STRYKER CORP (SYK) Stock Fundamental Analysis
NYSE:SYK - New York Stock Exchange, Inc. - US8636671013 - Common Stock - Currency: USD
Overall SYK gets a fundamental rating of 6 out of 10. We evaluated SYK against 187 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
Each year in the past 5 years SYK has been profitable.
Each year in the past 5 years SYK had a positive operating cash flow.
1.2 Ratios
SYK has a Return On Assets of 6.21%. This is amongst the best in the industry. SYK outperforms 87.17% of its industry peers.
With an excellent Return On Equity value of 13.66%, SYK belongs to the best of the industry, outperforming 90.37% of the companies in the same industry.
SYK has a Return On Invested Capital of 11.71%. This is amongst the best in the industry. SYK outperforms 93.58% 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 7.89%.
The 3 year average ROIC (11.52%) for SYK is below the current ROIC(11.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 13.66% | ||
| ROIC | 11.71% |
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
Looking at the Profit Margin, with a value of 12.31%, SYK belongs to the top of the industry, outperforming 89.84% of the companies in the same industry.
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 22.35%, SYK belongs to the best of the industry, outperforming 93.58% 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.
SYK has a Gross Margin of 64.57%. This is in the better half of the industry: SYK outperforms 66.84% 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 | 22.35% | ||
| PM (TTM) | 12.31% | ||
| GM | 64.57% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SYK is creating some value.
Compared to 1 year ago, SYK has more shares outstanding
The number of shares outstanding for SYK has been increased compared to 5 years ago.
Compared to 1 year ago, SYK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.17 indicates that SYK is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.17, SYK is doing good in the industry, outperforming 75.94% of the companies in the same industry.
The Debt to FCF ratio of SYK is 4.69, which is a neutral value as it means it would take SYK, 4.69 years of fcf income to pay off all of its debts.
SYK has a Debt to FCF ratio of 4.69. This is amongst the best in the industry. SYK outperforms 82.35% of its industry peers.
SYK has a Debt/Equity ratio of 0.69. This is a neutral value indicating SYK is somewhat dependend on debt financing.
SYK has a worse Debt to Equity ratio (0.69) than 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 5.17 |
ROIC/WACC1.39
WACC8.41%
2.3 Liquidity
A Current Ratio of 1.64 indicates that SYK should not have too much problems paying its short term obligations.
The Current ratio of SYK (1.64) is worse than 72.73% of its industry peers.
SYK has a Quick Ratio of 1.64. This is a bad value and indicates that SYK is not financially healthy enough and could expect problems in meeting its short term obligations.
SYK's Quick ratio of 1.00 is on the low side compared to the rest of the industry. SYK is outperformed by 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.32% over the past year.
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 10.76% 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)14.32%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%13.6%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.88%
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 Y10.57%
EPS Next 2Y10.78%
EPS Next 3Y11.11%
EPS Next 5Y9.96%
Revenue Next Year9.63%
Revenue Next 2Y8.99%
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
With a Price/Earnings ratio of 31.27, SYK can be considered very expensive at the moment.
SYK's Price/Earnings ratio is a bit cheaper when compared to the industry. SYK is cheaper than 73.80% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. SYK is around the same levels.
Based on the Price/Forward Earnings ratio of 26.19, the valuation of SYK can be described as expensive.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than the industry average as 72.19% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SYK to the average of the S&P500 Index (21.76), we can say SYK is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.27 | ||
| Fwd PE | 26.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYK indicates a somewhat cheap valuation: SYK is cheaper than 71.12% of the companies listed in the same industry.
78.07% 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 | 41.86 | ||
| EV/EBITDA | 26.23 |
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.
The excellent profitability rating of SYK may justify a higher PE ratio.
PEG (NY)2.96
PEG (5Y)3.86
EPS Next 2Y10.78%
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 1.82. SYK pays more dividend than 92.51% 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of SYK is nicely growing with an annual growth rate of 9.04%!
SYK has been paying a dividend for at least 10 years, so it has 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)9.04%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
SYK pays out 43.20% of its income as dividend. 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.
DP43.2%
EPS Next 2Y10.78%
EPS Next 3Y11.11%
391.81
-4.93 (-1.24%)
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 Change2.02%
Ins Owners0.11%
Ins Owner Change4.34%
Market Cap149.73B
Analysts80
Price Target434.44 (10.88%)
Short Float %1.42%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend3.2
Dividend Growth(5Y)9.04%
DP43.2%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.36%
Min EPS beat(2)2.54%
Max EPS beat(2)4.19%
EPS beat(4)3
Avg EPS beat(4)2.25%
Min EPS beat(4)-0.26%
Max EPS beat(4)4.19%
EPS beat(8)7
Avg EPS beat(8)3.09%
EPS beat(12)9
Avg EPS beat(12)2.27%
EPS beat(16)11
Avg EPS beat(16)1.63%
Revenue beat(2)2
Avg Revenue beat(2)1%
Min Revenue beat(2)0.17%
Max Revenue beat(2)1.82%
Revenue beat(4)3
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)1.82%
Revenue beat(8)6
Avg Revenue beat(8)1.19%
Revenue beat(12)8
Avg Revenue beat(12)1.23%
Revenue beat(16)11
Avg Revenue beat(16)1%
PT rev (1m)-0.68%
PT rev (3m)-0.85%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-1.56%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.27 | ||
| Fwd PE | 26.19 | ||
| P/S | 6.45 | ||
| P/FCF | 41.86 | ||
| P/OCF | 34.92 | ||
| P/B | 7.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.23 |
EPS(TTM)12.53
EY3.2%
EPS(NY)14.96
Fwd EY3.82%
FCF(TTM)9.36
FCFY2.39%
OCF(TTM)11.22
OCFY2.86%
SpS60.75
BVpS54.77
TBVpS-11.23
PEG (NY)2.96
PEG (5Y)3.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 13.66% | ||
| ROCE | 13.63% | ||
| ROIC | 11.71% | ||
| ROICexc | 12.51% | ||
| ROICexgc | 42.69% | ||
| OM | 22.35% | ||
| PM (TTM) | 12.31% | ||
| GM | 64.57% | ||
| FCFM | 15.41% |
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-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 66.95% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.59% | ||
| Profit Quality | 125.11% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 5.17 |
F-Score4
WACC8.41%
ROIC/WACC1.39
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)14.32%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%13.6%
EPS Next Y10.57%
EPS Next 2Y10.78%
EPS Next 3Y11.11%
EPS Next 5Y9.96%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.88%
Revenue Next Year9.63%
Revenue Next 2Y8.99%
Revenue Next 3Y8.77%
Revenue Next 5Y8.2%
EBIT growth 1Y14.65%
EBIT growth 3Y12.96%
EBIT growth 5Y8.33%
EBIT Next Year25.23%
EBIT Next 3Y14.78%
EBIT Next 5Y13.73%
FCF growth 1Y57.79%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y49.62%
OCF growth 3Y9.14%
OCF growth 5Y14.13%