STRYKER CORP (SYK) Stock Fundamental Analysis
NYSE:SYK - New York Stock Exchange, Inc. - US8636671013 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SYK. SYK was compared to 188 industry peers in the Health Care Equipment & Supplies industry. SYK scores excellent on profitability, 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.
Each year in the past 5 years SYK had a positive operating cash flow.
1.2 Ratios
SYK has a better Return On Assets (6.21%) than 87.77% of its industry peers.
With an excellent Return On Equity value of 13.66%, SYK belongs to the best of the industry, outperforming 90.96% of the companies in the same industry.
SYK has a better Return On Invested Capital (11.71%) than 94.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYK is above the industry average of 7.71%.
The 3 year average ROIC (11.52%) for SYK is below the current ROIC(11.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 13.66% | ||
| ROIC | 11.71% |
ROA(3y)7.1%
ROA(5y)6.34%
ROE(3y)15.24%
ROE(5y)14.27%
ROIC(3y)11.52%
ROIC(5y)10.64%
1.3 Margins
SYK's Profit Margin of 12.31% is amongst the best of the industry. SYK outperforms 90.43% of its industry peers.
In the last couple of years the Profit Margin of SYK has remained more or less at the same level.
SYK's Operating Margin of 22.35% is amongst the best of 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.
With a decent Gross Margin value of 64.57%, SYK is doing good in the industry, outperforming 67.02% of the companies in the same industry.
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 | 22.35% | ||
| PM (TTM) | 12.31% | ||
| GM | 64.57% |
OM growth 3Y2.95%
OM growth 5Y-0.35%
PM growth 3Y4.36%
PM growth 5Y-1.09%
GM growth 3Y-0.02%
GM growth 5Y-0.49%
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.
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
The debt/assets ratio for SYK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.08 indicates that SYK is not in any danger for bankruptcy at the moment.
SYK has a Altman-Z score of 5.08. This is in the better half of the industry: SYK outperforms 77.66% of its industry peers.
SYK has a debt to FCF ratio of 4.69. This is a neutral value as SYK would need 4.69 years to pay back of all of its debts.
SYK's Debt to FCF ratio of 4.69 is amongst the best of the industry. SYK outperforms 81.91% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that SYK is somewhat dependend on debt financing.
SYK's Debt to Equity ratio of 0.69 is on the low side compared to the rest of the industry. SYK is outperformed by 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 5.08 |
ROIC/WACC1.37
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.64 indicates that SYK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.64, SYK is not doing good in the industry: 73.40% of the companies in the same industry are doing better.
SYK has a Quick Ratio of 1.64. 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 (1.00) than 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
SYK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.32%, which is quite good.
The Earnings Per Share has been growing by 8.09% on average over the past years. This is quite good.
SYK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.76%.
The Revenue has been growing by 8.71% on average over the past years. This is quite good.
EPS 1Y (TTM)14.32%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%13.6%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.88%
3.2 Future
The Earnings Per Share is expected to grow by 9.92% 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 7.76% on average per year.
EPS Next Y10.54%
EPS Next 2Y10.75%
EPS Next 3Y11.07%
EPS Next 5Y9.92%
Revenue Next Year9.63%
Revenue Next 2Y8.98%
Revenue Next 3Y8.77%
Revenue Next 5Y7.76%
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
A Price/Earnings ratio of 30.51 indicates a quite expensive valuation of SYK.
Based on the Price/Earnings ratio, SYK is valued a bit cheaper than 73.40% of the companies in the same industry.
SYK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.57 indicates a quite expensive valuation of SYK.
Based on the Price/Forward Earnings ratio, SYK is valued a bit cheaper than the industry average as 71.81% of the companies are valued more expensively.
SYK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.51 | ||
| Fwd PE | 25.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYK indicates a somewhat cheap valuation: SYK is cheaper than 71.81% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SYK is valued a bit cheaper than the industry average as 77.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.85 | ||
| EV/EBITDA | 25.66 |
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)2.89
PEG (5Y)3.77
EPS Next 2Y10.75%
EPS Next 3Y11.07%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, SYK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.86, SYK pays a better dividend. On top of this SYK pays more dividend than 92.02% of the companies listed in the same industry.
With a Dividend Yield of 0.88, SYK pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
On average, the dividend of SYK grows each year by 9.04%, which is quite nice.
SYK has paid a dividend for at least 10 years, which is a reliable track record.
SYK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.04%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
SYK pays out 43.20% 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.
DP43.2%
EPS Next 2Y10.75%
EPS Next 3Y11.07%
382.35
+1.96 (+0.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners79.74%
Inst Owner Change2.01%
Ins Owners0.1%
Ins Owner Change4.36%
Market Cap146.12B
Analysts80
Price Target437.4 (14.4%)
Short Float %1.59%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend3.2
Dividend Growth(5Y)9.04%
DP43.2%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.36%
Min EPS beat(2)2.54%
Max EPS beat(2)4.19%
EPS beat(4)3
Avg EPS beat(4)2.25%
Min EPS beat(4)-0.26%
Max EPS beat(4)4.19%
EPS beat(8)7
Avg EPS beat(8)3.09%
EPS beat(12)9
Avg EPS beat(12)2.27%
EPS beat(16)11
Avg EPS beat(16)1.63%
Revenue beat(2)2
Avg Revenue beat(2)1%
Min Revenue beat(2)0.17%
Max Revenue beat(2)1.82%
Revenue beat(4)3
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)1.82%
Revenue beat(8)6
Avg Revenue beat(8)1.19%
Revenue beat(12)8
Avg Revenue beat(12)1.23%
Revenue beat(16)11
Avg Revenue beat(16)1%
PT rev (1m)-0.01%
PT rev (3m)0.01%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.51 | ||
| Fwd PE | 25.57 | ||
| P/S | 6.29 | ||
| P/FCF | 40.85 | ||
| P/OCF | 34.08 | ||
| P/B | 6.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.66 |
EPS(TTM)12.53
EY3.28%
EPS(NY)14.95
Fwd EY3.91%
FCF(TTM)9.36
FCFY2.45%
OCF(TTM)11.22
OCFY2.93%
SpS60.75
BVpS54.77
TBVpS-11.23
PEG (NY)2.89
PEG (5Y)3.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 13.66% | ||
| ROCE | 13.63% | ||
| ROIC | 11.71% | ||
| ROICexc | 12.51% | ||
| ROICexgc | 42.69% | ||
| OM | 22.35% | ||
| PM (TTM) | 12.31% | ||
| GM | 64.57% | ||
| FCFM | 15.41% |
ROA(3y)7.1%
ROA(5y)6.34%
ROE(3y)15.24%
ROE(5y)14.27%
ROIC(3y)11.52%
ROIC(5y)10.64%
ROICexc(3y)12.76%
ROICexc(5y)11.81%
ROICexgc(3y)39.42%
ROICexgc(5y)36.5%
ROCE(3y)13.4%
ROCE(5y)12.38%
ROICexcg growth 3Y8.12%
ROICexcg growth 5Y2.5%
ROICexc growth 3Y8.12%
ROICexc growth 5Y0.63%
OM growth 3Y2.95%
OM growth 5Y-0.35%
PM growth 3Y4.36%
PM growth 5Y-1.09%
GM growth 3Y-0.02%
GM growth 5Y-0.49%
F-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 66.95% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.59% | ||
| Profit Quality | 125.11% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 5.08 |
F-Score4
WACC8.56%
ROIC/WACC1.37
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)14.32%
EPS 3Y10.28%
EPS 5Y8.09%
EPS Q2Q%13.6%
EPS Next Y10.54%
EPS Next 2Y10.75%
EPS Next 3Y11.07%
EPS Next 5Y9.92%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y9.72%
Revenue growth 5Y8.71%
Sales Q2Q%11.88%
Revenue Next Year9.63%
Revenue Next 2Y8.98%
Revenue Next 3Y8.77%
Revenue Next 5Y7.76%
EBIT growth 1Y14.65%
EBIT growth 3Y12.96%
EBIT growth 5Y8.33%
EBIT Next Year25.23%
EBIT Next 3Y14.78%
EBIT Next 5Y11.56%
FCF growth 1Y57.79%
FCF growth 3Y8.39%
FCF growth 5Y17.73%
OCF growth 1Y49.62%
OCF growth 3Y9.14%
OCF growth 5Y14.13%