STRYKER CORP (SYK)
US8636671013 - Common Stock
We assign a fundamental rating of 6 out of 10 to SYK. SYK was compared to 188 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 not valued too expensively and it also shows a decent 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.
Each year in the past 5 years SYK has been profitable.
SYK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SYK's Return On Assets of 8.19% is amongst the best of the industry. SYK outperforms 89.30% of its industry peers.
The Return On Equity of SYK (17.82%) is better than 93.58% of its industry peers.
SYK's Return On Invested Capital of 11.63% is amongst the best of the industry. SYK outperforms 93.58% of its industry peers.
SYK had an Average Return On Invested Capital over the past 3 years of 10.90%. This is above the industry average of 8.23%.
The last Return On Invested Capital (11.63%) for SYK is above the 3 year average (10.90%), which is a sign of increasing profitability.
| 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
SYK has a better Profit Margin (16.34%) than 91.44% of its industry peers.
SYK's Profit Margin has declined in the last couple of years.
SYK has a Operating Margin of 21.99%. This is amongst the best in the industry. SYK outperforms 93.58% 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's Gross Margin of 63.88% is fine compared to the rest of the industry. SYK outperforms 65.24% 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 | 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.
Compared to 1 year ago, SYK has more shares outstanding
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 5.37 indicates that SYK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.37, 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.
With an excellent Debt to FCF ratio value of 4.83, SYK belongs to the best of the industry, outperforming 81.28% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that SYK is somewhat dependend on debt financing.
SYK has a worse Debt to Equity ratio (0.66) than 68.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 5.37 |
ROIC/WACC1.34
WACC8.65%
2.3 Liquidity
SYK has a Current Ratio of 1.91. 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 1.91, SYK is not doing good in the industry: 70.59% 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 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
SYK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.79%, which is quite good.
Measured over the past 5 years, SYK shows a small growth in Earnings Per Share. The EPS has been growing by 7.72% on average per year.
The Revenue has grown by 10.51% in the past year. This is quite good.
SYK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.55% yearly.
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 9.42% on average per year.
The Revenue is expected to grow by 7.51% on average over the next years.
EPS Next Y14.87%
EPS Next 2Y13.54%
EPS Next 3Y12.4%
EPS Next 5Y9.42%
Revenue Next Year11.42%
Revenue Next 2Y9.75%
Revenue Next 3Y9.09%
Revenue Next 5Y7.51%
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
The Price/Earnings ratio is 33.52, which means the current valuation is very expensive for SYK.
Based on the Price/Earnings ratio, SYK is valued a bit cheaper than 72.73% of the companies in the same industry.
SYK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
SYK is valuated quite expensively with a Price/Forward Earnings ratio of 28.55.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than 76.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, SYK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.52 | ||
| Fwd PE | 28.55 |
4.2 Price Multiples
75.40% of the companies in the same industry are more expensive than SYK, based on the Enterprise Value to EBITDA ratio.
SYK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYK is cheaper than 78.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.41 | ||
| EV/EBITDA | 26.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SYK has an outstanding profitability rating, which may justify a higher PE ratio.
SYK's earnings are expected to grow with 12.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.25
PEG (5Y)4.34
EPS Next 2Y13.54%
EPS Next 3Y12.4%
5. Dividend
5.1 Amount
SYK has a yearly dividend return of 0.83%, which is pretty low.
SYK's Dividend Yield is rather good when compared to the industry average which is at 1.68. SYK pays more dividend than 92.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of SYK is nicely growing with an annual growth rate of 9.82%!
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)9.82%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
33.40% of the earnings are spent on dividend by SYK. This is a low number and sustainable payout ratio.
SYK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.4%
EPS Next 2Y13.54%
EPS Next 3Y12.4%
STRYKER CORP
NYSE:SYK (11/21/2024, 8:04:00 PM)
After market: 390.14 0 (0%)390.14
+4.46 (+1.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap148.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.52 | ||
| Fwd PE | 28.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.25
PEG (5Y)4.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 17.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.99% | ||
| PM (TTM) | 16.34% | ||
| GM | 63.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.79%
EPS 3Y12.57%
EPS 5Y
EPS Q2Q%
EPS Next Y14.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.51%
Revenue growth 3Y12.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y