STRYKER CORP (SYK) Stock Fundamental Analysis
USA - NYSE:SYK - US8636671013 - Common Stock
359.52 USD
-0.61 (-0.17%)
359.52 USD
0 (0%)
Taking everything into account, SYK scores 6 out of 10 in our fundamental rating. SYK was compared to 188 industry peers in the Health Care Equipment & Supplies industry. While SYK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SYK is showing excellent growth while it is valued at reasonable prices. 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.
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
The Return On Assets of SYK (6.25%) is better than 84.04% of its industry peers.
SYK has a Return On Equity of 13.51%. This is amongst the best in the industry. SYK outperforms 89.36% of its industry peers.
SYK has a better Return On Invested Capital (11.70%) than 92.02% of its industry peers.
SYK had an Average Return On Invested Capital over the past 3 years of 11.52%. This is above the industry average of 8.98%.
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
Looking at the Profit Margin, with a value of 12.07%, SYK belongs to the top of the industry, outperforming 86.70% of the companies in the same industry.
In the last couple of years the Profit Margin of SYK has remained more or less at the same level.
SYK has a Operating Margin of 22.14%. This is amongst the best in the industry. SYK outperforms 93.62% of its industry peers.
SYK's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 64.59%, SYK is in the better half of the industry, outperforming 68.09% of the companies in the same industry.
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
SYK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SYK has been increased compared to 1 year ago.
Compared to 5 years ago, SYK has more shares outstanding
The debt/assets ratio for SYK has been reduced compared to a year ago.
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 Debt to FCF ratio of 3.64. This is amongst the best in the industry. SYK outperforms 81.91% 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 67.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC8.22%
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 66.49% of its industry peers.
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.
The Earnings Per Share has been growing by 8.09% on average over the past years. This is quite good.
Looking at the last year, SYK shows a quite strong growth in Revenue. The Revenue has grown by 10.95% in the last year.
Measured over the past years, SYK shows a quite strong growth in Revenue. The Revenue has been growing by 8.71% on average per year.
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.
The Revenue is expected to grow by 8.42% on average over the next years. This is quite good.
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
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
With a Price/Earnings ratio of 27.30, SYK can be considered very expensive at the moment.
SYK's Price/Earnings ratio is a bit cheaper when compared to the industry. SYK is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, SYK is valued at the same level.
With a Price/Forward Earnings ratio of 23.98, SYK is valued on the expensive side.
73.94% of the companies in the same industry are more expensive than SYK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SYK to the average of the S&P500 Index (34.98), we can say SYK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.3 | ||
| Fwd PE | 23.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYK is valued a bit cheaper than the industry average as 73.94% of the companies are valued more expensively.
SYK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYK is cheaper than 77.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.75 | ||
| EV/EBITDA | 22.8 |
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)2.44
PEG (5Y)3.37
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.
Compared to an average industry Dividend Yield of 1.70, SYK pays a better dividend. On top of this SYK pays more dividend than 93.09% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
On average, the dividend of SYK grows each year by 9.03%, which is quite nice.
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
SYK pays out 43.09% of its income as dividend. 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%
359.52
-0.61 (-0.17%)
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-0.9%
Ins Owners0.11%
Ins Owner Change0.99%
Market Cap137.45B
Revenue(TTM)24.38B
Net Income(TTM)2.94B
Analysts80
Price Target439.53 (22.25%)
Short Float %1.17%
Short Ratio2.65
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)0.13%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.3 | ||
| Fwd PE | 23.98 | ||
| P/S | 5.64 | ||
| P/FCF | 33.75 | ||
| P/OCF | 28.45 | ||
| P/B | 6.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.8 |
EPS(TTM)13.17
EY3.66%
EPS(NY)14.99
Fwd EY4.17%
FCF(TTM)10.65
FCFY2.96%
OCF(TTM)12.64
OCFY3.52%
SpS63.77
BVpS56.98
TBVpS-8.67
PEG (NY)2.44
PEG (5Y)3.37
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
WACC8.22%
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%.