price.

Latest news

Medtronic raises the low end of its 2021/22 earnings guidance

02/09/2021 - 09h10

Medtronic Group has raised its profit forecast for the full fiscal year 2021/22. This follows a strong performance in the first quarter

Elements that can influence the price of this asset:

Analysis N°1

We would particularly follow the launch of new products that enable Medtronic to position itself in new markets.

Analysis N°2

Any merger or acquisition operations are of course also extremely significant as they would enable the group to gain a strategic advantage against its major competitors.

Analysis N°3

We would also carefully monitor any investments made by Medtronic in the area of research and development relating to the improvement of its technologies and capabilities.

Analysis N°4

The fact that Medtronic primarily exercises its activities on the more mature markets means that it would also be prudent to monitor the efforts made that enable an expansion of this group on an international level, notably in the emerging markets.

Analysis N°5

The political risk is also an element that should be carefully considered relating to the future of Medtronic. Governmental interventions and regulations can impact the profitability of this company and should therefore be carefully monitored.

Analysis N°6

Finally, we would also carefully monitor the foreign exchange market as movements in the exchange rates will have a direct impact on this company’s profitability relating to sales and exports as well as production costs.

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General presentation of Medtronic

The Medtronic Group is one of the largest designers, manufacturers and sellers of medical equipment and devices worldwide. It notably provides cardiac pacemakers, vascular treatment devices, items for spinal problems and neurological problems as well as the management of diabetes and cardiac surgery.

Medtronic achieves the largest part of its turnover in the United States but it is also present in Europe, Canada, Pacific Asia and other areas around the world.

To understand the range of challenges that affect the Medtronic Company and its position in the medical appliances sector, we now offer you the opportunity to learn about the items produced by this group, those that are the most popular and those that create the highest turnover for this company:

  • Cardiac stimulators or pacemakers with over 3 million devices sold up to now.
  • Cardiac defibrillators.
  • Stents, also used in cardiac surgery.
  • Heart valves.
  • Neuronal stimulators notably used for the detection and treatment of neurodegenerative illnesses.
  • Spinal disc replacement prostheses generally used worldwide.
  • Glucometers used to measure the amount of sugar in the blood, notably for patients diagnosed with diabetes.
  • Automatic injectors mainly used in hospital environments.
  • Coronary and vascular prostheses, also called stents even though the shape is slightly different.
Analysis of Medtronic share price
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The major competitors of Medtronic

We now propose that you discover a little more detail regarding the economic environment and more specifically, the sectoral environment of Medtronic. We will present the main competitors of this company in its sector of activity.

Koninklijke Philips 

First of all, Philips is a Dutch technology company that competes directly with Medtronic and is one of the largest groups in the household appliances, medical equipment and lighting sector. Currently, the group employs 114,000 people in about 100 countries and is organised into three business areas with healthcare, lighting and home.

Honeywell International Inc 

This other American company was founded in 1906 and used to specialise solely in heating. Today it is active in the nuclear, aerospace, building automation and defence sectors. For some time now, the group has also been an important supplier to the automotive sector and in the purchase of turbochargers.

Johnson & Johnson 

This US pharmaceutical company was founded in 1886 and specialises in the manufacture of pharmaceutical and medical devices, personal care products, cosmetics and related services for consumers and health care professionals. It is headquartered in New Brunswick, New Jersey, and owns and operates nearly 250 subsidiaries in approximately 60 countries around the world. The group also markets its products in 175 countries around the world. It is a constituent of the Dow Jones Industrial Average and a Fortune 500 company. The group also owns several leading brands of medicines and first aid supplies.

Becton Dickinson and Company 

Another direct competitor of Medtronic is Becton Dickinson, an American company specialising in the production and sale of medical equipment. It was founded in 1897 and is based in New Jersey. The company operates in about 50 countries and has more than 70,000 employees. It earns most of its profits abroad and its customers include hospitals, laboratories and researchers. Becton Dickinson was also one of the first companies to sell syringes in the United States. It is also a pioneer in the production of hypodermic needles. The company operates in three divisions


The major partners of Medtronic

To conclude, here are the current major partners of Medtronic with details on the agreements implemented by this group.

IBM

In 2015, the IBM Group created a platform entitled Watson Health for the centralisation of health data from Apple terminals and from its partners such as Medtronic and Johnson & Johnson.

Medtech

In 2016, Medtech, which created a revolutionary imaging system, signed an agreement with Medtronic aimed at using the sales strengths of the latter for marketing this French firm’s device, notably on the Japanese market.

Groupe Roche

In 2017, the Roche Group also implemented a partnership with Medtronic with the objective of developing a glycaemia indicator that functioned with bluetooth and was connected to an insulin pump system from Medtronic.

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The factors in favour of a rise in the Medtronic share price:

To effectively analyse the Medtronic share price you will need to understand the way in which investors see this asset.  For this the ideal way is to compare the strengths and weaknesses of this company. Let us begin by examining its major advantages.

Firstly, the activity sector in which Medtronic exercises its activities is clearly one of the sectors that has experienced rapid success. This achievement coupled with the fact that the competition is fairly weak in this sector means we can expect to see this group’s income increase in the future.

Also, the Medtronic Company benefits from a strong brand name that is renowned among its clients and prospects around the world. This brand image has been built upon the ability of Medtronic to use technology and effectively benefit from its creativity from its beginning through to now. The Medtronic brand is therefore often associated with the idea of innovation and technological advances.

Another strong point of this company we can mention is the fact that its supply chain is particularly solid and reliable with loyal regular partners. In this way Medtronic is able to effectively respond to demand even if this should experience a significant increase.

Finally, the financial stability of this group is also one of its strong points most appreciated by the traders and analysts particularly due to the fact that this company is capable of achieving savings through its large volume production capabilities which significantly reduce costs.

The factors in favour of a drop in the Medtronic share price:

Of course, before taking position on the rise on the Medtronic share price you should also evaluate the weak points of this company and take them into account when completing your analyses. Here therefore are details of the major disadvantages and weak points of this company:

  • Firstly, although the financial situation of this group is relatively positive we note a certain instability in its performance over the years that makes it difficult to anticipate future profits.
  • We also note some difficulties encountered by Medtronic in the past with certain partners that could reoccur with negative consequences for its growth and profitability.
  • To conclude, purely relating to the financial data of this group we also notice the overall disappointing results relating to the gross margin, the operating margin and the net margin compared to other industries in the same sector of activity, despite the advances made with cost reduction.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What products does Medtronic currently offer?

The Medtronic Group currently markets several product lines including pacemakers, defibrillators, stents, heart valves, neural stimulators, spinal disc replacements, insulin pumps, automated injectors and vascular and coronary prostheses. It is of course likely to develop new types of products in the coming years.

What are the main subsidiaries that the Medtronic Group currently operates?

The Medtronic group operates through a number of subsidiaries located around the world and dealing with different areas with Covidien, Medtronic Ireland, Medtronic Switzerland, Medtronic Italy, Medtronic Germany, Medtronic Isreael, Medtronic Netherlands, Medtronic Spain, Medtronic United Kingdom, Medtronic Canada, Medtronic France and Medtronic Luxembourg. The group's acquisition strategy could also lead it to buy new companies in the future.

How can I find out about future Medtronic share price movements?

If you want to know the future price movements of the Medtronic share on the stock market, we recommend you first of all to carry out relevant analyses of this value. Among the methods to be used are technical analysis, which is based on the study of historical stock market charts, and fundamental analysis, which uses the most influential publications and events in this sector.

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