STRYKER CORP (SYK) Stock Fundamental Analysis
NYSE:SYK - US8636671013 - Common Stock
394.22 USD
+9.39 (+2.44%)
394.22 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SYK. SYK was compared to 185 industry peers in the Health Care Equipment & Supplies industry. SYK has an excellent profitability rating, but 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
In the past year SYK was profitable.
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
Looking at the Return On Assets, with a value of 6.30%, SYK belongs to the top of the industry, outperforming 84.49% of the companies in the same industry.
SYK has a Return On Equity of 13.77%. This is amongst the best in the industry. SYK outperforms 89.84% of its industry peers.
SYK has a better Return On Invested Capital (11.66%) than 91.98% 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 8.44%.
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
Looking at the Profit Margin, with a value of 12.25%, SYK belongs to the top of the industry, outperforming 87.70% 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 93.05% of its industry peers.
SYK's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 64.62%, SYK is doing good in the industry, outperforming 67.91% 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
SYK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for SYK has been reduced compared to a year ago.
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's Debt to FCF ratio of 3.69 is amongst the best of the industry. SYK outperforms 84.49% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that SYK is somewhat dependend on debt financing.
The Debt to Equity ratio of SYK (0.70) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | N/A |
ROIC/WACC1.39
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.78 indicates that SYK should not have too much problems paying its short term obligations.
SYK has a Current ratio of 1.78. This is in the lower half of the industry: SYK underperforms 68.98% 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 74.33% of its industry peers.
| 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.
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 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.
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 Y11.79%
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.
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
With a Price/Earnings ratio of 30.68, 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/Earnings ratio.
SYK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
SYK is valuated quite expensively with a Price/Forward Earnings ratio of 26.11.
SYK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SYK is cheaper than 73.80% of the companies in the same industry.
SYK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.68 | ||
| Fwd PE | 26.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYK is valued a bit cheaper than the industry average as 72.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SYK is valued a bit cheaper than 78.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.45 | ||
| EV/EBITDA | 25.47 |
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)2.6
PEG (5Y)3.79
EPS Next 2Y11.28%
EPS Next 3Y11.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, SYK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.74, SYK pays a better dividend. On top of this SYK pays more dividend than 92.51% of the companies listed in the same industry.
With a Dividend Yield of 0.87, SYK pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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 2Y11.28%
EPS Next 3Y11.14%
394.22
+9.39 (+2.44%)
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 Change0.39%
Ins Owners0.11%
Ins Owner Change3.74%
Market Cap150.71B
Analysts80
Price Target442.41 (12.22%)
Short Float %1.36%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)1.61%
PT rev (3m)1.15%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)1.08%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.68 | ||
| Fwd PE | 26.11 | ||
| P/S | 6.33 | ||
| P/FCF | 37.45 | ||
| P/OCF | 31.62 | ||
| P/B | 7.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.47 |
EPS(TTM)12.85
EY3.26%
EPS(NY)15.1
Fwd EY3.83%
FCF(TTM)10.53
FCFY2.67%
OCF(TTM)12.47
OCFY3.16%
SpS62.3
BVpS55.43
TBVpS-10.34
PEG (NY)2.6
PEG (5Y)3.79
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
WACC8.39%
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)14.43%
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%