STRYKER CORP (SYK)
US8636671013 - Common Stock
SYK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 192 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years SYK always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SYK (7.93%) is better than 89.06% of its industry peers.
The Return On Equity of SYK (17.02%) is better than 92.19% of its industry peers.
SYK has a Return On Invested Capital of 11.81%. This is amongst the best in the industry. SYK outperforms 94.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SYK is above the industry average of 8.50%.
The 3 year average ROIC (10.88%) for SYK is below the current ROIC(11.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 17.02% | ||
| ROIC | 11.81% |
ROA(3y)6.69%
ROA(5y)6.33%
ROE(3y)14.87%
ROE(5y)14.62%
ROIC(3y)10.88%
ROIC(5y)10.57%
1.3 Margins
SYK has a Profit Margin of 15.44%. This is amongst the best in the industry. SYK outperforms 93.23% of its industry peers.
In the last couple of years the Profit Margin of SYK has declined.
SYK's Operating Margin of 21.18% is amongst the best of the industry. SYK outperforms 94.27% of its industry peers.
SYK's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 63.90%, SYK is doing good in the industry, outperforming 64.06% 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 | 21.18% | ||
| PM (TTM) | 15.44% | ||
| GM | 63.9% |
OM growth 3Y1.18%
OM growth 5Y-1.3%
PM growth 3Y11.49%
PM growth 5Y-9.98%
GM growth 3Y0.05%
GM growth 5Y-0.65%
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.
Compared to 5 years ago, SYK has more shares outstanding
SYK has a better debt/assets ratio than last year.
2.2 Solvency
SYK has an Altman-Z score of 5.19. This indicates that SYK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SYK (5.19) is better than 79.69% of its industry peers.
The Debt to FCF ratio of SYK is 4.14, which is a neutral value as it means it would take SYK, 4.14 years of fcf income to pay off all of its debts.
SYK has a Debt to FCF ratio of 4.14. This is amongst the best in the industry. SYK outperforms 85.42% of its industry peers.
SYK has a Debt/Equity ratio of 0.59. This is a neutral value indicating SYK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, SYK is not doing good in the industry: 68.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 5.19 |
ROIC/WACC1.21
WACC9.79%
2.3 Liquidity
A Current Ratio of 1.58 indicates that SYK should not have too much problems paying its short term obligations.
The Current ratio of SYK (1.58) is worse than 82.29% of its industry peers.
SYK has a Quick Ratio of 1.58. 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 has a worse Quick ratio (0.97) than 84.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
SYK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.49%, which is quite good.
Measured over the past 5 years, SYK shows a small growth in Earnings Per Share. The EPS has been growing by 7.72% on average per year.
The Revenue has grown by 11.11% in the past year. This is quite good.
Measured over the past years, SYK shows a quite strong growth in Revenue. The Revenue has been growing by 8.55% on average per year.
EPS 1Y (TTM)13.49%
EPS 3Y12.57%
EPS 5Y7.72%
EPS growth Q2Q15.33%
Revenue 1Y (TTM)11.11%
Revenue growth 3Y12.62%
Revenue growth 5Y8.55%
Revenue growth Q2Q11.78%
3.2 Future
The Earnings Per Share is expected to grow by 10.84% on average over the next years. This is quite good.
Based on estimates for the next years, SYK will show a small growth in Revenue. The Revenue will grow by 7.28% on average per year.
EPS Next Y12.95%
EPS Next 2Y12.4%
EPS Next 3Y11.46%
EPS Next 5Y10.84%
Revenue Next Year9.36%
Revenue Next 2Y8.46%
Revenue Next 3Y8.16%
Revenue Next 5Y7.28%
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
SYK is valuated quite expensively with a Price/Earnings ratio of 31.97.
77.60% of the companies in the same industry are more expensive than SYK, based on the Price/Earnings ratio.
SYK's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.02.
Based on the Price/Forward Earnings ratio of 28.30, the valuation of SYK can be described as expensive.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than 77.60% of the companies in the same industry.
SYK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.97 | ||
| Fwd PE | 28.3 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than SYK, based on the Enterprise Value to EBITDA ratio.
SYK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SYK is cheaper than 80.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.11 | ||
| EV/EBITDA | 25.62 |
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)2.47
PEG (5Y)4.14
EPS Next 2Y12.4%
EPS Next 3Y11.46%
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 1.68, SYK pays a better dividend. On top of this SYK pays more dividend than 93.23% of the companies listed in the same industry.
With a Dividend Yield of 0.95, SYK pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of SYK grows each year by 9.82%, 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)9.82%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
SYK pays out 35.99% of its income as dividend. This is a sustainable payout ratio.
The dividend of SYK is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP35.99%
EPS Next 2Y12.4%
EPS Next 3Y11.46%
STRYKER CORP
NYSE:SYK (4/29/2024, 7:04:00 PM)
After market: 338.87 0 (0%)338.87
+3.26 (+0.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap128.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.97 | ||
| Fwd PE | 28.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.47
PEG (5Y)4.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 17.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.18% | ||
| PM (TTM) | 15.44% | ||
| GM | 63.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.49%
EPS 3Y12.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.11%
Revenue growth 3Y12.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y