STRYKER CORP (SYK) Stock Fundamental Analysis
USA - NYSE:SYK - US8636671013 - Common Stock
355.02 USD
-1.01 (-0.28%)
354.5 USD
-0.52 (-0.15%)
We assign a fundamental rating of 6 out of 10 to SYK. SYK was compared to 189 industry peers in the Health Care Equipment & Supplies industry. While SYK has a great profitability rating, 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.
In the past 5 years SYK has always been profitable.
Each year in the past 5 years SYK had a positive operating cash flow.
1.2 Ratios
SYK has a better Return On Assets (6.25%) than 84.66% of its industry peers.
With an excellent Return On Equity value of 13.51%, SYK belongs to the best of the industry, outperforming 89.95% of the companies in the same industry.
SYK's Return On Invested Capital of 11.70% is amongst the best of the industry. SYK outperforms 92.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYK is above the industry average of 9.06%.
The last Return On Invested Capital (11.70%) for SYK is above the 3 year average (11.52%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 12.07%, SYK belongs to the top of the industry, outperforming 87.83% 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.
Looking at the Operating Margin, with a value of 22.14%, SYK belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
SYK's Operating Margin has been stable in the last couple of years.
SYK has a better Gross Margin (64.59%) than 68.25% 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 | 22.14% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SYK is still 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.
Compared to 1 year ago, SYK has an improved debt to assets ratio.
2.2 Solvency
SYK has a debt to FCF ratio of 3.64. This is a good value and a sign of high solvency as SYK would need 3.64 years to pay back of all of its debts.
The Debt to FCF ratio of SYK (3.64) is better than 83.07% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that SYK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, SYK is not doing good in the industry: 68.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC8.2%
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 67.20% 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 has a Quick ratio of 1.13. This is in the lower half of the industry: SYK underperforms 72.49% 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.
Measured over the past years, SYK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.09% on average per year.
SYK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.95%.
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
Based on estimates for the next years, SYK will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.06% on average per year.
SYK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.42% yearly.
EPS Next Y11.17%
EPS Next 2Y10.9%
EPS Next 3Y11.02%
EPS Next 5Y10.06%
Revenue Next Year10.86%
Revenue Next 2Y9.71%
Revenue Next 3Y9.25%
Revenue Next 5Y8.42%
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
SYK is valuated quite expensively with a Price/Earnings ratio of 26.96.
74.60% of the companies in the same industry are more expensive than SYK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SYK to the average of the S&P500 Index (26.28), we can say SYK is valued inline with the index average.
SYK is valuated rather expensively with a Price/Forward Earnings ratio of 23.68.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than 75.66% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SYK to the average of the S&P500 Index (33.61), we can say SYK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.96 | ||
| Fwd PE | 23.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYK is valued a bit cheaper than the industry average as 73.55% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SYK is valued a bit cheaper than the industry average as 78.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.32 | ||
| EV/EBITDA | 22.56 |
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)2.41
PEG (5Y)3.33
EPS Next 2Y10.9%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
SYK has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 1.91, SYK pays a better dividend. On top of this SYK pays more dividend than 92.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of SYK grows each year by 9.03%, which is quite nice.
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
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 2Y10.9%
EPS Next 3Y11.02%
355.02
-1.01 (-0.28%)
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 Change-0.84%
Ins Owners0.11%
Ins Owner Change0.16%
Market Cap135.73B
Revenue(TTM)24.38B
Net Income(TTM)2.94B
Analysts80
Price Target439.53 (23.8%)
Short Float %1.04%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend3.2
Dividend Growth(5Y)9.03%
DP43.09%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.92%
Min EPS beat(2)0.82%
Max EPS beat(2)1.01%
EPS beat(4)4
Avg EPS beat(4)2.14%
Min EPS beat(4)0.82%
Max EPS beat(4)4.19%
EPS beat(8)7
Avg EPS beat(8)2.59%
EPS beat(12)11
Avg EPS beat(12)3.09%
EPS beat(16)12
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)0.53%
Revenue beat(4)3
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)1.82%
Revenue beat(8)6
Avg Revenue beat(8)0.85%
Revenue beat(12)9
Avg Revenue beat(12)1.4%
Revenue beat(16)11
Avg Revenue beat(16)0.98%
PT rev (1m)-0.47%
PT rev (3m)-0.48%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.96 | ||
| Fwd PE | 23.68 | ||
| P/S | 5.57 | ||
| P/FCF | 33.32 | ||
| P/OCF | 28.09 | ||
| P/B | 6.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.56 |
EPS(TTM)13.17
EY3.71%
EPS(NY)14.99
Fwd EY4.22%
FCF(TTM)10.65
FCFY3%
OCF(TTM)12.64
OCFY3.56%
SpS63.77
BVpS56.98
TBVpS-8.67
PEG (NY)2.41
PEG (5Y)3.33
Graham Number129.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.25% | ||
| ROE | 13.51% | ||
| ROCE | 13.62% | ||
| ROIC | 11.7% | ||
| ROICexc | 12.78% | ||
| ROICexgc | 41.43% | ||
| OM | 22.14% | ||
| PM (TTM) | 12.07% | ||
| GM | 64.59% | ||
| FCFM | 16.71% |
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%
ROICexgc growth 3Y8.12%
ROICexgc 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 66.52% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.88% | ||
| Profit Quality | 138.4% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | N/A |
F-Score5
WACC8.2%
ROIC/WACC1.43
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)13.14%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%11.15%
EPS Next Y11.17%
EPS Next 2Y10.9%
EPS Next 3Y11.02%
EPS Next 5Y10.06%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%10.25%
Revenue Next Year10.86%
Revenue Next 2Y9.71%
Revenue Next 3Y9.25%
Revenue Next 5Y8.42%
EBIT growth 1Y11.5%
EBIT growth 3Y12.96%
EBIT growth 5Y8.77%
EBIT Next Year27.1%
EBIT Next 3Y15.42%
EBIT Next 5Y13.27%
FCF growth 1Y58.61%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y51.66%
OCF growth 3Y9.14%
OCF growth 5Y14.13%
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 for 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.
How financially healthy is STRYKER CORP?
The financial health rating of STRYKER CORP (SYK) is 4 / 10.
Is the dividend of STRYKER CORP sustainable?
The dividend rating of STRYKER CORP (SYK) is 6 / 10 and the dividend payout ratio is 43.09%.