STRYKER CORP (SYK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYK - US8636671013 - Common Stock
356.98 USD
+1.94 (+0.55%)
356.98 USD
0 (0%)
Overall SYK gets a fundamental rating of 6 out of 10. We evaluated SYK against 184 industry peers in the Health Care Equipment & Supplies industry. While SYK has a great profitability rating, 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.
- Each year in the past 5 years SYK has been profitable.
- Each year in the past 5 years SYK had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.25%, SYK belongs to the top of the industry, outperforming 85.87% of the companies in the same industry.
- The Return On Equity of SYK (13.51%) is better than 89.67% of its industry peers.
- With an excellent Return On Invested Capital value of 11.70%, SYK belongs to the best of the industry, outperforming 91.85% of the companies in the same industry.
- SYK had an Average Return On Invested Capital over the past 3 years of 11.52%. This is above the industry average of 8.81%.
- 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
- SYK has a better Profit Margin (12.07%) than 87.50% of its industry peers.
- 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.
- In the last couple of years the Operating Margin of SYK has remained more or less at the same level.
- SYK has a Gross Margin of 64.59%. This is in the better half 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SYK 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
- 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.
- Looking at the Debt to Equity ratio, with a value of 0.68, SYK is doing worse than 66.85% of the companies in the same industry.
| 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 worse Current ratio (1.85) than 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.
- SYK's Quick ratio of 1.13 is on the low side compared to the rest of the industry. SYK is outperformed by 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.14% over the past year.
- Measured over the past years, SYK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.09% on average per year.
- SYK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.95%.
- 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.
- The Revenue is expected to grow by 8.47% on average over the next years. This is quite good.
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
- 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
- SYK is valuated quite expensively with a Price/Earnings ratio of 27.11.
- Based on the Price/Earnings ratio, SYK is valued a bit cheaper than 77.17% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SYK to the average of the S&P500 Index (27.25), we can say SYK is valued inline with the index average.
- SYK is valuated rather expensively with a Price/Forward Earnings ratio of 23.60.
- SYK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SYK is cheaper than 77.72% of the companies in the same industry.
- 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 | 27.11 | ||
| Fwd PE | 23.6 |
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.
- SYK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYK is cheaper than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.52 | ||
| 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.
- The excellent profitability rating of SYK may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)3.35
EPS Next 2Y11.4%
EPS Next 3Y11.59%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.98%, 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 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 1.82, 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 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)9.03%
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.
- 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.
DP43.09%
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 27.11 and the Price/Book (PB) ratio is 6.27.
Can you provide the financial health for SYK stock?
The financial health rating of STRYKER CORP (SYK) is 4 / 10.