STRYKER CORP (SYK) Stock Fundamental Analysis
USA - NYSE:SYK - US8636671013 - Common Stock
364.23 USD
+4.71 (+1.31%)
363.9 USD
-0.33 (-0.09%)
SYK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 188 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 growing strongly while it is still valued neutral. This is a good combination!
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's Return On Assets of 6.25% is amongst the best of the industry. SYK outperforms 84.04% of its industry peers.
Looking at the Return On Equity, with a value of 13.51%, SYK belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
The Return On Invested Capital of SYK (11.70%) is better than 92.02% 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 8.98%.
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
The Profit Margin of SYK (12.07%) is better than 87.23% of its industry peers.
SYK's Profit Margin has been stable in the last couple of years.
SYK has a Operating Margin of 22.14%. This is amongst the best in the industry. SYK outperforms 93.62% of its industry peers.
In the last couple of years the Operating Margin of SYK has remained more or less at the same level.
The Gross Margin of SYK (64.59%) is better than 67.55% 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
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.
The number of shares outstanding for SYK has been increased compared to 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 3.64, which is a good value as it means it would take SYK, 3.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SYK (3.64) is better than 81.91% of its industry peers.
SYK has a Debt/Equity ratio of 0.68. This is a neutral value indicating SYK is somewhat dependend on debt financing.
The Debt to Equity ratio of SYK (0.68) is worse than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC8.22%
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 worse Current ratio (1.85) than 67.02% of its industry peers.
A Quick Ratio of 1.13 indicates that SYK should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, SYK is not doing good in the industry: 73.94% of the companies in the same industry are doing better.
| 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%.
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)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
The Earnings Per Share is expected to grow by 10.06% 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 8.42% 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 27.66.
Based on the Price/Earnings ratio, SYK is valued a bit cheaper than the industry average as 74.47% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.47, SYK is valued at the same level.
SYK is valuated rather expensively with a Price/Forward Earnings ratio of 24.29.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than 73.40% of the companies in the same industry.
SYK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.66 | ||
| Fwd PE | 24.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYK is valued a bit cheaper than 73.94% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SYK is valued a bit cheaper than 77.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.19 | ||
| EV/EBITDA | 23.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SYK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.48
PEG (5Y)3.42
EPS Next 2Y10.9%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, 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 1.69. SYK pays more dividend than 93.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SYK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
On average, the dividend of SYK grows each year by 9.03%, which is quite nice.
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
43.09% of the earnings are spent on dividend by SYK. 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.
DP43.09%
EPS Next 2Y10.9%
EPS Next 3Y11.02%
364.23
+4.71 (+1.31%)
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-0.9%
Ins Owners0.11%
Ins Owner Change0.99%
Market Cap139.25B
Revenue(TTM)24.38B
Net Income(TTM)2.94B
Analysts80
Price Target439.53 (20.67%)
Short Float %1.17%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)0.13%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.66 | ||
| Fwd PE | 24.29 | ||
| P/S | 5.71 | ||
| P/FCF | 34.19 | ||
| P/OCF | 28.82 | ||
| P/B | 6.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.04 |
EPS(TTM)13.17
EY3.62%
EPS(NY)14.99
Fwd EY4.12%
FCF(TTM)10.65
FCFY2.92%
OCF(TTM)12.64
OCFY3.47%
SpS63.77
BVpS56.98
TBVpS-8.67
PEG (NY)2.48
PEG (5Y)3.42
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
WACC8.22%
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)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%.