STRYKER CORP (SYK) Stock Fundamental Analysis
USA - NYSE:SYK - US8636671013 - Common Stock
374.42 USD
+5.17 (+1.4%)
374.42 USD
0 (0%)
SYK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 191 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 growing strongly while it is still valued neutral. This is a good combination!
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
With an excellent Return On Assets value of 6.30%, SYK belongs to the best of the industry, outperforming 84.82% of the companies in the same industry.
SYK has a better Return On Equity (13.77%) than 90.05% of its industry peers.
SYK's Return On Invested Capital of 11.66% is amongst the best of the industry. SYK outperforms 91.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYK is above the industry average of 8.89%.
The last Return On Invested Capital (11.66%) for SYK is above the 3 year average (11.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 13.77% | ||
| ROIC | 11.66% |
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 Profit Margin of 12.25%. This is amongst the best in the industry. SYK outperforms 89.01% 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 22.25%, SYK belongs to the best of the industry, outperforming 93.19% of the companies in the same industry.
In the last couple of years the Operating Margin of SYK has remained more or less at the same level.
The Gross Margin of SYK (64.62%) is better than 68.06% 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 | 22.25% | ||
| PM (TTM) | 12.25% | ||
| GM | 64.62% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SYK is still creating some value.
The number of shares outstanding for SYK has been increased compared to 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
SYK has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as SYK would need 3.69 years to pay back of all of its debts.
SYK has a better Debt to FCF ratio (3.69) than 84.29% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that SYK is somewhat dependend on debt financing.
SYK's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. SYK is outperformed by 69.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.78 indicates that SYK should not have too much problems paying its short term obligations.
SYK has a worse Current ratio (1.78) than 68.59% of its industry peers.
A Quick Ratio of 1.06 indicates that SYK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.06, SYK is doing worse than 73.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
SYK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.43%, 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.
The Revenue has grown by 11.36% in the past year. This is quite good.
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)14.43%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%11.39%
Revenue 1Y (TTM)11.36%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.07%
3.2 Future
SYK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.13% yearly.
Based on estimates for the next years, SYK will show a quite strong growth in Revenue. The Revenue will grow by 8.40% on average per year.
EPS Next Y11.82%
EPS Next 2Y11.33%
EPS Next 3Y11.22%
EPS Next 5Y10.13%
Revenue Next Year10.63%
Revenue Next 2Y9.54%
Revenue Next 3Y9.14%
Revenue Next 5Y8.4%
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.
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
With a Price/Earnings ratio of 29.14, SYK can be considered very expensive at the moment.
73.30% of the companies in the same industry are more expensive than SYK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.40, SYK is valued at the same level.
The Price/Forward Earnings ratio is 24.78, which indicates a rather expensive current valuation of SYK.
75.39% of the companies in the same industry are more expensive than SYK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SYK to the average of the S&P500 Index (22.94), we can say SYK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.14 | ||
| Fwd PE | 24.78 |
4.2 Price Multiples
73.30% 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 78.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.57 | ||
| EV/EBITDA | 24.29 |
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.
SYK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.46
PEG (5Y)3.6
EPS Next 2Y11.33%
EPS Next 3Y11.22%
5. Dividend
5.1 Amount
SYK has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 1.83, SYK pays a better dividend. On top of this SYK pays more dividend than 92.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.03%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
SYK pays out 42.87% 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.
DP42.87%
EPS Next 2Y11.33%
EPS Next 3Y11.22%
374.42
+5.17 (+1.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.52%
Inst Owner Change-0.12%
Ins Owners0.11%
Ins Owner Change0.44%
Market Cap143.14B
Analysts80
Price Target441.61 (17.95%)
Short Float %1.28%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend3.2
Dividend Growth(5Y)9.03%
DP42.87%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.6%
Min EPS beat(2)1.01%
Max EPS beat(2)4.19%
EPS beat(4)4
Avg EPS beat(4)2.56%
Min EPS beat(4)1.01%
Max EPS beat(4)4.19%
EPS beat(8)7
Avg EPS beat(8)2.5%
EPS beat(12)10
Avg EPS beat(12)2.53%
EPS beat(16)11
Avg EPS beat(16)1.4%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)0.53%
Max Revenue beat(2)1.82%
Revenue beat(4)4
Avg Revenue beat(4)0.94%
Min Revenue beat(4)0.17%
Max Revenue beat(4)1.82%
Revenue beat(8)6
Avg Revenue beat(8)0.94%
Revenue beat(12)9
Avg Revenue beat(12)1.43%
Revenue beat(16)11
Avg Revenue beat(16)0.87%
PT rev (1m)-0.2%
PT rev (3m)1.43%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.14 | ||
| Fwd PE | 24.78 | ||
| P/S | 6.01 | ||
| P/FCF | 35.57 | ||
| P/OCF | 30.03 | ||
| P/B | 6.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.29 |
EPS(TTM)12.85
EY3.43%
EPS(NY)15.11
Fwd EY4.03%
FCF(TTM)10.53
FCFY2.81%
OCF(TTM)12.47
OCFY3.33%
SpS62.3
BVpS55.43
TBVpS-10.34
PEG (NY)2.46
PEG (5Y)3.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 13.77% | ||
| ROCE | 13.57% | ||
| ROIC | 11.66% | ||
| ROICexc | 12.45% | ||
| ROICexgc | 39.83% | ||
| OM | 22.25% | ||
| PM (TTM) | 12.25% | ||
| GM | 64.62% | ||
| FCFM | 16.89% |
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%
ROICexcg growth 3Y8.12%
ROICexcg 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 67.45% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.48% | ||
| Profit Quality | 137.9% | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | N/A |
F-Score5
WACC8.14%
ROIC/WACC1.43
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)14.43%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%11.39%
EPS Next Y11.82%
EPS Next 2Y11.33%
EPS Next 3Y11.22%
EPS Next 5Y10.13%
Revenue 1Y (TTM)11.36%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.07%
Revenue Next Year10.63%
Revenue Next 2Y9.54%
Revenue Next 3Y9.14%
Revenue Next 5Y8.4%
EBIT growth 1Y13.91%
EBIT growth 3Y12.96%
EBIT growth 5Y8.77%
EBIT Next Year27.1%
EBIT Next 3Y15.42%
EBIT Next 5Y13.72%
FCF growth 1Y66.49%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y57.55%
OCF growth 3Y9.14%
OCF growth 5Y14.13%