STRYKER CORP (SYK) Stock Fundamental Analysis
NYSE:SYK - New York Stock Exchange, Inc. - US8636671013 - Common Stock
Taking everything into account, SYK scores 6 out of 10 in our fundamental rating. SYK was compared to 191 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 has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years SYK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.19%, SYK belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
The Return On Equity of SYK (17.82%) is better than 93.68% of its industry peers.
SYK's Return On Invested Capital of 11.63% is amongst the best of the industry. SYK outperforms 93.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYK is above the industry average of 8.08%.
The 3 year average ROIC (10.90%) for SYK is below the current ROIC(11.63%), indicating increased profibility in the last year.
| 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's Profit Margin of 16.34% is amongst the best of the industry. SYK outperforms 91.58% of its industry peers.
In the last couple of years the Profit Margin of SYK has declined.
SYK's Operating Margin of 21.99% is amongst the best of the industry. SYK outperforms 93.68% 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 63.88%, SYK is in the better half of the industry, outperforming 66.32% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SYK 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
Compared to 1 year ago, SYK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.34 indicates that SYK is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.34, SYK is doing good in the industry, outperforming 78.95% of the companies in the same industry.
The Debt to FCF ratio of SYK is 4.83, which is a neutral value as it means it would take SYK, 4.83 years of fcf income to pay off all of its debts.
SYK has a better Debt to FCF ratio (4.83) than 81.05% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that SYK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, SYK is not doing good in the industry: 66.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 5.34 |
ROIC/WACC1.34
WACC8.7%
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.
The Current ratio of SYK (1.91) is worse than 67.37% of its industry peers.
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 66.32% 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.
SYK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.72% yearly.
Looking at the last year, SYK shows a quite strong growth in Revenue. The Revenue has grown by 10.51% in the last year.
The Revenue has been growing by 8.55% on average over the past years. This is quite good.
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 10.33% on average per year.
SYK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.37% yearly.
EPS Next Y14.88%
EPS Next 2Y13.52%
EPS Next 3Y12.43%
EPS Next 5Y10.33%
Revenue Next Year11.38%
Revenue Next 2Y9.72%
Revenue Next 3Y9.09%
Revenue Next 5Y8.37%
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
With a Price/Earnings ratio of 34.01, SYK can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SYK is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
SYK's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 28.98, which means the current valuation is very expensive for SYK.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than the industry average as 74.74% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. SYK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.01 | ||
| Fwd PE | 28.98 |
4.2 Price Multiples
74.74% of the companies in the same industry are more expensive than SYK, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYK indicates a somewhat cheap valuation: SYK is cheaper than 76.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.08 | ||
| EV/EBITDA | 26.61 |
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.
A more expensive valuation may be justified as SYK's earnings are expected to grow with 12.43% in the coming years.
PEG (NY)2.29
PEG (5Y)4.41
EPS Next 2Y13.52%
EPS Next 3Y12.43%
5. Dividend
5.1 Amount
SYK has a yearly dividend return of 0.88%, which is pretty low.
SYK's Dividend Yield is rather good when compared to the industry average which is at 1.64. SYK pays more dividend than 92.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of SYK is nicely growing with an annual growth rate of 9.82%!
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)9.82%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
SYK pays out 33.40% of its income as dividend. This is a sustainable payout ratio.
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.
DP33.4%
EPS Next 2Y13.52%
EPS Next 3Y12.43%
STRYKER CORP
NYSE:SYK (1/21/2025, 8:04:00 PM)
After market: 395.85 0 (0%)395.85
+12.43 (+3.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners79.37%
Inst Owner Change-0.14%
Ins Owners0.1%
Ins Owner Change-1.06%
Market Cap150.91B
Analysts79.46
Price Target419.14 (5.88%)
Short Float %1.28%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend3
Dividend Growth(5Y)9.82%
DP33.4%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.13%
Min EPS beat(2)-0.26%
Max EPS beat(2)2.52%
EPS beat(4)3
Avg EPS beat(4)3.05%
Min EPS beat(4)-0.26%
Max EPS beat(4)5.12%
EPS beat(8)7
Avg EPS beat(8)3.56%
EPS beat(12)8
Avg EPS beat(12)1.6%
EPS beat(16)10
Avg EPS beat(16)1.54%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)1.23%
Revenue beat(4)3
Avg Revenue beat(4)1.26%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)2.79%
Revenue beat(8)6
Avg Revenue beat(8)1.89%
Revenue beat(12)8
Avg Revenue beat(12)1.17%
Revenue beat(16)9
Avg Revenue beat(16)0.64%
PT rev (1m)2.07%
PT rev (3m)8.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)0%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.01 | ||
| Fwd PE | 28.98 | ||
| P/S | 6.87 | ||
| P/FCF | 47.08 | ||
| P/OCF | 39.31 | ||
| P/B | 7.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.61 |
EPS(TTM)11.64
EY2.94%
EPS(NY)13.66
Fwd EY3.45%
FCF(TTM)8.41
FCFY2.12%
OCF(TTM)10.07
OCFY2.54%
SpS57.64
BVpS52.85
TBVpS-3.11
PEG (NY)2.29
PEG (5Y)4.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 17.82% | ||
| ROCE | 13.36% | ||
| ROIC | 11.63% | ||
| ROICexc | 13.36% | ||
| ROICexgc | 41.45% | ||
| OM | 21.99% | ||
| PM (TTM) | 16.34% | ||
| GM | 63.88% | ||
| FCFM | 14.59% |
ROA(3y)6.69%
ROA(5y)6.33%
ROE(3y)14.87%
ROE(5y)14.62%
ROIC(3y)10.9%
ROIC(5y)10.57%
ROICexc(3y)11.93%
ROICexc(5y)11.87%
ROICexgc(3y)37.04%
ROICexgc(5y)36%
ROCE(3y)12.52%
ROCE(5y)12.15%
ROICexcg growth 3Y8.85%
ROICexcg growth 5Y-1.43%
ROICexc growth 3Y10.42%
ROICexc growth 5Y-1.74%
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%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.83 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 61.2% | ||
| Cap/Sales | 2.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.43% | ||
| Profit Quality | 89.28% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 5.34 |
F-Score6
WACC8.7%
ROIC/WACC1.34
Cap/Depr(3y)55.96%
Cap/Depr(5y)62.26%
Cap/Sales(3y)3.02%
Cap/Sales(5y)3.36%
Profit Quality(3y)107.58%
Profit Quality(5y)114.25%
High Growth Momentum
Growth
EPS 1Y (TTM)14.79%
EPS 3Y12.57%
EPS 5Y7.72%
EPS Q2Q%16.67%
EPS Next Y14.88%
EPS Next 2Y13.52%
EPS Next 3Y12.43%
EPS Next 5Y10.33%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y12.62%
Revenue growth 5Y8.55%
Sales Q2Q%11.92%
Revenue Next Year11.38%
Revenue Next 2Y9.72%
Revenue Next 3Y9.09%
Revenue Next 5Y8.37%
EBIT growth 1Y16.78%
EBIT growth 3Y14.09%
EBIT growth 5Y7.22%
EBIT Next Year27.45%
EBIT Next 3Y15.91%
EBIT Next 5Y13.95%
FCF growth 1Y59.06%
FCF growth 3Y3.97%
FCF growth 5Y9%
OCF growth 1Y46.47%
OCF growth 3Y4.23%
OCF growth 5Y7.29%