STJ  St. Jude Medical Inc.

Exchange

NYSE

Sector

Health Care

Industry

Biotechnology: Electromedical & Electrotherapeutic Apparatus

Market Cap.

23.09B

Vuru Grade

63.43/100

Current Price

$80.82
+0.13 (+0.16%)

Growth Price

$42.65
Overvalued by 47.23%

Stability Price

$7.52
Overvalued by 90.70%

Company Metrics

  • P/E 35.43
  • P/S 3.87
  • P/B 5.14
  • EPS 2.28
  • Cash ROIC 13.51%
  • Cash Ratio 0.27
  • Dividend 1.24 / 1.54 %
  • Avg. Vol. 2.63M
  • Shares 285.70M
  • Market Cap. 23.09B

Company Description

St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in four segments: Cardiac Rhythm Management, Cardiovascular, Atrial Fibrillation, and Neuromodulation. The Cardiac Rhythm Management segment offers products for cardiac arrhythmias, or irregular heart beats. Its products include tachycardia implantab... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Head-To-Head Analysis: RTI Surgical (NASDAQ:RTIX) vs. St Jude Medical (STJ)
TrueBlueTribune - Aug 20, 2017
St. Jude Medical, Inc. is focused on the development, manufacture and distribution of cardiovascular medical devices for the global cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas, and interventional pain therapy and ...
Abbott Labs gets FDA approval for MRI-friendly defibrillator
Minneapolis Star Tribune - 15 hours ago
Glen Stubbe, Star Tribune This Wednesday, July 22, 2015, photo shows St. Jude Medical corporate headquarters, in Little Canada, Minn.
Wireless Pulmonary Artery Sensor Safely Reduces Heart Failure Hospitalizations
The Cardiology Advisor (registration) - 18 hours ago
There were 28 reports of PA injury/hemoptysis including 14 intensive care unit stays, 7 intubations, and 6 deaths. Image provided courtesy of St. Jude Medical, Inc. Healthday News - Postmarketing adverse events related to the CardioMEMS HF System are ...
Financial Contrast: St Jude Medical (STJ) versus Second Sight Medical Products ...
The Ledger Gazette - Sep 13, 2017
St. Jude Medical, Inc. is focused on the development, manufacture and distribution of cardiovascular medical devices for the global cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas, and interventional pain therapy and ...
RTI Surgical (RTIX) vs. St Jude Medical (NYSE:STJ) Critical Comparison
The Ledger Gazette - Sep 17, 2017
St. Jude Medical, Inc. is focused on the development, manufacture and distribution of cardiovascular medical devices for the global cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas, and interventional pain therapy and ...
Vascular Imaging Market Projected to Grow at a CAGR of 6.5% from 2017 to 2022
Medgadget (blog) - 8 hours ago
(Japan), St. Jude Medical, Inc. (U.S.), TERUMO Corporation (Japan), Koninklijke Philips N.V. (Netherlands), Fujifilm SonoSite (Japan), Hologic, Inc. (U.
RTI Surgical (RTIX) versus St Jude Medical (NYSE:STJ) Financial Survey
Dispatch Tribunal - Sep 24, 2017
4.8% of St Jude Medical shares are owned by insiders. Comparatively, 4.9% of RTI Surgical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised ...
Head-To-Head Survey: St Jude Medical (STJ) vs. Smith & Nephew SNATS (SNN)
The Ledger Gazette - Sep 7, 2017
St. Jude Medical, Inc. is focused on the development, manufacture and distribution of cardiovascular medical devices for the global cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas, and interventional pain therapy and ...
St Jude Medical (STJ) & RTI Surgical (RTIX) Financial Comparison
Dispatch Tribunal - Aug 31, 2017
4.8% of St Jude Medical shares are owned by insiders. Comparatively, 4.9% of RTI Surgical shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised ...
Head to Head Review: RTI Surgical (RTIX) & St Jude Medical (STJ)
The Ledger Gazette - Sep 10, 2017
Comparatively, 82.7% of St Jude Medical shares are held by institutional investors. 4.9% of RTI Surgical shares are held by company insiders. Comparatively, 4.8% of St Jude Medical shares are held by company insiders. Strong institutional ownership is ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for STJ to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate STJ's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$80.82 Current Price

$42.65 Growth Price (DCF)

Overvalued by 47.23%


Growth Rate Assumed by Market: 30.19%


Future Free Cash Flow Growth Rate: 9.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$7.52 Stability Price (EPV)

Overvalued by 90.70%


Discount Rate: 15.0%

$59.10 Book Price

Overvalued by 26.87%


Satisfactory Cash Return on Invested Capital over the past 5 years

STJ has somewhat efficiently invested its financial resources in buildings, projects, and equipment. If CROIC is inconsistent, it's likely STJ could be benefiting from a one-time event or has a mixed history of investing capital productively. Read the company's Annual Report to determine whether this can improve.

STJ has created $13.51 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 980.35M 1.06B 739.00M 1.11B 853.00M
divided by
Invested Capital 6.96B 6.30B 7.50B 6.10B 9.92B
Cash ROIC 14.09% 16.74% 9.86% 18.27% 8.60%

Excellent Return on Equity over the past 5 years

Over the past 5 years, STJ has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

STJ has generated $19.47 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 825.79M 752.00M 692.00M 955.00M 866.00M
divided by
Stockholders' Equity 4.47B 4.09B 4.23B 4.20B 4.04B
Return on Equity 18.46% 18.37% 16.36% 22.74% 21.43%

Excellent Business Performance over the past 10 years

STJ has been able to maintain profitability in good times and bad. This could mean STJ has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

STJ has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 380.92M 578.41M 601.68M 542.47M 969.47M 980.35M 1.06B 739.00M 1.11B 853.00M

Weak Balance Sheet

STJ's financial position is not ideal. The key is to check whether STJ is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 79.89M 389.09M 136.44M 392.93M 500.34M 985.81M 1.19B 1.37B 1.44B 667.00M
Current Assets 1.69B 2.13B 2.08B 2.56B 2.91B 3.39B 3.55B 3.91B 3.91B 3.27B
Total Assets 4.79B 5.33B 5.72B 6.43B 8.57B 9.01B 9.27B 10.25B 10.21B 13.06B
Current Liabilities 676.21M 1.85B 1.03B 1.07B 1.02B 1.06B 1.78B 1.38B 2.67B 2.47B
Total Liabilities 1.82B 2.40B 2.49B 3.10B 4.19B 4.53B 5.18B 6.02B 6.01B 9.02B
Stockholder' Equity 2.97B 2.93B 3.24B 3.32B 4.37B 4.47B 4.09B 4.23B 4.20B 4.04B
Current Ratio 2.50 1.15 2.02 2.40 2.86 3.19 2.00 2.83 1.47 1.32
TL-to-TA 0.38 0.45 0.43 0.48 0.49 0.50 0.56 0.59 0.59 0.69

Consistent Reinvestment of Profits over the past 10 years

STJ has consistently retained profits. This may put STJ in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, STJ can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 2.79B 2.60B 2.98B 3.19B 4.10B 4.38B 4.02B 3.94B 4.23B 4.21B
Retained Earnings Growth - -6.68% 14.48% 7.17% 28.44% 6.96% -8.35% -2.04% 7.34% -0.33%

Potential Competitive Advantage over the past 10 years

STJ potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

$14.80 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 548.25M 559.04M 384.33M 777.23M 907.44M 825.79M 752.00M 692.00M 955.00M 866.00M
divided by
Revenue 3.30B 3.78B 4.36B 4.68B 5.16B 5.61B 5.50B 5.50B 5.62B 5.54B
Net Profit Margin 16.60% 14.79% 8.81% 16.60% 17.57% 14.72% 13.67% 12.58% 16.99% 15.63%

Strong Pricing Power over the past 10 years

STJ has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$71.91 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 2.39B 2.74B 3.19B 3.43B 3.75B 4.08B 3.97B 3.93B 3.97B 3.80B
divided by
Revenue 3.30B 3.78B 4.36B 4.68B 5.16B 5.61B 5.50B 5.50B 5.62B 5.54B
Gross Margin 72.34% 72.44% 73.17% 73.23% 72.70% 72.70% 72.05% 71.39% 70.60% 68.51%

Medium Capital Intensity over the past 10 years

STJ has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

41.31% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 267.90M 287.16M 343.91M 326.41M 304.90M 306.49M 280.00M 222.00M 190.00M 186.00M
divided by
Net Income 548.25M 559.04M 384.33M 777.23M 907.44M 825.79M 752.00M 692.00M 955.00M 866.00M
Capital Expenditure Ratio 48.86% 51.37% 89.48% 42.00% 33.60% 37.12% 37.23% 32.08% 19.90% 21.48%

No Dividend History over the past 10 years

STJ has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 372.83M 352.44M 349.72M 344.36M 330.49M 327.09M 314.80M 290.60M 289.70M 286.30M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 35.83 40.25 31.76 36.29 42.00 34.30 35.47 61.94 66.20 62.22
Dividend Yield - - - - - - - - - -

Strong History of Stock Buybacks over the past 10 years

STJ has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 372.83M 352.44M 349.72M 344.36M 330.49M 327.09M 314.80M 290.60M 289.70M 286.30M
Stock Bought Back - 5.78% 0.78% 1.56% 4.20% 1.04% 3.91% 8.33% 0.31% 1.19%
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