Taking everything into account, SYK scores 5 out of 10 in our fundamental rating. SYK was compared to 185 industry peers in the Health Care Equipment & Supplies industry. SYK scores excellent on profitability, but there are some minor concerns on its financial health. SYK is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SYK was profitable.
SYK had a positive operating cash flow in the past year.
Of the past 5 years SYK 4 years were profitable.
Of the past 5 years SYK 4 years had a positive operating cash flow.

1.2 Ratios

SYK's Return On Assets of 6.25% is amongst the best of the industry. SYK outperforms 85.95% of its industry peers.
SYK has a Return On Equity of 13.51%. This is amongst the best in the industry. SYK outperforms 89.73% of its industry peers.
SYK's Return On Invested Capital of 11.70% is amongst the best of the industry. SYK outperforms 91.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYK 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

SYK has a better Profit Margin (12.07%) than 87.57% of its industry peers.
In the last couple of years the Profit Margin of SYK has remained more or less at the same level.
SYK has a Operating Margin of 22.14%. This is amongst the best in the industry. SYK outperforms 93.51% of its industry peers.
In the last couple of years the Operating Margin of SYK has remained more or less at the same level.
SYK has a Gross Margin of 64.59%. This is in the better half of the industry: SYK outperforms 69.19% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SYK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SYK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

SYK has a debt to FCF ratio of 3.64. This is a good value and a sign of high solvency as SYK would need 3.64 years to pay back of all of its debts.
The Debt to FCF ratio of SYK (3.64) is better than 81.08% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that SYK is somewhat dependend on debt financing.
The Debt to Equity ratio of SYK (0.68) is worse than 67.03% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.68
Debt/FCF	3.64
Altman-Z	N/A

ROIC/WACC1.19

WACC9.87%

2.3 Liquidity

SYK has a Current Ratio of 1.85. 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 Current ratio of 1.85. This is in the lower half of the industry: SYK underperforms 64.86% 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.
Looking at the Quick ratio, with a value of 1.13, SYK is doing worse than 71.89% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.85
Quick Ratio	1.13

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

SYK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.81%, which is quite good.
SYK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.90% yearly.

EPS 1Y (TTM)11.81%

EPS 3Y13.43%

EPS 5Y12.9%

EPS Q2Q%11.47%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%11.42%

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 11.28% 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 8.51% on average per year.

EPS Next Y10.99%

EPS Next 2Y11.48%

EPS Next 3Y10.66%

EPS Next 5Y11.28%

Revenue Next Year8.61%

Revenue Next 2Y8.54%

Revenue Next 3Y8.24%

Revenue Next 5Y8.51%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 27.11 indicates a quite expensive valuation of SYK.
76.76% of the companies in the same industry are more expensive than SYK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SYK to the average of the S&P500 Index (28.32), we can say SYK is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.43, the valuation of SYK can be described as rather expensive.
SYK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SYK is cheaper than 76.76% of the companies in the same industry.
SYK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	27.11
Fwd PE	24.43

4.2 Price Multiples

74.05% of the companies in the same industry are more expensive than SYK, based on the Enterprise Value to EBITDA ratio.
SYK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYK is cheaper than 78.38% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	34.7
EV/EBITDA	23.36

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SYK may justify a higher PE ratio.

PEG (NY)2.47

PEG (5Y)2.1

EPS Next 2Y11.48%

EPS Next 3Y10.66%

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5. Dividend

5.1 Amount

SYK has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 0.21, SYK pays a better dividend. On top of this SYK pays more dividend than 93.51% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.83, SYK's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	0.99%

5.2 History

The dividend of SYK is nicely growing with an annual growth rate of 9.03%!
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.
The dividend of SYK is growing, but earnings are growing more, so the dividend growth is sustainable.

DP43.09%

EPS Next 2Y11.48%

EPS Next 3Y10.66%

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STRYKER CORP / SYK FAQ

What is the ChartMill fundamental rating of STRYKER CORP (SYK) stock?

ChartMill assigns a fundamental rating of 5 / 10 to SYK.

What is the valuation status of STRYKER CORP (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.

What are the PE and PB ratios of STRYKER CORP (SYK) stock?

The Price/Earnings (PE) ratio for STRYKER CORP (SYK) is 27.11 and the Price/Book (PB) ratio is 6.49.

Can you provide the financial health for SYK stock?

The financial health rating of STRYKER CORP (SYK) is 4 / 10.