STRYKER CORP (SYK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYK - US8636671013 - Common Stock
353.6 USD
-10.42 (-2.86%)
354.37 USD
+0.77 (+0.22%)
Overall SYK gets a fundamental rating of 6 out of 10. We evaluated SYK against 187 industry peers in the Health Care Equipment & Supplies industry. While SYK has a great profitability rating, there are some minor concerns on its financial health. SYK is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
SYK had positive earnings in the past year.
SYK had a positive operating cash flow in the past year.
In the past 5 years SYK has always been profitable.
Each year in the past 5 years SYK had a positive operating cash flow.
1.2 Ratios
SYK has a Return On Assets of 6.25%. This is amongst the best in the industry. SYK outperforms 84.49% of its industry peers.
The Return On Equity of SYK (13.51%) is better than 89.84% of its industry peers.
SYK has a Return On Invested Capital of 11.70%. This is amongst the best in the industry. SYK outperforms 91.98% of its industry peers.
SYK had an Average Return On Invested Capital over the past 3 years of 11.52%. This is above the industry average of 8.81%.
The 3 year average ROIC (11.52%) for SYK is below the current ROIC(11.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.25% | ||
| ROE | 13.51% | ||
| ROIC | 11.7% |
ROA(3y)7.1%
ROA(5y)6.34%
ROE(3y)15.24%
ROE(5y)14.27%
ROIC(3y)11.52%
ROIC(5y)10.61%
1.3 Margins
The Profit Margin of SYK (12.07%) is better than 87.70% of its industry peers.
In the last couple of years the Profit Margin of SYK has remained more or less at the same level.
With an excellent Operating Margin value of 22.14%, SYK belongs to the best of the industry, outperforming 93.58% of the companies in the same industry.
SYK's Operating Margin has been stable in the last couple of years.
SYK's Gross Margin of 64.59% is fine compared to the rest of the industry. SYK outperforms 66.84% of its industry peers.
In the last couple of years the Gross Margin of SYK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.14% | ||
| PM (TTM) | 12.07% | ||
| GM | 64.59% |
OM growth 3Y2.95%
OM growth 5Y0.05%
PM growth 3Y4.36%
PM growth 5Y-1.09%
GM growth 3Y-0.02%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SYK is creating some value.
SYK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SYK has more shares outstanding
SYK has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of SYK is 3.64, which is a good value as it means it would take SYK, 3.64 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.64, SYK belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
SYK has a Debt/Equity ratio of 0.68. This is a neutral value indicating SYK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, SYK is doing worse than 65.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.85 indicates that SYK should not have too much problems paying its short term obligations.
SYK's Current ratio of 1.85 is on the low side compared to the rest of the industry. SYK is outperformed by 66.31% of its industry peers.
SYK has a Quick Ratio of 1.13. This is a normal value and indicates that SYK is financially healthy and should not expect problems in meeting its short term obligations.
SYK has a Quick ratio of 1.13. This is in the lower half of the industry: SYK underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.14% over the past year.
SYK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.09% yearly.
SYK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.95%.
SYK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.71% yearly.
EPS 1Y (TTM)13.14%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%11.15%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.25%
3.2 Future
Based on estimates for the next years, SYK will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.88% on average per year.
Based on estimates for the next years, SYK will show a quite strong growth in Revenue. The Revenue will grow by 8.42% on average per year.
EPS Next Y12.32%
EPS Next 2Y11.41%
EPS Next 3Y11.57%
EPS Next 5Y9.88%
Revenue Next Year10.93%
Revenue Next 2Y9.75%
Revenue Next 3Y9.32%
Revenue Next 5Y8.42%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.85, which means the current valuation is very expensive for SYK.
Based on the Price/Earnings ratio, SYK is valued a bit cheaper than 74.87% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, SYK is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.37, the valuation of SYK can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than the industry average as 75.94% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, SYK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 23.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYK indicates a somewhat cheap valuation: SYK is cheaper than 73.80% of the companies listed in the same industry.
78.61% of the companies in the same industry are more expensive than SYK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.2 | ||
| EV/EBITDA | 22.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SYK does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SYK may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)3.32
EPS Next 2Y11.41%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, SYK is not a good candidate for dividend investing.
SYK's Dividend Yield is rather good when compared to the industry average which is at 1.74. SYK pays more dividend than 92.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
On average, the dividend of SYK grows each year by 9.03%, which is quite nice.
SYK has been paying a dividend for at least 10 years, so it has a reliable track record.
SYK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.03%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
SYK pays out 43.09% of its income as dividend. This is a bit on the high side, but may be sustainable.
SYK's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP43.09%
EPS Next 2Y11.41%
EPS Next 3Y11.57%
353.6
-10.42 (-2.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.75%
Inst Owner Change-1.06%
Ins Owners0.11%
Ins Owner Change0.2%
Market Cap135.22B
Revenue(TTM)24.38B
Net Income(TTM)2.94B
Analysts80.56
Price Target438.19 (23.92%)
Short Float %1.19%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend3.2
Dividend Growth(5Y)9.03%
DP43.09%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.92%
Min EPS beat(2)0.82%
Max EPS beat(2)1.01%
EPS beat(4)4
Avg EPS beat(4)2.14%
Min EPS beat(4)0.82%
Max EPS beat(4)4.19%
EPS beat(8)7
Avg EPS beat(8)2.59%
EPS beat(12)11
Avg EPS beat(12)3.09%
EPS beat(16)12
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)0.53%
Revenue beat(4)3
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)1.82%
Revenue beat(8)6
Avg Revenue beat(8)0.85%
Revenue beat(12)9
Avg Revenue beat(12)1.4%
Revenue beat(16)11
Avg Revenue beat(16)0.98%
PT rev (1m)-0.3%
PT rev (3m)-0.97%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)1.03%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 23.37 | ||
| P/S | 5.55 | ||
| P/FCF | 33.2 | ||
| P/OCF | 27.99 | ||
| P/B | 6.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.42 |
EPS(TTM)13.17
EY3.72%
EPS(NY)15.13
Fwd EY4.28%
FCF(TTM)10.65
FCFY3.01%
OCF(TTM)12.64
OCFY3.57%
SpS63.75
BVpS56.97
TBVpS-8.67
PEG (NY)2.18
PEG (5Y)3.32
Graham Number129.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.25% | ||
| ROE | 13.51% | ||
| ROCE | 13.62% | ||
| ROIC | 11.7% | ||
| ROICexc | 12.78% | ||
| ROICexgc | 41.43% | ||
| OM | 22.14% | ||
| PM (TTM) | 12.07% | ||
| GM | 64.59% | ||
| FCFM | 16.71% |
ROA(3y)7.1%
ROA(5y)6.34%
ROE(3y)15.24%
ROE(5y)14.27%
ROIC(3y)11.52%
ROIC(5y)10.61%
ROICexc(3y)12.76%
ROICexc(5y)11.78%
ROICexgc(3y)39.46%
ROICexgc(5y)36.43%
ROCE(3y)13.4%
ROCE(5y)12.35%
ROICexgc growth 3Y8.12%
ROICexgc growth 5Y2.91%
ROICexc growth 3Y8.12%
ROICexc growth 5Y1.03%
OM growth 3Y2.95%
OM growth 5Y0.05%
PM growth 3Y4.36%
PM growth 5Y-1.09%
GM growth 3Y-0.02%
GM growth 5Y-0.35%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 66.52% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.88% | ||
| Profit Quality | 138.4% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | N/A |
F-Score5
WACC8.22%
ROIC/WACC1.42
Cap/Depr(3y)62.25%
Cap/Depr(5y)59.95%
Cap/Sales(3y)3.11%
Cap/Sales(5y)3.16%
Profit Quality(3y)100.64%
Profit Quality(5y)122.75%
High Growth Momentum
Growth
EPS 1Y (TTM)13.14%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%11.15%
EPS Next Y12.32%
EPS Next 2Y11.41%
EPS Next 3Y11.57%
EPS Next 5Y9.88%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.25%
Revenue Next Year10.93%
Revenue Next 2Y9.75%
Revenue Next 3Y9.32%
Revenue Next 5Y8.42%
EBIT growth 1Y11.5%
EBIT growth 3Y12.96%
EBIT growth 5Y8.77%
EBIT Next Year27.12%
EBIT Next 3Y15.39%
EBIT Next 5Y13.24%
FCF growth 1Y58.61%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y51.66%
OCF growth 3Y9.14%
OCF growth 5Y14.13%
STRYKER CORP / SYK FAQ
What is the ChartMill fundamental rating of STRYKER CORP (SYK) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SYK.
What is the valuation status for SYK stock?
ChartMill assigns a valuation rating of 4 / 10 to STRYKER CORP (SYK). This can be considered as Fairly Valued.
Can you provide the profitability details for STRYKER CORP?
STRYKER CORP (SYK) has a profitability rating of 8 / 10.
How financially healthy is STRYKER CORP?
The financial health rating of STRYKER CORP (SYK) is 4 / 10.
Is the dividend of STRYKER CORP sustainable?
The dividend rating of STRYKER CORP (SYK) is 6 / 10 and the dividend payout ratio is 43.09%.