STRYKER CORP (SYK)
US8636671013 - Common Stock
SYK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 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 has a correct valuation and a medium growth rate.
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
Looking at the Return On Assets, with a value of 8.19%, SYK belongs to the top of the industry, outperforming 89.30% of the companies in the same industry.
SYK's Return On Equity of 17.82% is amongst the best of the industry. SYK outperforms 93.58% of its industry peers.
The Return On Invested Capital of SYK (11.63%) is better 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 8.19%.
The 3 year average ROIC (10.90%) for SYK is below the current ROIC(11.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 17.82% | ||
| ROIC | 11.63% |
ROA(3y)6.69%
ROA(5y)6.33%
ROE(3y)14.87%
ROE(5y)14.62%
ROIC(3y)10.9%
ROIC(5y)10.57%
1.3 Margins
With an excellent Profit Margin value of 16.34%, SYK belongs to the best of the industry, outperforming 91.44% of the companies in the same industry.
In the last couple of years the Profit Margin of SYK has declined.
With an excellent Operating Margin value of 21.99%, 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 63.88% is fine compared to the rest of the industry. SYK outperforms 65.78% of its industry peers.
SYK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.99% | ||
| PM (TTM) | 16.34% | ||
| GM | 63.88% |
OM growth 3Y1.3%
OM growth 5Y-1.22%
PM growth 3Y11.49%
PM growth 5Y-9.98%
GM growth 3Y0.05%
GM growth 5Y-0.65%
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.
The number of shares outstanding for SYK has been increased compared to 1 year ago.
Compared to 5 years ago, SYK has more shares outstanding
Compared to 1 year ago, SYK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.16 indicates that SYK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.16, SYK is in the better half of the industry, outperforming 78.07% of the companies in the same industry.
SYK has a debt to FCF ratio of 4.83. This is a neutral value as SYK would need 4.83 years to pay back of all of its debts.
SYK has a Debt to FCF ratio of 4.83. This is amongst the best in the industry. SYK outperforms 81.28% of its industry peers.
SYK has a Debt/Equity ratio of 0.66. This is a neutral value indicating SYK is somewhat dependend on debt financing.
SYK's Debt to Equity ratio of 0.66 is on the low side compared to the rest of the industry. SYK is outperformed by 67.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 5.16 |
ROIC/WACC1.32
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.91 indicates that SYK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.91, SYK is not doing good in the industry: 68.45% of the companies in the same industry are doing better.
A Quick Ratio of 1.22 indicates that SYK should not have too much problems paying its short term obligations.
SYK has a worse Quick ratio (1.22) than 68.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.79% over the past year.
SYK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.72% yearly.
Looking at the last year, SYK shows a quite strong growth in Revenue. The Revenue has grown by 10.51% in the last year.
The Revenue has been growing by 8.55% on average over the past years. This is quite good.
EPS 1Y (TTM)14.79%
EPS 3Y12.57%
EPS 5Y7.72%
EPS Q2Q%16.67%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y12.62%
Revenue growth 5Y8.55%
Sales Q2Q%11.92%
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 10.03% on average per year.
SYK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
EPS Next Y14.88%
EPS Next 2Y13.52%
EPS Next 3Y12.43%
EPS Next 5Y10.03%
Revenue Next Year11.37%
Revenue Next 2Y9.74%
Revenue Next 3Y9.1%
Revenue Next 5Y8.19%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 31.32 indicates a quite expensive valuation of SYK.
Based on the Price/Earnings ratio, SYK is valued a bit cheaper than 74.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of SYK to the average of the S&P500 Index (27.73), we can say SYK is valued inline with the index average.
The Price/Forward Earnings ratio is 26.69, which means the current valuation is very expensive for SYK.
75.94% of the companies in the same industry are more expensive than SYK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, SYK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.32 | ||
| Fwd PE | 26.69 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYK indicates a somewhat cheap valuation: SYK is cheaper than 77.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.37 | ||
| EV/EBITDA | 25.39 |
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.
SYK's earnings are expected to grow with 12.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.11
PEG (5Y)4.06
EPS Next 2Y13.52%
EPS Next 3Y12.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, 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 1.68. SYK pays more dividend than 93.58% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of SYK grows each year by 9.82%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.82%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
SYK pays out 33.40% of its income as dividend. This is a sustainable payout ratio.
The dividend of SYK is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP33.4%
EPS Next 2Y13.52%
EPS Next 3Y12.43%
STRYKER CORP
NYSE:SYK (12/20/2024, 8:04:00 PM)
After market: 364.6 0 (0%)364.6
+7.46 (+2.09%)
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 Change2.53%
Ins Owners0.1%
Ins Owner Change-0.66%
Market Cap138.99B
Analysts79.44
Price Target410.63 (12.62%)
Short Float %1.18%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Dividend Growth(5Y)9.82%
DP33.4%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.13%
Min EPS beat(2)-0.26%
Max EPS beat(2)2.52%
EPS beat(4)3
Avg EPS beat(4)3.05%
Min EPS beat(4)-0.26%
Max EPS beat(4)5.12%
EPS beat(8)7
Avg EPS beat(8)3.56%
EPS beat(12)8
Avg EPS beat(12)1.6%
EPS beat(16)10
Avg EPS beat(16)1.54%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)1.23%
Revenue beat(4)3
Avg Revenue beat(4)1.26%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)2.79%
Revenue beat(8)6
Avg Revenue beat(8)1.89%
Revenue beat(12)8
Avg Revenue beat(12)1.17%
Revenue beat(16)9
Avg Revenue beat(16)0.64%
PT rev (1m)5.87%
PT rev (3m)6.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.32 | ||
| Fwd PE | 26.69 | ||
| P/S | 6.33 | ||
| P/FCF | 43.37 | ||
| P/OCF | 36.21 | ||
| P/B | 6.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.39 |
EPS(TTM)11.64
EY3.19%
EPS(NY)13.66
Fwd EY3.75%
FCF(TTM)8.41
FCFY2.31%
OCF(TTM)10.07
OCFY2.76%
SpS57.64
BVpS52.85
TBVpS-3.11
PEG (NY)2.11
PEG (5Y)4.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 17.82% | ||
| ROCE | 13.36% | ||
| ROIC | 11.63% | ||
| ROICexc | 13.36% | ||
| ROICexgc | 41.45% | ||
| OM | 21.99% | ||
| PM (TTM) | 16.34% | ||
| GM | 63.88% | ||
| FCFM | 14.59% |
ROA(3y)6.69%
ROA(5y)6.33%
ROE(3y)14.87%
ROE(5y)14.62%
ROIC(3y)10.9%
ROIC(5y)10.57%
ROICexc(3y)11.93%
ROICexc(5y)11.87%
ROICexgc(3y)37.04%
ROICexgc(5y)36%
ROCE(3y)12.52%
ROCE(5y)12.15%
ROICexcg growth 3Y8.85%
ROICexcg growth 5Y-1.43%
ROICexc growth 3Y10.42%
ROICexc growth 5Y-1.74%
OM growth 3Y1.3%
OM growth 5Y-1.22%
PM growth 3Y11.49%
PM growth 5Y-9.98%
GM growth 3Y0.05%
GM growth 5Y-0.65%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.83 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 61.2% | ||
| Cap/Sales | 2.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.43% | ||
| Profit Quality | 89.28% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 5.16 |
F-Score6
WACC8.84%
ROIC/WACC1.32
Cap/Depr(3y)55.96%
Cap/Depr(5y)62.26%
Cap/Sales(3y)3.02%
Cap/Sales(5y)3.36%
Profit Quality(3y)107.58%
Profit Quality(5y)114.25%
High Growth Momentum
Growth
EPS 1Y (TTM)14.79%
EPS 3Y12.57%
EPS 5Y7.72%
EPS Q2Q%16.67%
EPS Next Y14.88%
EPS Next 2Y13.52%
EPS Next 3Y12.43%
EPS Next 5Y10.03%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y12.62%
Revenue growth 5Y8.55%
Sales Q2Q%11.92%
Revenue Next Year11.37%
Revenue Next 2Y9.74%
Revenue Next 3Y9.1%
Revenue Next 5Y8.19%
EBIT growth 1Y16.78%
EBIT growth 3Y14.09%
EBIT growth 5Y7.22%
EBIT Next Year27.32%
EBIT Next 3Y15.9%
EBIT Next 5Y13.41%
FCF growth 1Y59.06%
FCF growth 3Y3.97%
FCF growth 5Y9%
OCF growth 1Y46.47%
OCF growth 3Y4.23%
OCF growth 5Y7.29%