STRYKER CORP (SYK) Stock Fundamental Analysis
NYSE:SYK - New York Stock Exchange, Inc. - US8636671013 - Common Stock - Currency: USD
SYK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 190 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 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.
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
SYK's Return On Assets of 6.97% is amongst the best of the industry. SYK outperforms 88.42% of its industry peers.
SYK has a Return On Equity of 14.51%. This is amongst the best in the industry. SYK outperforms 90.53% of its industry peers.
With an excellent Return On Invested Capital value of 12.25%, SYK belongs to the best of the industry, outperforming 94.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SYK is above the industry average of 7.68%.
The 3 year average ROIC (11.52%) for SYK is below the current ROIC(12.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.51% | ||
| ROIC | 12.25% |
ROA(3y)7.1%
ROA(5y)6.34%
ROE(3y)15.24%
ROE(5y)14.27%
ROIC(3y)11.52%
ROIC(5y)10.64%
1.3 Margins
The Profit Margin of SYK (13.25%) is better than 90.53% of its industry peers.
In the last couple of years the Profit Margin of SYK has remained more or less at the same level.
SYK's Operating Margin of 22.31% is amongst the best of the industry. SYK outperforms 94.21% 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 has a Gross Margin of 64.26%. This is in the better half of the industry: SYK outperforms 64.74% 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 | 22.31% | ||
| PM (TTM) | 13.25% | ||
| GM | 64.26% |
OM growth 3Y2.95%
OM growth 5Y-0.35%
PM growth 3Y4.36%
PM growth 5Y-1.09%
GM growth 3Y-0.02%
GM growth 5Y-0.49%
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.
Compared to 1 year ago, SYK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.27 indicates that SYK is not in any danger for bankruptcy at the moment.
SYK has a better Altman-Z score (5.27) than 81.58% of its industry peers.
The Debt to FCF ratio of SYK is 3.90, which is a good value as it means it would take SYK, 3.90 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.90, SYK belongs to the best of the industry, outperforming 85.26% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that SYK is somewhat dependend on debt financing.
SYK's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. SYK is outperformed by 64.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.9 | ||
| Altman-Z | 5.27 |
ROIC/WACC1.41
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.95 indicates that SYK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.95, SYK is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
SYK has a Quick Ratio of 1.32. 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 Quick ratio of 1.32. This is in the lower half of the industry: SYK underperforms 66.84% of its industry peers.
SYK does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
SYK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.00%, which is quite good.
The Earnings Per Share has been growing by 8.09% on average over the past years. This is quite good.
SYK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.23%.
SYK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.71% yearly.
EPS 1Y (TTM)15%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%15.9%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.68%
3.2 Future
SYK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.92% yearly.
The Revenue is expected to grow by 7.76% on average over the next years.
EPS Next Y10.69%
EPS Next 2Y9.69%
EPS Next 3Y10.08%
EPS Next 5Y9.92%
Revenue Next Year8.85%
Revenue Next 2Y8.14%
Revenue Next 3Y8.21%
Revenue Next 5Y7.76%
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 28.42, which means the current valuation is very expensive for SYK.
Based on the Price/Earnings ratio, SYK is valued a bit cheaper than 74.21% of the companies in the same industry.
SYK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 25.68 indicates a quite expensive valuation of SYK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SYK indicates a somewhat cheap valuation: SYK is cheaper than 75.26% of the companies listed in the same industry.
SYK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.42 | ||
| Fwd PE | 25.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYK is valued a bit cheaper than the industry average as 72.63% of the companies are valued more expensively.
76.84% of the companies in the same industry are more expensive than SYK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.93 | ||
| EV/EBITDA | 23.07 |
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)2.66
PEG (5Y)3.51
EPS Next 2Y9.69%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
SYK has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 1.94, SYK pays a better dividend. On top of this SYK pays more dividend than 92.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
On average, the dividend of SYK grows each year by 9.04%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.04%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
40.73% of the earnings are spent on dividend by SYK. 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.
DP40.73%
EPS Next 2Y9.69%
EPS Next 3Y10.08%
346.5
-0.17 (-0.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners79.74%
Inst Owner Change0.01%
Ins Owners0.1%
Ins Owner Change4.31%
Market Cap132.26B
Analysts80
Price Target437.44 (26.25%)
Short Float %1.32%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend3.2
Dividend Growth(5Y)9.04%
DP40.73%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.53%
Min EPS beat(2)2.52%
Max EPS beat(2)2.54%
EPS beat(4)3
Avg EPS beat(4)2.48%
Min EPS beat(4)-0.26%
Max EPS beat(4)5.12%
EPS beat(8)7
Avg EPS beat(8)3.29%
EPS beat(12)9
Avg EPS beat(12)1.94%
EPS beat(16)10
Avg EPS beat(16)1.12%
Revenue beat(2)2
Avg Revenue beat(2)0.7%
Min Revenue beat(2)0.17%
Max Revenue beat(2)1.23%
Revenue beat(4)3
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)1.73%
Revenue beat(8)6
Avg Revenue beat(8)1.43%
Revenue beat(12)8
Avg Revenue beat(12)1.17%
Revenue beat(16)10
Avg Revenue beat(16)0.81%
PT rev (1m)-0.03%
PT rev (3m)4.37%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-5.28%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.42 | ||
| Fwd PE | 25.68 | ||
| P/S | 5.85 | ||
| P/FCF | 37.93 | ||
| P/OCF | 31.18 | ||
| P/B | 6.41 | ||
| P/tB | 344.42 | ||
| EV/EBITDA | 23.07 |
EPS(TTM)12.19
EY3.52%
EPS(NY)13.49
Fwd EY3.89%
FCF(TTM)9.14
FCFY2.64%
OCF(TTM)11.11
OCFY3.21%
SpS59.2
BVpS54.06
TBVpS1.01
PEG (NY)2.66
PEG (5Y)3.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.51% | ||
| ROCE | 14.26% | ||
| ROIC | 12.25% | ||
| ROICexc | 14.04% | ||
| ROICexgc | 40.82% | ||
| OM | 22.31% | ||
| PM (TTM) | 13.25% | ||
| GM | 64.26% | ||
| FCFM | 15.43% |
ROA(3y)7.1%
ROA(5y)6.34%
ROE(3y)15.24%
ROE(5y)14.27%
ROIC(3y)11.52%
ROIC(5y)10.64%
ROICexc(3y)12.76%
ROICexc(5y)11.81%
ROICexgc(3y)39.42%
ROICexgc(5y)36.5%
ROCE(3y)13.4%
ROCE(5y)12.38%
ROICexcg growth 3Y8.12%
ROICexcg growth 5Y2.5%
ROICexc growth 3Y8.12%
ROICexc growth 5Y0.63%
OM growth 3Y2.95%
OM growth 5Y-0.35%
PM growth 3Y4.36%
PM growth 5Y-1.09%
GM growth 3Y-0.02%
GM growth 5Y-0.49%
F-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.9 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 71.9% | ||
| Cap/Sales | 3.34% | ||
| Interest Coverage | 12.73 | ||
| Cash Conversion | 69.64% | ||
| Profit Quality | 116.51% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 5.27 |
F-Score6
WACC8.69%
ROIC/WACC1.41
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)15%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%15.9%
EPS Next Y10.69%
EPS Next 2Y9.69%
EPS Next 3Y10.08%
EPS Next 5Y9.92%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.68%
Revenue Next Year8.85%
Revenue Next 2Y8.14%
Revenue Next 3Y8.21%
Revenue Next 5Y7.76%
EBIT growth 1Y15.22%
EBIT growth 3Y12.96%
EBIT growth 5Y8.33%
EBIT Next Year25.58%
EBIT Next 3Y14.44%
EBIT Next 5Y11.56%
FCF growth 1Y11.19%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y14.31%
OCF growth 3Y9.14%
OCF growth 5Y14.13%