STRYKER CORP (SYK) Stock Fundamental Analysis
NYSE:SYK - New York Stock Exchange, Inc. - US8636671013 - Common Stock - Currency: USD
Taking everything into account, SYK scores 6 out of 10 in our fundamental rating. SYK was compared to 187 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 is not priced too expensively while it is growing strongly. 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.
SYK had positive earnings in each of the past 5 years.
Each year in the past 5 years SYK had a positive operating cash flow.
1.2 Ratios
SYK's Return On Assets of 6.30% is amongst the best of the industry. SYK outperforms 86.63% of its industry peers.
With an excellent Return On Equity value of 13.77%, SYK belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
The Return On Invested Capital of SYK (11.66%) is better than 93.05% 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 8.14%.
The 3 year average ROIC (11.52%) for SYK is below the current ROIC(11.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 13.77% | ||
| ROIC | 11.66% |
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
SYK has a better Profit Margin (12.25%) than 89.30% of its industry peers.
In the last couple of years the Profit Margin of SYK has remained more or less at the same level.
With an excellent Operating Margin value of 22.25%, SYK belongs to the best of the industry, outperforming 93.05% of the companies in the same industry.
SYK's Operating Margin has been stable in the last couple of years.
SYK has a better Gross Margin (64.62%) than 67.38% of its industry peers.
SYK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.25% | ||
| PM (TTM) | 12.25% | ||
| GM | 64.62% |
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.
Compared to 1 year ago, SYK has more shares outstanding
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
SYK has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as SYK would need 3.69 years to pay back of all of its debts.
SYK has a Debt to FCF ratio of 3.69. This is amongst the best in the industry. SYK outperforms 86.63% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that SYK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, SYK is not doing good in the industry: 69.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | N/A |
ROIC/WACC1.4
WACC8.34%
2.3 Liquidity
SYK has a Current Ratio of 1.78. 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 (1.78) than 70.05% of its industry peers.
SYK has a Quick Ratio of 1.06. 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 Quick ratio (1.06) than 75.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
SYK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.43%, which is quite good.
Measured over the past years, SYK 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 11.36% in the past year. This is quite good.
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)14.43%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%11.39%
Revenue 1Y (TTM)11.36%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.07%
3.2 Future
The Earnings Per Share is expected to grow by 9.96% on average over the next years. This is quite good.
SYK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.20% yearly.
EPS Next Y10.6%
EPS Next 2Y10.79%
EPS Next 3Y11.11%
EPS Next 5Y9.96%
Revenue Next Year9.68%
Revenue Next 2Y9.01%
Revenue Next 3Y8.77%
Revenue Next 5Y8.2%
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
A Price/Earnings ratio of 29.40 indicates a quite expensive valuation of SYK.
Compared to the rest of the industry, the Price/Earnings ratio of SYK indicates a somewhat cheap valuation: SYK is cheaper than 74.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SYK to the average of the S&P500 Index (26.82), we can say SYK is valued inline with the index average.
With a Price/Forward Earnings ratio of 25.25, SYK can be considered very expensive at the moment.
74.33% of the companies in the same industry are more expensive than SYK, based on the Price/Forward Earnings ratio.
SYK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.4 | ||
| Fwd PE | 25.25 |
4.2 Price Multiples
71.12% of the companies in the same industry are more expensive than SYK, based on the Enterprise Value to EBITDA ratio.
SYK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYK is cheaper than 78.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.88 | ||
| EV/EBITDA | 24.48 |
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)2.77
PEG (5Y)3.63
EPS Next 2Y10.79%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
SYK has a yearly dividend return of 0.86%, which is pretty low.
SYK's Dividend Yield is rather good when compared to the industry average which is at 1.91. SYK pays more dividend than 91.98% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of SYK is nicely growing with an annual growth rate of 9.03%!
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)9.03%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
SYK pays out 42.87% 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.
DP42.87%
EPS Next 2Y10.79%
EPS Next 3Y11.11%
377.79
-14.94 (-3.8%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.81%
Inst Owner Change-0.98%
Ins Owners0.11%
Ins Owner Change3.52%
Market Cap144.38B
Analysts80
Price Target435.38 (15.24%)
Short Float %1.32%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend3.2
Dividend Growth(5Y)9.03%
DP42.87%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.6%
Min EPS beat(2)1.01%
Max EPS beat(2)4.19%
EPS beat(4)4
Avg EPS beat(4)2.56%
Min EPS beat(4)1.01%
Max EPS beat(4)4.19%
EPS beat(8)7
Avg EPS beat(8)2.5%
EPS beat(12)10
Avg EPS beat(12)2.53%
EPS beat(16)11
Avg EPS beat(16)1.4%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)0.53%
Max Revenue beat(2)1.82%
Revenue beat(4)4
Avg Revenue beat(4)0.94%
Min Revenue beat(4)0.17%
Max Revenue beat(4)1.82%
Revenue beat(8)6
Avg Revenue beat(8)0.94%
Revenue beat(12)9
Avg Revenue beat(12)1.43%
Revenue beat(16)11
Avg Revenue beat(16)0.87%
PT rev (1m)0.22%
PT rev (3m)-0.01%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.4 | ||
| Fwd PE | 25.25 | ||
| P/S | 6.06 | ||
| P/FCF | 35.88 | ||
| P/OCF | 30.29 | ||
| P/B | 6.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.48 |
EPS(TTM)12.85
EY3.4%
EPS(NY)14.96
Fwd EY3.96%
FCF(TTM)10.53
FCFY2.79%
OCF(TTM)12.47
OCFY3.3%
SpS62.32
BVpS55.45
TBVpS-10.35
PEG (NY)2.77
PEG (5Y)3.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 13.77% | ||
| ROCE | 13.57% | ||
| ROIC | 11.66% | ||
| ROICexc | 12.45% | ||
| ROICexgc | 39.83% | ||
| OM | 22.25% | ||
| PM (TTM) | 12.25% | ||
| GM | 64.62% | ||
| FCFM | 16.89% |
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%
ROICexcg growth 3Y8.12%
ROICexcg 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 67.45% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.48% | ||
| Profit Quality | 137.9% | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | N/A |
F-Score5
WACC8.34%
ROIC/WACC1.4
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)14.43%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%11.39%
EPS Next Y10.6%
EPS Next 2Y10.79%
EPS Next 3Y11.11%
EPS Next 5Y9.96%
Revenue 1Y (TTM)11.36%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.07%
Revenue Next Year9.68%
Revenue Next 2Y9.01%
Revenue Next 3Y8.77%
Revenue Next 5Y8.2%
EBIT growth 1Y13.91%
EBIT growth 3Y12.96%
EBIT growth 5Y8.77%
EBIT Next Year25.23%
EBIT Next 3Y14.78%
EBIT Next 5Y13.73%
FCF growth 1Y66.49%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y57.55%
OCF growth 3Y9.14%
OCF growth 5Y14.13%