STRYKER CORP (SYK) Stock Fundamental Analysis
USA - NYSE:SYK - US8636671013 - Common Stock
370.5 USD
+4.1 (+1.12%)
370.5 USD
0 (0%)
Taking everything into account, SYK scores 6 out of 10 in our fundamental rating. SYK was compared to 191 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 growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year SYK was profitable.
SYK had a positive operating cash flow in the past year.
Each year in the past 5 years SYK has been profitable.
SYK had a positive operating cash flow in each of the past 5 years.
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.
With an excellent Return On Equity value of 13.77%, SYK belongs to the best of the industry, outperforming 90.05% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.66%, SYK belongs to the best of the industry, outperforming 91.62% of the companies in the same industry.
SYK had an Average Return On Invested Capital over the past 3 years of 11.52%. This is above the industry average of 8.97%.
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
With an excellent Profit Margin value of 12.25%, SYK belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
SYK's Profit Margin has been stable in the last couple of years.
SYK has a Operating Margin of 22.25%. This is amongst the best in the industry. SYK outperforms 93.19% of its industry peers.
In the last couple of years the Operating Margin of SYK has remained more or less at the same level.
Looking at the Gross Margin, with a value of 64.62%, SYK is in the better half of 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.
The number of shares outstanding for SYK has been increased compared to 1 year ago.
SYK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SYK has been reduced compared to a year ago.
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.
With an excellent Debt to FCF ratio value of 3.69, SYK belongs to the best of the industry, outperforming 83.77% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that SYK is somewhat dependend on debt financing.
SYK's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. SYK is outperformed by 69.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC8.24%
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 68.59% of its industry peers.
A Quick Ratio of 1.06 indicates that SYK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.06, SYK is doing worse than 73.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.43% 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 11.36% in the last year.
Measured over the past years, SYK shows a quite strong growth in Revenue. The Revenue has been growing by 8.71% on average per year.
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
SYK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.13% yearly.
SYK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.40% yearly.
EPS Next Y11.82%
EPS Next 2Y11.33%
EPS Next 3Y11.22%
EPS Next 5Y10.13%
Revenue Next Year10.63%
Revenue Next 2Y9.54%
Revenue Next 3Y9.14%
Revenue Next 5Y8.4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.83, which means the current valuation is very expensive for SYK.
Based on the Price/Earnings ratio, SYK is valued a bit cheaper than the industry average as 74.87% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.86, SYK is valued at the same level.
SYK is valuated rather expensively with a Price/Forward Earnings ratio of 24.52.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than 76.44% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. SYK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.83 | ||
| Fwd PE | 24.52 |
4.2 Price Multiples
73.30% of the companies in the same industry are more expensive than SYK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SYK is valued a bit cheaper than the industry average as 79.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.2 | ||
| EV/EBITDA | 24.05 |
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 SYK may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)3.56
EPS Next 2Y11.33%
EPS Next 3Y11.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, 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 1.79. SYK pays more dividend than 92.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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.
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.
DP42.87%
EPS Next 2Y11.33%
EPS Next 3Y11.22%
370.5
+4.1 (+1.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.52%
Inst Owner Change0.4%
Ins Owners0.11%
Ins Owner Change0.44%
Market Cap141.65B
Analysts80
Price Target441.61 (19.19%)
Short Float %1.28%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)-0.18%
PT rev (3m)1.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.83 | ||
| Fwd PE | 24.52 | ||
| P/S | 5.95 | ||
| P/FCF | 35.2 | ||
| P/OCF | 29.72 | ||
| P/B | 6.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.05 |
EPS(TTM)12.85
EY3.47%
EPS(NY)15.11
Fwd EY4.08%
FCF(TTM)10.53
FCFY2.84%
OCF(TTM)12.47
OCFY3.36%
SpS62.3
BVpS55.43
TBVpS-10.34
PEG (NY)2.44
PEG (5Y)3.56
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
WACC8.24%
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 Y11.82%
EPS Next 2Y11.33%
EPS Next 3Y11.22%
EPS Next 5Y10.13%
Revenue 1Y (TTM)11.36%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.07%
Revenue Next Year10.63%
Revenue Next 2Y9.54%
Revenue Next 3Y9.14%
Revenue Next 5Y8.4%
EBIT growth 1Y13.91%
EBIT growth 3Y12.96%
EBIT growth 5Y8.77%
EBIT Next Year27.1%
EBIT Next 3Y15.42%
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%