STRYKER CORP (SYK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYK - US8636671013 - Common Stock
367.75 USD
+1.36 (+0.37%)
367.75 USD
0 (0%)
SYK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 185 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 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.
SYK had a positive operating cash flow in the past year.
SYK had positive earnings in each of the past 5 years.
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 84.86% of its industry peers.
With an excellent Return On Equity value of 13.51%, SYK belongs to the best of the industry, outperforming 89.73% of the companies in the same industry.
The Return On Invested Capital of SYK (11.70%) is better than 91.89% 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 last Return On Invested Capital (11.70%) for SYK is above the 3 year average (11.52%), which is a sign of increasing profitability.
| 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
The Profit Margin of SYK (12.07%) is better than 87.03% of its industry peers.
SYK's Profit Margin has been stable in the last couple of years.
SYK has a Operating Margin of 22.14%. This is amongst the best in the industry. SYK outperforms 93.51% 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 68.65% of its industry peers.
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 | 22.14% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SYK is still creating some value.
The number of shares outstanding for SYK has been increased compared to 1 year ago.
The number of shares outstanding for SYK has been increased compared to 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 3.64, 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.
Looking at the Debt to FCF ratio, with a value of 3.64, SYK belongs to the top of the industry, outperforming 81.08% 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 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.22
WACC9.58%
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's Current ratio of 1.85 is on the low side compared to the rest of the industry. SYK is outperformed by 64.86% 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 72.43% 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.
SYK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.09% yearly.
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
Based on estimates for the next years, SYK will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.88% on average per year.
The Revenue is expected to grow by 8.42% on average over the next years. This is quite good.
EPS Next Y12.33%
EPS Next 2Y11.42%
EPS Next 3Y11.59%
EPS Next 5Y9.88%
Revenue Next Year10.91%
Revenue Next 2Y9.75%
Revenue Next 3Y9.32%
Revenue Next 5Y8.42%
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
Based on the Price/Earnings ratio of 27.92, the valuation of SYK can be described as expensive.
Based on the Price/Earnings ratio, SYK is valued a bit cheaper than the industry average as 75.68% of the companies are valued more expensively.
SYK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.30, SYK is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than the industry average as 76.76% of the companies are valued more expensively.
SYK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 24.3 |
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 73.51% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SYK is valued a bit cheaper than the industry average as 77.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.53 | ||
| EV/EBITDA | 23.25 |
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)2.26
PEG (5Y)3.45
EPS Next 2Y11.42%
EPS Next 3Y11.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.00%, SYK has a reasonable but not impressive dividend return.
SYK's Dividend Yield is rather good when compared to the industry average which is at 0.20. SYK pays more dividend than 93.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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.
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 2Y11.42%
EPS Next 3Y11.59%
367.75
+1.36 (+0.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.84%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change0.2%
Market Cap140.63B
Revenue(TTM)24.38B
Net Income(TTM)2.94B
Analysts80.56
Price Target437.04 (18.84%)
Short Float %1.17%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend3.2
Dividend Growth(5Y)9.03%
DP43.09%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
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)-0.26%
PT rev (3m)-1.03%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 24.3 | ||
| P/S | 5.77 | ||
| P/FCF | 34.53 | ||
| P/OCF | 29.1 | ||
| P/B | 6.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.25 |
EPS(TTM)13.17
EY3.58%
EPS(NY)15.13
Fwd EY4.11%
FCF(TTM)10.65
FCFY2.9%
OCF(TTM)12.64
OCFY3.44%
SpS63.75
BVpS56.97
TBVpS-8.67
PEG (NY)2.26
PEG (5Y)3.45
Graham Number129.93
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
WACC9.58%
ROIC/WACC1.22
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 Y12.33%
EPS Next 2Y11.42%
EPS Next 3Y11.59%
EPS Next 5Y9.88%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.25%
Revenue Next Year10.91%
Revenue Next 2Y9.75%
Revenue Next 3Y9.32%
Revenue Next 5Y8.42%
EBIT growth 1Y11.5%
EBIT growth 3Y12.96%
EBIT growth 5Y8.77%
EBIT Next Year27.12%
EBIT Next 3Y15.4%
EBIT Next 5Y13.24%
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 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 27.92 and the Price/Book (PB) ratio is 6.46.
Can you provide the financial health for SYK stock?
The financial health rating of STRYKER CORP (SYK) is 4 / 10.