STRYKER CORP (SYK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYK - US8636671013 - Common Stock
357.83 USD
+3.26 (+0.92%)
359.88 USD
+2.05 (+0.57%)
We assign a fundamental rating of 6 out of 10 to SYK. SYK was compared to 184 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
- In the past year SYK was profitable.
- In the past year SYK had a positive cash flow from operations.
- SYK had positive earnings in each of the past 5 years.
- SYK had a positive operating cash flow in each of the past 5 years.
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.
- SYK's Return On Equity of 13.51% is amongst the best of the industry. SYK outperforms 89.67% of its industry peers.
- SYK's Return On Invested Capital of 11.70% is amongst the best of the industry. SYK outperforms 91.85% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SYK 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
- The Profit Margin of SYK (12.07%) is better than 87.50% of its industry peers.
- SYK's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 22.14%, SYK belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
- SYK's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 64.59%, SYK is doing good in the industry, outperforming 69.02% 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
- SYK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- SYK has more shares outstanding than it did 1 year ago.
- SYK has more shares outstanding than it did 5 years ago.
- SYK has a better debt/assets ratio than last year.
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.
- SYK has a better Debt to FCF ratio (3.64) than 80.98% of its industry peers.
- A Debt/Equity ratio of 0.68 indicates that SYK is somewhat dependend on debt financing.
- The Debt to Equity ratio of SYK (0.68) is worse than 66.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.19
WACC9.81%
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.
- Looking at the Quick ratio, with a value of 1.13, SYK is doing worse than 71.74% of the companies in the same industry.
| 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
- The Earnings Per Share is expected to grow by 10.14% on average over the next years. This is quite good.
- 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
- The Price/Earnings ratio is 27.17, which means the current valuation is very expensive for SYK.
- 76.63% of the companies in the same industry are more expensive than SYK, based on the Price/Earnings ratio.
- SYK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 23.65 indicates a rather expensive valuation of SYK.
- Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than the industry average as 77.17% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, SYK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.17 | ||
| Fwd PE | 23.65 |
4.2 Price Multiples
- 74.46% of the companies in the same industry are more expensive than SYK, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, SYK is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.6 | ||
| EV/EBITDA | 22.67 |
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.
PEG (NY)2.2
PEG (5Y)3.36
EPS Next 2Y11.4%
EPS Next 3Y11.59%
5. Dividend
5.1 Amount
- SYK has a yearly dividend return of 0.98%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.20, SYK pays a better dividend. On top of this SYK pays more dividend than 93.48% of the companies listed in the same industry.
- With a Dividend Yield of 0.98, SYK pays less dividend than the S&P500 average, which is at 1.82.
| 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
- 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 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 27.17 and the Price/Book (PB) ratio is 6.28.
Can you provide the financial health for SYK stock?
The financial health rating of STRYKER CORP (SYK) is 4 / 10.