Medtronic PLC (NYSE:MDT)

Net cash provided by operating activities

The net cash provided by operating activities shows a fluctuating trend across the reported years. It started at 7,234 million in April 2020 and experienced a decline to 6,240 million in April 2021. This was followed by a rebound to 7,346 million in April 2022. However, the amount decreased again to 6,039 million in April 2023, before recovering to 6,787 million in April 2024 and further increasing to 7,044 million in April 2025. Overall, the data indicates volatility in operating cash flows, with no consistent upward or downward trend, although the most recent periods suggest a gradual recovery towards higher cash inflows.

Free cash flow to equity (FCFE)

Free cash flow to equity also exhibits variability over the timeline. Beginning at 5,462 million in April 2020, FCFE decreased to 4,315 million by April 2021, followed by a significant rise to 5,977 million in April 2022. The value then declined sharply to 3,982 million in April 2023, before experiencing a robust increase to 6,273 million in April 2024 and continuing to rise to 7,324 million in April 2025. The pattern here mirrors some of the fluctuations seen in operating cash flow but with more pronounced swings. This suggests that the company’s capacity to generate cash available to equity holders has been subject to considerable variations but ended with a strong upward trajectory in the latest years.

The financial data reveals several noteworthy trends over the analyzed periods.

Share Price

The share price initially increased significantly from $93.91 in April 2020 to a peak of $124.93 in April 2021. Following this peak, the share price declined steadily for the next three years, reaching a low of $80.17 in April 2024 before slightly recovering to $86.34 in April 2025. This pattern suggests heightened market volatility and possible external or company-specific factors impacting investor sentiment after the 2021 peak.

Free Cash Flow to Equity (FCFE) per Share

FCFE per share exhibited fluctuations during the period. Starting at $4.07 in April 2020, it decreased to $3.21 in April 2021, indicating reduced free cash flow available to equity holders. Subsequently, it showed a general upward trend with some volatility: a rise to $4.50 in April 2022, followed by a dip to $2.99 in April 2023. Afterward, it markedly increased in the last two periods, reaching $4.89 in April 2024 and $5.72 in April 2025. This indicates improving operational cash generation or financial management capabilities toward the latter years.

Price-to-FCFE (P/FCFE) Ratio

The P/FCFE ratio displayed significant variability, starting at 23.06 in April 2020. It rose sharply to 38.91 in April 2021, reflecting high price levels relative to cash flow per share at that time. The ratio then declined substantially to 19.71 in April 2022, indicating a more favorable valuation relative to cash flow. It increased again to 29.20 in April 2023, before steadily decreasing to 16.39 and 15.10 in April 2024 and April 2025, respectively. This downward trend in the latter years suggests that the stock became relatively cheaper compared to the cash flows generated, possibly indicating undervaluation or improved cash flows driving valuation adjustments.

Overall, the data indicates a period of initial market optimism followed by a correction in share price alongside fluctuating cash flow generation. The recent trends suggest improving cash flow performance and a more attractive valuation relative to FCFE, potentially reflecting a favorable outlook on future equity returns based on free cash flow metrics.