Medtronic PLC (NYSE:MDT)

Price to Earnings (P/E) Ratio

The P/E ratio data starts from a value of 26.3 and shows an initial upward trend, peaking at 55.13. After reaching this high point, there is a noticeable decline to 22.61, followed by a gradual increase fluctuating around the mid to high twenties. This pattern suggests an early period of increasing market expectations or earnings multiple, followed by a correction and stabilization within a narrower range.

Price to Operating Profit (P/OP) Ratio

This ratio follows a trend somewhat similar to P/E, with values rising sharply from 26.29 to a peak close to 49.88. Subsequently, there is a marked decline to approximately 19.55, after which the ratio fluctuates moderately between 17.99 and 22.1. The decrease after the peak implies a reduction in the valuation multiple relative to operating profit, possibly due to changes in profitability or market sentiment.

Price to Sales (P/S) Ratio

The P/S ratio shows an increasing trend in earlier periods, beginning around 4.36 and extending to about 5.74. Following this peak, the ratio declines steadily, stabilizing in the 3.3 to 3.7 range. This trend indicates that pricing relative to sales initially increased but has since contracted, suggesting adjustments in valuation against revenue performance.

Price to Book Value (P/BV) Ratio

The P/BV ratio exhibits moderate fluctuation with an initial increase from 2.87 to 3.52, followed by a significant decrease to the low 2.0s area. It then demonstrates a slight upward movement toward 2.38 before gently declining again. This behavior indicates relatively stable but varying investor perceptions of the company's net asset values over time.

Share Price Trend

The share price showed fluctuations over the observed periods. Initially, the price increased moderately from July 2019 through early 2021, reaching a peak of 134.73 US$ in July 2021. However, from this peak, a downward trend occurred until reaching a low range around 79.25 to 81.5 US$ between late 2022 and mid-2023. There was a rebound phase afterward, with prices rising again to the mid 80s to low 90s US$ range by early 2025, indicating some recovery but not a return to the earlier peak levels.

Earnings Per Share (EPS) Dynamics

EPS data begins from April 2020, showing an immediate peak at 3.57 US$, followed by a gradual decline to 2.15 US$ by July 2020 and then a recovery phase with fluctuations around the mid 3 US$ levels in following quarters. The EPS displayed slight undulations, with notable decreases between mid 2022 and the start of 2023, after which it generally showed gradual improvement through early 2025, reaching 3.64 US$, suggesting periodic profitability pressures countered by recovery efforts.

Price-to-Earnings (P/E) Ratio Behavior

The P/E ratio was unavailable initially but from April 2020 onwards, it started at a moderate 26.3 and increased sharply to over 55 by January 2021, indicating higher market valuation relative to earnings during that period. Post-peak, the ratio generally decreased, moving towards values in the mid-20s by early 2022 and remaining volatile around 23 to 30 through 2025. This pattern suggests shifts in market expectations and earnings volatility, with a tendency toward stabilization in later periods.

Overall Insights

The data indicates a period of volatility in share price and earnings, coinciding with fluctuations in market valuation as represented by the P/E ratio. The sharp movements in P/E early in the period may reflect market reactions to changes in earnings or broader economic conditions. The recovery in EPS and partial rebound in share price suggest resilience and potential adaptation to challenges experienced in earlier quarters. The stabilization of the P/E ratio in the latter periods points to a more balanced market perception relative to earnings performance.

The analysis of the financial metrics over the examined periods reveals varying trends in the company’s market valuation and profitability measures.

Share Price

The share price demonstrates significant fluctuations throughout the timeframe. Starting at a high of approximately 108 USD in mid-2019, it experienced a decline around early 2020, reaching a low near 94 USD. This was followed by a recovery phase, peaking at about 135 USD in mid-2021. Subsequently, another downtrend occurred until late 2022, where prices fell to approximately 79 USD. Early 2023 onwards, the share price shows a generally stable but modestly volatile pattern, ranging mostly in the 79 to 90 USD interval. This suggests episodes of market volatility and possible external influencing factors affecting investor sentiment.

Operating Profit per Share

Data availability begins from April 2020. Initially, operating profit per share starts at 3.57 USD and exhibits a generally upward trajectory over time. Despite some fluctuations, the metric increases gradually, reaching 4.65 USD by April 2025. This upward tendency indicates improvement in the company’s operational efficiency and profitability on a per-share basis over the analyzed period.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio starts at a relatively moderate level of about 26.29 in April 2020, then sharply increases to a peak near 49.88 in April 2021, suggesting that the share price was comparatively more expensive relative to operating profits at that point. Following this peak, the ratio steadily declines to values close to 18.58 by April 2025. The consistent reduction in this ratio over the latter periods indicates that either the share price decreased relative to operating profit or the operating profit grew faster than the share price, resulting in a more favorable valuation in terms of operating profitability.

Overall, while the share price shows periods of volatility with notable peaks and troughs, operating profit per share reflects consistent growth. The declining P/OP ratio in recent years may suggest an improving alignment between market valuations and operational earnings, potentially indicating better market pricing of the company’s profitability or enhanced profitability performance relative to market price.

Share Price Trend

The share price showed initial growth from July 2019, rising from $107.89 to a peak of $134.73 in July 2021. Subsequently, the price declined significantly to a low around $79.25 in October 2022. From this point, the price fluctuated within a range, mostly between approximately $79 and $90, through April 2025, without a clear sustained upward trend.

Sales Per Share Development

Sales per share data begins in July 2020 with a value of $21.56, slightly decreasing to around $20.7-$20.8 in the subsequent quarters. From early 2021 onwards, there is a gradual upward trajectory observed, reaching $26.17 by April 2025. This indicates a consistent improvement in sales revenue generated per share over the observed period.

Price to Sales (P/S) Ratio Movement

The P/S ratio peaked following the early sales per share values, rising from 4.36 in July 2020 to a high of 5.74 in October 2021, indicating elevated market valuation relative to sales at that time. However, after this peak, the ratio steadily declined to about 3.3 by April 2025. This suggests a market revaluation reducing price multiples relative to sales despite increasing sales per share.

Overall Observations

The data reveals that while the company experienced growth in sales efficiency on a per-share basis, the share price was subject to significant volatility, peaking mid-period and declining thereafter. Meanwhile, the declining P/S ratio in the latter periods implies that the market became more conservative or adjusted its expectations relative to sales growth. This divergence between rising sales per share and a falling valuation multiple results in relatively stable but unimproved share prices in later periods.

Share Price

The share price exhibited fluctuations over the analyzed periods with an overall downward tendency in recent years. Initially, the share price rose from approximately 108 USD in July 2019 to peak near 135 USD in July 2021. This increase was followed by a marked decline, reaching a low near 79 USD by October 2022 and again in October 2023. Subsequently, moderate recoveries were observed, with prices moving back above 85 USD in multiple subsequent quarters, although remaining below the earlier peak levels. These patterns indicate volatility with a generally weakening share price trend following mid-2021.

Book Value Per Share (BVPS)

BVPS showed relative stability throughout the periods under review, maintaining values generally between 37 and 39.6 USD per share. Minor fluctuations occurred, such as a slight increase peaking around 39.6 in mid-2022 followed by a gradual decrease afterward. No significant upward or downward trend is evident, suggesting that the book value per share remained fairly constant, reflecting steady underlying net asset values on a per-share basis.

Price to Book Value Ratio (P/BV)

The P/BV ratio mirrored the patterns observed in share price, with more pronounced changes compared to the relatively stable BVPS. Initially, the ratio hovered around 2.9 to 3.5, reaching its highest point near 3.52 in July 2021, coinciding with the share price peak. Subsequently, a considerable decline occurred, bringing the ratio down to close to 2.0 by late 2022 and into 2023, indicating a decrease in market valuation relative to book value. Minor rebounds took the ratio back above 2.3 in some recent quarters, but it has not returned to earlier higher levels. This suggests a revaluation of the company's market price relative to its book value, highlighting diminished market optimism or increased risk perception post-2021.