STRYKER CORP (SYK) Stock Fundamental Analysis
NYSE:SYK - New York Stock Exchange, Inc. - US8636671013 - Common Stock - Currency: USD
Overall SYK gets a fundamental rating of 6 out of 10. We evaluated SYK against 190 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years SYK always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SYK (6.97%) is better than 88.30% of its industry peers.
Looking at the Return On Equity, with a value of 14.51%, SYK belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
SYK's Return On Invested Capital of 12.35% is amongst the best of the industry. SYK outperforms 92.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SYK is above the industry average of 8.19%.
The 3 year average ROIC (11.52%) for SYK is below the current ROIC(12.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.51% | ||
| ROIC | 12.35% |
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 Profit Margin of 13.25%. This is amongst the best in the industry. SYK outperforms 90.43% of its industry peers.
SYK's Profit Margin has been stable in the last couple of years.
The Operating Margin of SYK (22.48%) is better than 93.62% of its industry peers.
In the last couple of years the Operating Margin of SYK has remained more or less at the same level.
With a decent Gross Margin value of 64.26%, SYK is doing good in the industry, outperforming 65.43% of the companies in the same industry.
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 | 22.48% | ||
| PM (TTM) | 13.25% | ||
| GM | 64.26% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SYK is creating some value.
Compared to 1 year ago, SYK has more shares outstanding
SYK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SYK has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SYK is 3.58, which is a good value as it means it would take SYK, 3.58 years of fcf income to pay off all of its debts.
SYK has a Debt to FCF ratio of 3.58. This is amongst the best in the industry. SYK outperforms 85.64% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that SYK is somewhat dependend on debt financing.
SYK has a worse Debt to Equity ratio (0.59) than 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | N/A |
ROIC/WACC1.39
WACC8.86%
2.3 Liquidity
A Current Ratio of 1.95 indicates that SYK should not have too much problems paying its short term obligations.
The Current ratio of SYK (1.95) is worse than 67.02% of its industry peers.
SYK has a Quick Ratio of 1.32. 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 1.32. This is in the lower half of the industry: SYK underperforms 66.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.00% 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 10.23%.
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)15%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%15.9%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.68%
3.2 Future
The Earnings Per Share is expected to grow by 11.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.96% on average over the next years.
EPS Next Y12.21%
EPS Next 2Y11.24%
EPS Next 3Y11.54%
EPS Next 5Y11.22%
Revenue Next Year8.23%
Revenue Next 2Y8.11%
Revenue Next 3Y8.1%
Revenue Next 5Y7.96%
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
Based on the Price/Earnings ratio of 31.40, the valuation of SYK can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SYK indicates a somewhat cheap valuation: SYK is cheaper than 73.40% of the companies listed in the same industry.
SYK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.99, which means the current valuation is very expensive for SYK.
SYK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SYK is cheaper than 75.53% of the companies in the same industry.
SYK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.4 | ||
| Fwd PE | 27.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYK is valued a bit cheaper than 73.94% 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 77.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.89 | ||
| EV/EBITDA | 25.15 |
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)2.57
PEG (5Y)3.88
EPS Next 2Y11.24%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
SYK has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 1.66, SYK pays a better dividend. On top of this SYK pays more dividend than 92.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of SYK is nicely growing with an annual growth rate of 9.04%!
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)9.04%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
SYK pays out 40.73% 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.
DP40.73%
EPS Next 2Y11.24%
EPS Next 3Y11.54%
382.78
-3.63 (-0.94%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners79.37%
Inst Owner Change-0.31%
Ins Owners0.1%
Ins Owner Change0.91%
Market Cap145.92B
Analysts79.44
Price Target418.23 (9.26%)
Short Float %1.09%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend3.2
Dividend Growth(5Y)9.04%
DP40.73%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.53%
Min EPS beat(2)2.52%
Max EPS beat(2)2.54%
EPS beat(4)3
Avg EPS beat(4)2.48%
Min EPS beat(4)-0.26%
Max EPS beat(4)5.12%
EPS beat(8)7
Avg EPS beat(8)3.29%
EPS beat(12)9
Avg EPS beat(12)1.94%
EPS beat(16)10
Avg EPS beat(16)1.12%
Revenue beat(2)2
Avg Revenue beat(2)0.7%
Min Revenue beat(2)0.17%
Max Revenue beat(2)1.23%
Revenue beat(4)3
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)1.73%
Revenue beat(8)6
Avg Revenue beat(8)1.43%
Revenue beat(12)8
Avg Revenue beat(12)1.17%
Revenue beat(16)10
Avg Revenue beat(16)0.81%
PT rev (1m)-0.22%
PT rev (3m)7.83%
EPS NQ rev (1m)-3.48%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.4 | ||
| Fwd PE | 27.99 | ||
| P/S | 6.46 | ||
| P/FCF | 42.89 | ||
| P/OCF | 35.1 | ||
| P/B | 7.07 | ||
| P/tB | 380.01 | ||
| EV/EBITDA | 25.15 |
EPS(TTM)12.19
EY3.18%
EPS(NY)13.68
Fwd EY3.57%
FCF(TTM)8.92
FCFY2.33%
OCF(TTM)10.9
OCFY2.85%
SpS59.27
BVpS54.13
TBVpS1.01
PEG (NY)2.57
PEG (5Y)3.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.51% | ||
| ROCE | 14.37% | ||
| ROIC | 12.35% | ||
| ROICexc | 14.14% | ||
| ROICexgc | 41.13% | ||
| OM | 22.48% | ||
| PM (TTM) | 13.25% | ||
| GM | 64.26% | ||
| FCFM | 15.06% |
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-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.58 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 71.9% | ||
| Cap/Sales | 3.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.83% | ||
| Profit Quality | 113.67% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | N/A |
F-Score6
WACC8.86%
ROIC/WACC1.39
Cap/Depr(3y)62.25%
Cap/Depr(5y)59.95%
Cap/Sales(3y)3.11%
Cap/Sales(5y)3.16%
Profit Quality(3y)99.7%
Profit Quality(5y)122.18%
High Growth Momentum
Growth
EPS 1Y (TTM)15%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%15.9%
EPS Next Y12.21%
EPS Next 2Y11.24%
EPS Next 3Y11.54%
EPS Next 5Y11.22%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.68%
Revenue Next Year8.23%
Revenue Next 2Y8.11%
Revenue Next 3Y8.1%
Revenue Next 5Y7.96%
EBIT growth 1Y16.09%
EBIT growth 3Y12.96%
EBIT growth 5Y8.33%
EBIT Next Year24.01%
EBIT Next 3Y14.66%
EBIT Next 5Y12.91%
FCF growth 1Y8.48%
FCF growth 3Y7.51%
FCF growth 5Y17.15%
OCF growth 1Y12.02%
OCF growth 3Y8.41%
OCF growth 5Y13.67%