STRYKER CORP (SYK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYK - US8636671013 - Common Stock
371.18 USD
-1.11 (-0.3%)
371.18 USD
0 (0%)
SYK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 188 industry peers in the Health Care Equipment & Supplies industry. SYK has an excellent profitability rating, 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
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
SYK's Return On Assets of 6.25% is amongst the best of the industry. SYK outperforms 84.04% of its industry peers.
With an excellent Return On Equity value of 13.51%, SYK belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
The Return On Invested Capital of SYK (11.70%) is better than 92.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYK is above the industry average of 8.71%.
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 87.23% of its industry peers.
SYK's Profit Margin has been stable in the last couple of years.
SYK's Operating Margin of 22.14% is amongst the best of the industry. SYK outperforms 93.62% of its industry peers.
SYK's Operating Margin has been stable in the last couple of years.
SYK has a Gross Margin of 64.59%. This is in the better half of the industry: SYK outperforms 66.49% 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.
SYK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SYK has more shares outstanding
SYK has a better debt/assets ratio than last year.
2.2 Solvency
SYK has a debt to FCF ratio of 3.64. This is a good value and a sign of high solvency as SYK would need 3.64 years to pay back of all of its debts.
The Debt to FCF ratio of SYK (3.64) is better than 81.91% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that SYK is somewhat dependend on debt financing.
SYK has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: SYK underperforms 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.44
WACC8.12%
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.
With a Current ratio value of 1.85, SYK is not doing good in the industry: 66.49% of the companies in the same industry are doing better.
A Quick Ratio of 1.13 indicates that SYK should not have too much problems paying its short term obligations.
The Quick ratio of SYK (1.13) is worse than 73.94% of its industry peers.
| 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.
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.
Looking at the last year, SYK shows a quite strong growth in Revenue. The Revenue has grown by 10.95% in the last year.
The Revenue has been growing by 8.71% on average over the past years. This is quite good.
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 10.06% yearly.
SYK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.42% yearly.
EPS Next Y11.17%
EPS Next 2Y10.9%
EPS Next 3Y11.02%
EPS Next 5Y10.06%
Revenue Next Year10.86%
Revenue Next 2Y9.71%
Revenue Next 3Y9.25%
Revenue Next 5Y8.42%
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
Based on the Price/Earnings ratio of 28.18, the valuation of SYK can be described as expensive.
75.00% of the companies in the same industry are more expensive than SYK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. SYK is around the same levels.
A Price/Forward Earnings ratio of 24.76 indicates a rather expensive valuation of SYK.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than 73.40% of the companies in the same industry.
SYK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 24.76 |
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 73.94% of the companies listed in the same industry.
78.19% 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 | 34.84 | ||
| EV/EBITDA | 23.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SYK may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)3.48
EPS Next 2Y10.9%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
SYK has a yearly dividend return of 0.93%, which is pretty low.
SYK's Dividend Yield is rather good when compared to the industry average which is at 1.75. SYK pays more dividend than 92.55% of the companies in the same industry.
With a Dividend Yield of 0.93, SYK pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 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
SYK pays out 43.09% 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.
DP43.09%
EPS Next 2Y10.9%
EPS Next 3Y11.02%
371.18
-1.11 (-0.3%)
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-1.07%
Ins Owners0.11%
Ins Owner Change0.21%
Market Cap141.91B
Revenue(TTM)24.38B
Net Income(TTM)2.94B
Analysts80
Price Target438.19 (18.05%)
Short Float %1.17%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend3.2
Dividend Growth(5Y)9.03%
DP43.09%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.92%
Min EPS beat(2)0.82%
Max EPS beat(2)1.01%
EPS beat(4)4
Avg EPS beat(4)2.14%
Min EPS beat(4)0.82%
Max EPS beat(4)4.19%
EPS beat(8)7
Avg EPS beat(8)2.59%
EPS beat(12)11
Avg EPS beat(12)3.09%
EPS beat(16)12
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)0.53%
Revenue beat(4)3
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)1.82%
Revenue beat(8)6
Avg Revenue beat(8)0.85%
Revenue beat(12)9
Avg Revenue beat(12)1.4%
Revenue beat(16)11
Avg Revenue beat(16)0.98%
PT rev (1m)-0.77%
PT rev (3m)-0.95%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 24.76 | ||
| P/S | 5.82 | ||
| P/FCF | 34.84 | ||
| P/OCF | 29.37 | ||
| P/B | 6.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.51 |
EPS(TTM)13.17
EY3.55%
EPS(NY)14.99
Fwd EY4.04%
FCF(TTM)10.65
FCFY2.87%
OCF(TTM)12.64
OCFY3.41%
SpS63.77
BVpS56.98
TBVpS-8.67
PEG (NY)2.52
PEG (5Y)3.48
Graham Number129.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.25% | ||
| ROE | 13.51% | ||
| ROCE | 13.62% | ||
| ROIC | 11.7% | ||
| ROICexc | 12.78% | ||
| ROICexgc | 41.43% | ||
| OM | 22.14% | ||
| PM (TTM) | 12.07% | ||
| GM | 64.59% | ||
| FCFM | 16.71% |
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%
ROICexgc growth 3Y8.12%
ROICexgc 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 66.52% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.88% | ||
| Profit Quality | 138.4% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | N/A |
F-Score5
WACC8.12%
ROIC/WACC1.44
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)13.14%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%11.15%
EPS Next Y11.17%
EPS Next 2Y10.9%
EPS Next 3Y11.02%
EPS Next 5Y10.06%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.25%
Revenue Next Year10.86%
Revenue Next 2Y9.71%
Revenue Next 3Y9.25%
Revenue Next 5Y8.42%
EBIT growth 1Y11.5%
EBIT growth 3Y12.96%
EBIT growth 5Y8.77%
EBIT Next Year27.1%
EBIT Next 3Y15.42%
EBIT Next 5Y13.27%
FCF growth 1Y58.61%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y51.66%
OCF growth 3Y9.14%
OCF growth 5Y14.13%
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 for 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.
How financially healthy is STRYKER CORP?
The financial health rating of STRYKER CORP (SYK) is 4 / 10.
Is the dividend of STRYKER CORP sustainable?
The dividend rating of STRYKER CORP (SYK) is 6 / 10 and the dividend payout ratio is 43.09%.