STRYKER CORP (SYK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYK - US8636671013 - Common Stock
358.67 USD
-4.27 (-1.18%)
359.1 USD
+0.43 (+0.12%)
We assign a fundamental rating of 6 out of 10 to SYK. SYK was compared to 186 industry peers in the Health Care Equipment & Supplies industry. SYK scores excellent on profitability, but 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
- The Return On Assets of SYK (6.25%) is better than 85.48% of its industry peers.
- The Return On Equity of SYK (13.51%) is better than 89.78% of its industry peers.
- The Return On Invested Capital of SYK (11.70%) is better than 91.94% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SYK is above the industry average of 8.84%.
- The 3 year average ROIC (11.52%) for SYK is below the current ROIC(11.70%), indicating increased profibility in the last year.
| 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
- SYK has a better Profit Margin (12.07%) than 87.10% 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 has a better Operating Margin (22.14%) than 93.55% 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 better Gross Margin (64.59%) than 68.82% of its industry peers.
- SYK's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SYK is creating some value.
- SYK has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SYK has more shares outstanding
- SYK has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of SYK is 3.64, which is a good value as it means it would take SYK, 3.64 years of fcf income to pay off all of its debts.
- SYK has a better Debt to FCF ratio (3.64) than 81.18% of its industry peers.
- A Debt/Equity ratio of 0.68 indicates that SYK is somewhat dependend on debt financing.
- SYK has a worse Debt to Equity ratio (0.68) than 67.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.2
WACC9.79%
2.3 Liquidity
- A Current Ratio of 1.85 indicates that SYK should not have too much problems paying its short term obligations.
- SYK has a Current ratio of 1.85. This is in the lower half of the industry: SYK underperforms 65.05% of its industry peers.
- A Quick Ratio of 1.13 indicates that SYK should not have too much problems paying its short term obligations.
- SYK's Quick ratio of 1.13 is on the low side compared to the rest of the industry. SYK is outperformed by 72.04% 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.
- SYK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.09% yearly.
- Looking at the last year, SYK shows a quite strong growth in Revenue. The Revenue has grown by 10.95% in the last year.
- 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)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 10.14% 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 8.47% yearly.
EPS Next Y12.33%
EPS Next 2Y11.42%
EPS Next 3Y11.59%
EPS Next 5Y10.14%
Revenue Next Year10.93%
Revenue Next 2Y9.76%
Revenue Next 3Y9.33%
Revenue Next 5Y8.47%
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
- SYK is valuated quite expensively with a Price/Earnings ratio of 27.23.
- SYK's Price/Earnings ratio is a bit cheaper when compared to the industry. SYK is cheaper than 76.88% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, SYK is valued at the same level.
- SYK is valuated rather expensively with a Price/Forward Earnings ratio of 23.70.
- 77.96% of the companies in the same industry are more expensive than SYK, based on the Price/Forward Earnings ratio.
- SYK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.23 | ||
| Fwd PE | 23.7 |
4.2 Price Multiples
- SYK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SYK is cheaper than 74.73% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SYK is valued a bit cheaper than 78.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.68 | ||
| EV/EBITDA | 22.72 |
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.
PEG (NY)2.21
PEG (5Y)3.36
EPS Next 2Y11.42%
EPS Next 3Y11.59%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.97%, SYK is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.19, SYK pays a better dividend. On top of this SYK pays more dividend than 93.55% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
- The dividend of SYK is nicely growing with an annual growth rate of 9.03%!
- SYK has paid a dividend for at least 10 years, which is 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
- 43.09% of the earnings are spent on dividend by SYK. 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 2Y11.42%
EPS Next 3Y11.59%
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 of STRYKER CORP (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.
What are the PE and PB ratios of STRYKER CORP (SYK) stock?
The Price/Earnings (PE) ratio for STRYKER CORP (SYK) is 27.23 and the Price/Book (PB) ratio is 6.3.
Can you provide the financial health for SYK stock?
The financial health rating of STRYKER CORP (SYK) is 4 / 10.