STRYKER CORP (SYK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYK - US8636671013 - Common Stock
355.63 USD
+0.59 (+0.17%)
SYK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 184 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 not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- SYK had positive earnings in the past year.
- In the past year SYK had a positive cash flow from operations.
- Each year in the past 5 years SYK has 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 (6.25%) is better than 85.87% of its industry peers.
- Looking at the Return On Equity, with a value of 13.51%, SYK belongs to the top of the industry, outperforming 89.67% of the companies in the same industry.
- The Return On Invested Capital of SYK (11.70%) is better than 91.85% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SYK is above the industry average of 8.84%.
- 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
- With an excellent Profit Margin value of 12.07%, SYK belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- SYK's Profit Margin has been stable in the last couple of years.
- The Operating Margin of SYK (22.14%) is better than 93.48% of its industry peers.
- SYK's Operating Margin has been stable in the last couple of years.
- SYK's Gross Margin of 64.59% is fine compared to the rest of the industry. SYK outperforms 69.02% of its industry peers.
- SYK's Gross Margin has been stable in the last couple of years.
| 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%
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.
- 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
- The Debt to FCF ratio of SYK is 3.64, which is a good value as it means it would take SYK, 3.64 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 3.64, SYK belongs to the best of the industry, outperforming 80.98% of the companies in the same industry.
- SYK has a Debt/Equity ratio of 0.68. This is a neutral value indicating SYK is somewhat dependend on debt financing.
- The Debt to Equity ratio of SYK (0.68) is worse than 66.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.19
WACC9.8%
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 64.67% 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 71.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
- SYK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.14%, 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 10.95% 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)13.14%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%11.15%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.25%
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 10.14% yearly.
- Based on estimates for the next years, SYK will show a quite strong growth in Revenue. The Revenue will grow by 8.47% on average per year.
EPS Next Y12.34%
EPS Next 2Y11.4%
EPS Next 3Y11.59%
EPS Next 5Y10.14%
Revenue Next Year10.93%
Revenue Next 2Y9.76%
Revenue Next 3Y9.33%
Revenue Next 5Y8.47%
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
- SYK is valuated quite expensively with a Price/Earnings ratio of 27.00.
- Based on the Price/Earnings ratio, SYK is valued a bit cheaper than 77.17% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, SYK is valued at the same level.
- SYK is valuated rather expensively with a Price/Forward Earnings ratio of 23.51.
- Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than the industry average as 77.72% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SYK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27 | ||
| Fwd PE | 23.51 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SYK is valued a bit cheaper than 74.46% of the companies in the same industry.
- 78.26% of the companies in the same industry are more expensive than SYK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.39 | ||
| EV/EBITDA | 22.51 |
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)2.19
PEG (5Y)3.34
EPS Next 2Y11.4%
EPS Next 3Y11.59%
5. Dividend
5.1 Amount
- SYK has a yearly dividend return of 0.98%, which is pretty low.
- SYK's Dividend Yield is rather good when compared to the industry average which is at 0.20. SYK pays more dividend than 93.48% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
- On average, the dividend of SYK grows each year by 9.03%, 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 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
- 43.09% of the earnings are spent on dividend by SYK. This is a bit on the high side, but may be sustainable.
- The dividend of SYK is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP43.09%
EPS Next 2Y11.4%
EPS Next 3Y11.59%
STRYKER CORP / SYK FAQ
What is the ChartMill fundamental rating of STRYKER CORP (SYK) stock?
ChartMill assigns a fundamental rating of 6 / 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 and the Price/Book (PB) ratio is 6.24.
Can you provide the financial health for SYK stock?
The financial health rating of STRYKER CORP (SYK) is 4 / 10.