STRYKER CORP (SYK) Stock Fundamental Analysis
USA - NYSE:SYK - US8636671013 - Common Stock
362.22 USD
-11.2 (-3%)
363.65 USD
+1.43 (+0.39%)
Overall SYK gets a fundamental rating of 6 out of 10. We evaluated SYK against 189 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 overvalued while it is showing excellent growth. This is an interesting combination.
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.
In the past 5 years SYK has always been profitable.
In the past 5 years SYK always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.25%, SYK belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.51%, SYK belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Return On Invested Capital of SYK (11.70%) is better than 92.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYK is above the industry average of 8.99%.
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 86.77% 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 93.65% of its industry peers.
In the last couple of years the Operating Margin of SYK has remained more or less at the same level.
Looking at the Gross Margin, with a value of 64.59%, SYK is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
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.
Compared to 1 year ago, SYK has more shares outstanding
SYK has more shares outstanding than it did 5 years ago.
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.
SYK has a better Debt to FCF ratio (3.64) than 82.01% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that SYK is somewhat dependend on debt financing.
SYK's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. SYK is outperformed by 67.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC8.24%
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 66.67% 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 has a worse Quick ratio (1.13) than 73.55% 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.
The Earnings Per Share has been growing by 8.09% on average over the past years. This is quite good.
The Revenue has grown by 10.95% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 10.06% on average over the next years. This is quite good.
Based on estimates for the next years, SYK will show a quite strong growth in Revenue. The Revenue will grow by 8.42% on average per year.
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.
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 27.50, the valuation of SYK can be described as expensive.
73.55% of the companies in the same industry are more expensive than SYK, based on the Price/Earnings ratio.
SYK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.16, which indicates a rather expensive current valuation of SYK.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than the industry average as 74.60% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SYK to the average of the S&P500 Index (34.59), we can say SYK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 24.16 |
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 74.07% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYK indicates a somewhat cheap valuation: SYK is cheaper than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34 | ||
| EV/EBITDA | 23.57 |
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)2.46
PEG (5Y)3.4
EPS Next 2Y10.9%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, 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 1.89. SYK pays more dividend than 93.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y10.9%
EPS Next 3Y11.02%
362.22
-11.2 (-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-0.84%
Ins Owners0.11%
Ins Owner Change0.16%
Market Cap138.48B
Revenue(TTM)24.38B
Net Income(TTM)2.94B
Analysts80
Price Target439.53 (21.34%)
Short Float %1.04%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)-0.47%
PT rev (3m)-0.48%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 24.16 | ||
| P/S | 5.68 | ||
| P/FCF | 34 | ||
| P/OCF | 28.66 | ||
| P/B | 6.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.57 |
EPS(TTM)13.17
EY3.64%
EPS(NY)14.99
Fwd EY4.14%
FCF(TTM)10.65
FCFY2.94%
OCF(TTM)12.64
OCFY3.49%
SpS63.77
BVpS56.98
TBVpS-8.67
PEG (NY)2.46
PEG (5Y)3.4
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
WACC8.24%
ROIC/WACC1.42
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%.