STRYKER CORP (SYK) Stock Fundamental Analysis
USA - NYSE:SYK - US8636671013 - Common Stock
383.34 USD
-5.45 (-1.4%)
383.34 USD
0 (0%)
SYK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 191 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 overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
SYK had positive earnings in the past year.
In the past year SYK had a positive cash flow from operations.
SYK had positive earnings in each of the past 5 years.
In the past 5 years SYK always reported a positive cash flow from operatings.
1.2 Ratios
SYK's Return On Assets of 6.30% is amongst the best of the industry. SYK outperforms 84.82% of its industry peers.
SYK's Return On Equity of 13.77% is amongst the best of the industry. SYK outperforms 90.05% of its industry peers.
SYK's Return On Invested Capital of 11.66% is amongst the best of the industry. SYK outperforms 92.15% 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 8.46%.
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 Profit Margin of 12.25%. This is amongst the best in the industry. SYK outperforms 88.48% of its industry peers.
SYK's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 22.25%, SYK belongs to the best of the industry, outperforming 93.19% of the companies in the same industry.
In the last couple of years the Operating Margin of SYK has remained more or less at the same level.
With a decent Gross Margin value of 64.62%, SYK is doing good in the industry, outperforming 68.06% of the companies in the same industry.
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
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.
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
The Debt to FCF ratio of SYK is 3.69, which is a good value as it means it would take SYK, 3.69 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.69, SYK belongs to the top of the industry, outperforming 84.82% of the companies in the same industry.
SYK has a Debt/Equity ratio of 0.70. This is a neutral value indicating SYK is somewhat dependend on debt financing.
SYK has a Debt to Equity ratio of 0.70. This is in the lower half of the industry: SYK underperforms 71.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC8.19%
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.
Looking at the Current ratio, with a value of 1.78, SYK is doing worse than 68.06% of the companies in the same industry.
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 73.30% 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.
The Earnings Per Share has been growing by 8.09% on average over the past years. This is quite good.
Looking at the last year, SYK shows a quite strong growth in Revenue. The Revenue has grown by 11.36% 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)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
Based on estimates for the next years, SYK will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.13% on average per year.
Based on estimates for the next years, SYK will show a quite strong growth in Revenue. The Revenue will grow by 8.40% on average per year.
EPS Next Y11.79%
EPS Next 2Y11.28%
EPS Next 3Y11.14%
EPS Next 5Y10.13%
Revenue Next Year10.66%
Revenue Next 2Y9.58%
Revenue Next 3Y9.14%
Revenue Next 5Y8.4%
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
A Price/Earnings ratio of 29.83 indicates a quite expensive valuation of SYK.
SYK's Price/Earnings ratio is a bit cheaper when compared to the industry. SYK is cheaper than 73.82% of the companies in the same industry.
SYK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
SYK is valuated quite expensively with a Price/Forward Earnings ratio of 25.39.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than 73.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. SYK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.83 | ||
| Fwd PE | 25.39 |
4.2 Price Multiples
72.77% of the companies in the same industry are more expensive than SYK, based on the Enterprise Value to EBITDA ratio.
78.53% 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 | 36.42 | ||
| EV/EBITDA | 24.82 |
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)2.53
PEG (5Y)3.69
EPS Next 2Y11.28%
EPS Next 3Y11.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, SYK is not a good candidate for dividend investing.
SYK's Dividend Yield is rather good when compared to the industry average which is at 1.69. SYK pays more dividend than 92.15% of the companies in the same industry.
With a Dividend Yield of 0.86, SYK pays less dividend than the S&P500 average, which is at 2.41.
| 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 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
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 2Y11.28%
EPS Next 3Y11.14%
383.34
-5.45 (-1.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.8%
Inst Owner Change0.4%
Ins Owners0.11%
Ins Owner Change-1.83%
Market Cap146.55B
Analysts80.54
Price Target442.48 (15.43%)
Short Float %1.17%
Short Ratio3.33
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)0.19%
PT rev (3m)1.99%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)1.08%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.83 | ||
| Fwd PE | 25.39 | ||
| P/S | 6.15 | ||
| P/FCF | 36.42 | ||
| P/OCF | 30.75 | ||
| P/B | 6.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.82 |
EPS(TTM)12.85
EY3.35%
EPS(NY)15.1
Fwd EY3.94%
FCF(TTM)10.53
FCFY2.75%
OCF(TTM)12.47
OCFY3.25%
SpS62.3
BVpS55.43
TBVpS-10.34
PEG (NY)2.53
PEG (5Y)3.69
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
WACC8.19%
ROIC/WACC1.42
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 Y11.79%
EPS Next 2Y11.28%
EPS Next 3Y11.14%
EPS Next 5Y10.13%
Revenue 1Y (TTM)11.36%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.07%
Revenue Next Year10.66%
Revenue Next 2Y9.58%
Revenue Next 3Y9.14%
Revenue Next 5Y8.4%
EBIT growth 1Y13.91%
EBIT growth 3Y12.96%
EBIT growth 5Y8.77%
EBIT Next Year26.46%
EBIT Next 3Y15.12%
EBIT Next 5Y13.72%
FCF growth 1Y66.49%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y57.55%
OCF growth 3Y9.14%
OCF growth 5Y14.13%