STRYKER CORP (SYK) Stock Fundamental Analysis
NYSE:SYK - New York Stock Exchange, Inc. - US8636671013 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SYK. SYK was compared to 187 industry peers in the Health Care Equipment & Supplies industry. While SYK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SYK is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year SYK was profitable.
SYK had a positive operating cash flow in the past year.
In the past 5 years SYK has always been profitable.
In the past 5 years SYK always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SYK (6.21%) is better than 87.17% of its industry peers.
The Return On Equity of SYK (13.66%) is better than 90.37% of its industry peers.
SYK has a better Return On Invested Capital (11.71%) than 93.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SYK is above the industry average of 7.89%.
The 3 year average ROIC (11.52%) for SYK is below the current ROIC(11.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 13.66% | ||
| ROIC | 11.71% |
ROA(3y)7.1%
ROA(5y)6.34%
ROE(3y)15.24%
ROE(5y)14.27%
ROIC(3y)11.52%
ROIC(5y)10.64%
1.3 Margins
SYK has a better Profit Margin (12.31%) than 89.84% of its industry peers.
SYK's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 22.35%, SYK belongs to the top 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.
With a decent Gross Margin value of 64.57%, SYK is doing good in the industry, outperforming 66.84% of the companies in the same industry.
SYK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.35% | ||
| PM (TTM) | 12.31% | ||
| GM | 64.57% |
OM growth 3Y2.95%
OM growth 5Y-0.35%
PM growth 3Y4.36%
PM growth 5Y-1.09%
GM growth 3Y-0.02%
GM growth 5Y-0.49%
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 more shares outstanding than it did 1 year ago.
SYK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SYK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.15 indicates that SYK is not in any danger for bankruptcy at the moment.
SYK has a Altman-Z score of 5.15. This is in the better half of the industry: SYK outperforms 77.54% of its industry peers.
SYK has a debt to FCF ratio of 4.69. This is a neutral value as SYK would need 4.69 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.69, SYK belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that SYK is somewhat dependend on debt financing.
The Debt to Equity ratio of SYK (0.69) is worse than 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 5.15 |
ROIC/WACC1.37
WACC8.54%
2.3 Liquidity
SYK has a Current Ratio of 1.64. 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 1.64. This is in the lower half of the industry: SYK underperforms 72.19% of its industry peers.
A Quick Ratio of 1.00 indicates that SYK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, SYK is doing worse than 77.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
SYK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.32%, 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 8.09% yearly.
Looking at the last year, SYK shows a quite strong growth in Revenue. The Revenue has grown by 10.76% in the last year.
Measured over the past years, SYK shows a quite strong growth in Revenue. The Revenue has been growing by 8.71% on average per year.
EPS 1Y (TTM)14.32%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%13.6%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.88%
3.2 Future
The Earnings Per Share is expected to grow by 9.96% on average over the next years. This is quite good.
Based on estimates for the next years, SYK will show a quite strong growth in Revenue. The Revenue will grow by 8.20% on average per year.
EPS Next Y10.6%
EPS Next 2Y10.79%
EPS Next 3Y11.11%
EPS Next 5Y9.96%
Revenue Next Year9.64%
Revenue Next 2Y8.99%
Revenue Next 3Y8.77%
Revenue Next 5Y8.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.08, which means the current valuation is very expensive for SYK.
Based on the Price/Earnings ratio, SYK is valued a bit cheaper than 73.80% of the companies in the same industry.
SYK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
SYK is valuated quite expensively with a Price/Forward Earnings ratio of 26.03.
SYK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SYK is cheaper than 73.26% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SYK to the average of the S&P500 Index (21.76), we can say SYK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.08 | ||
| Fwd PE | 26.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYK is valued a bit cheaper than 71.12% of the companies in the same industry.
SYK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYK is cheaper than 77.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.61 | ||
| EV/EBITDA | 26.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SYK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.93
PEG (5Y)3.84
EPS Next 2Y10.79%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
SYK has a yearly dividend return of 0.85%, which is pretty low.
Compared to an average industry Dividend Yield of 1.75, SYK pays a better dividend. On top of this SYK pays more dividend than 92.51% of the companies listed in the same industry.
With a Dividend Yield of 0.85, SYK pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
On average, the dividend of SYK grows each year by 9.04%, which is quite nice.
SYK has paid a dividend for at least 10 years, which is a reliable track record.
SYK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.04%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
SYK pays out 43.20% 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.
DP43.2%
EPS Next 2Y10.79%
EPS Next 3Y11.11%
389.46
-5.31 (-1.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.81%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change4.34%
Market Cap148.84B
Analysts80
Price Target434.44 (11.55%)
Short Float %1.42%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend3.2
Dividend Growth(5Y)9.04%
DP43.2%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.36%
Min EPS beat(2)2.54%
Max EPS beat(2)4.19%
EPS beat(4)3
Avg EPS beat(4)2.25%
Min EPS beat(4)-0.26%
Max EPS beat(4)4.19%
EPS beat(8)7
Avg EPS beat(8)3.09%
EPS beat(12)9
Avg EPS beat(12)2.27%
EPS beat(16)11
Avg EPS beat(16)1.63%
Revenue beat(2)2
Avg Revenue beat(2)1%
Min Revenue beat(2)0.17%
Max Revenue beat(2)1.82%
Revenue beat(4)3
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)1.82%
Revenue beat(8)6
Avg Revenue beat(8)1.19%
Revenue beat(12)8
Avg Revenue beat(12)1.23%
Revenue beat(16)11
Avg Revenue beat(16)1%
PT rev (1m)0.13%
PT rev (3m)-0.69%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.08 | ||
| Fwd PE | 26.03 | ||
| P/S | 6.41 | ||
| P/FCF | 41.61 | ||
| P/OCF | 34.71 | ||
| P/B | 7.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.09 |
EPS(TTM)12.53
EY3.22%
EPS(NY)14.96
Fwd EY3.84%
FCF(TTM)9.36
FCFY2.4%
OCF(TTM)11.22
OCFY2.88%
SpS60.75
BVpS54.77
TBVpS-11.23
PEG (NY)2.93
PEG (5Y)3.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 13.66% | ||
| ROCE | 13.63% | ||
| ROIC | 11.71% | ||
| ROICexc | 12.51% | ||
| ROICexgc | 42.69% | ||
| OM | 22.35% | ||
| PM (TTM) | 12.31% | ||
| GM | 64.57% | ||
| FCFM | 15.41% |
ROA(3y)7.1%
ROA(5y)6.34%
ROE(3y)15.24%
ROE(5y)14.27%
ROIC(3y)11.52%
ROIC(5y)10.64%
ROICexc(3y)12.76%
ROICexc(5y)11.81%
ROICexgc(3y)39.42%
ROICexgc(5y)36.5%
ROCE(3y)13.4%
ROCE(5y)12.38%
ROICexcg growth 3Y8.12%
ROICexcg growth 5Y2.5%
ROICexc growth 3Y8.12%
ROICexc growth 5Y0.63%
OM growth 3Y2.95%
OM growth 5Y-0.35%
PM growth 3Y4.36%
PM growth 5Y-1.09%
GM growth 3Y-0.02%
GM growth 5Y-0.49%
F-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 66.95% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.59% | ||
| Profit Quality | 125.11% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 5.15 |
F-Score4
WACC8.54%
ROIC/WACC1.37
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)14.32%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%13.6%
EPS Next Y10.6%
EPS Next 2Y10.79%
EPS Next 3Y11.11%
EPS Next 5Y9.96%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.88%
Revenue Next Year9.64%
Revenue Next 2Y8.99%
Revenue Next 3Y8.77%
Revenue Next 5Y8.2%
EBIT growth 1Y14.65%
EBIT growth 3Y12.96%
EBIT growth 5Y8.33%
EBIT Next Year25.23%
EBIT Next 3Y14.78%
EBIT Next 5Y13.73%
FCF growth 1Y57.79%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y49.62%
OCF growth 3Y9.14%
OCF growth 5Y14.13%