STRYKER CORP (1SYK.MI) Stock Fundamental Analysis
BIT:1SYK - Euronext Milan - US8636671013 - Common Stock - Currency: EUR
1SYK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Health Care Equipment & Supplies industry. While 1SYK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1SYK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1SYK was profitable.
In the past year 1SYK had a positive cash flow from operations.
1SYK had positive earnings in each of the past 5 years.
1SYK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1SYK has a Return On Assets of 6.97%. This is in the better half of the industry: 1SYK outperforms 76.19% of its industry peers.
1SYK has a better Return On Equity (14.51%) than 82.54% of its industry peers.
1SYK's Return On Invested Capital of 12.25% is amongst the best of the industry. 1SYK outperforms 92.06% of its industry peers.
1SYK had an Average Return On Invested Capital over the past 3 years of 11.52%. This is above the industry average of 8.47%.
The 3 year average ROIC (11.52%) for 1SYK 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
1SYK's Profit Margin of 13.25% is amongst the best of the industry. 1SYK outperforms 80.95% of its industry peers.
In the last couple of years the Profit Margin of 1SYK has remained more or less at the same level.
The Operating Margin of 1SYK (22.31%) is better than 87.30% of its industry peers.
1SYK's Operating Margin has been stable in the last couple of years.
1SYK has a Gross Margin of 64.26%. This is in the better half of the industry: 1SYK outperforms 60.32% of its industry peers.
1SYK's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1SYK is still creating some value.
The number of shares outstanding for 1SYK has been increased compared to 1 year ago.
The number of shares outstanding for 1SYK has been increased compared to 5 years ago.
1SYK has a better debt/assets ratio than last year.
2.2 Solvency
1SYK has an Altman-Z score of 5.65. This indicates that 1SYK is financially healthy and has little risk of bankruptcy at the moment.
1SYK's Altman-Z score of 5.65 is amongst the best of the industry. 1SYK outperforms 85.71% of its industry peers.
The Debt to FCF ratio of 1SYK is 3.90, which is a good value as it means it would take 1SYK, 3.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.90, 1SYK is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that 1SYK is somewhat dependend on debt financing.
1SYK has a worse Debt to Equity ratio (0.59) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.9 | ||
| Altman-Z | 5.65 |
ROIC/WACC1.43
WACC8.56%
2.3 Liquidity
1SYK has a Current Ratio of 1.95. This is a normal value and indicates that 1SYK is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.95, 1SYK is doing good in the industry, outperforming 60.32% of the companies in the same industry.
1SYK has a Quick Ratio of 1.32. This is a normal value and indicates that 1SYK is financially healthy and should not expect problems in meeting its short term obligations.
1SYK's Quick ratio of 1.32 is fine compared to the rest of the industry. 1SYK outperforms 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.00% over the past year.
Measured over the past years, 1SYK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.09% on average per year.
The Revenue has grown by 10.23% in the past year. This is quite good.
1SYK 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
The Earnings Per Share is expected to grow by 11.22% on average over the next years. This is quite good.
1SYK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.96% yearly.
EPS Next Y12.21%
EPS Next 2Y11.24%
EPS Next 3Y11.54%
EPS Next 5Y11.22%
Revenue Next Year8.24%
Revenue Next 2Y8.11%
Revenue Next 3Y8.09%
Revenue Next 5Y7.96%
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
1SYK is valuated quite expensively with a Price/Earnings ratio of 31.48.
Based on the Price/Earnings ratio, 1SYK is valued a bit cheaper than the industry average as 60.32% of the companies are valued more expensively.
1SYK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.46.
With a Price/Forward Earnings ratio of 28.06, 1SYK can be considered very expensive at the moment.
1SYK's Price/Forward Earnings ratio is in line with the industry average.
1SYK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.48 | ||
| Fwd PE | 28.06 |
4.2 Price Multiples
1SYK's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1SYK is valued a bit cheaper than the industry average as 63.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.96 | ||
| EV/EBITDA | 25.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1SYK may justify a higher PE ratio.
PEG (NY)2.58
PEG (5Y)3.89
EPS Next 2Y11.24%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, 1SYK is not a good candidate for dividend investing.
1SYK's Dividend Yield is a higher than the industry average which is at 2.34.
With a Dividend Yield of 0.87, 1SYK pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
On average, the dividend of 1SYK grows each year by 9.04%, which is quite nice.
Dividend Growth(5Y)9.04%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1SYK pays out 40.73% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1SYK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.73%
EPS Next 2Y11.24%
EPS Next 3Y11.54%
BIT:1SYK (5/30/2025, 7:00:00 PM)
337.1
-31.3 (-8.5%)
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 ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap128.51B
Analysts79.44
Price Target394.17 (16.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend3.2
Dividend Growth(5Y)9.04%
DP40.73%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
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)-0.96%
PT rev (3m)10.23%
EPS NQ rev (1m)-3.48%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.48 | ||
| Fwd PE | 28.06 | ||
| P/S | 6.48 | ||
| P/FCF | 41.96 | ||
| P/OCF | 34.49 | ||
| P/B | 7.09 | ||
| P/tB | 381.04 | ||
| EV/EBITDA | 25.38 |
EPS(TTM)10.71
EY3.18%
EPS(NY)12.01
Fwd EY3.56%
FCF(TTM)8.03
FCFY2.38%
OCF(TTM)9.77
OCFY2.9%
SpS52.06
BVpS47.54
TBVpS0.88
PEG (NY)2.58
PEG (5Y)3.89
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 | 5.65 |
F-Score6
WACC8.56%
ROIC/WACC1.43
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 Y12.21%
EPS Next 2Y11.24%
EPS Next 3Y11.54%
EPS Next 5Y11.22%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.68%
Revenue Next Year8.24%
Revenue Next 2Y8.11%
Revenue Next 3Y8.09%
Revenue Next 5Y7.96%
EBIT growth 1Y15.22%
EBIT growth 3Y12.96%
EBIT growth 5Y8.33%
EBIT Next Year24.01%
EBIT Next 3Y14.66%
EBIT Next 5Y12.91%
FCF growth 1Y11.19%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y14.31%
OCF growth 3Y9.14%
OCF growth 5Y14.13%