Stryker Corporation Fundamental Analysis (NYSE: SYK)
Stryker Corporation (NYSE: SYK) shows moderate financial fundamentals with a PE ratio of 35.02, profit margin of 14.43%, and ROE of 16.36%. The company generates $25.8B in annual revenue with strong year-over-year growth of 11.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SYK's fundamental strength across five key dimensions:
Efficiency Score
WeakSYK struggles to generate sufficient returns from assets.
Valuation Score
ModerateSYK shows balanced valuation metrics.
Growth Score
ModerateSYK shows steady but slowing expansion.
Financial Health Score
ExcellentSYK maintains a strong and stable balance sheet.
Profitability Score
ModerateSYK maintains healthy but balanced margins.
Key Financial Metrics
Is SYK Expensive or Cheap?
P/E Ratio
SYK trades at 35.02 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SYK's PEG of 1.29 indicates fair valuation.
Price to Book
The market values Stryker Corporation at 5.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.04 times EBITDA. This signals the market has high growth expectations.
How Well Does SYK Make Money?
Net Profit Margin
For every $100 in sales, Stryker Corporation keeps $14.43 as profit after all expenses.
Operating Margin
Core operations generate 22.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.36 in profit for every $100 of shareholder equity.
ROA
Stryker Corporation generates $7.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Stryker Corporation produces operating cash flow of $5.52B, showing steady but balanced cash generation.
Free Cash Flow
Stryker Corporation generates strong free cash flow of $4.70B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.26 in free cash annually.
FCF Yield
SYK converts 3.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How SYK Stacks Against Its Sector Peers
| Metric | SYK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.02 | 31.50 | Worse (Expensive) |
| ROE | 16.36% | 422.00% | Weak |
| Net Margin | 14.43% | 19867.00% | Weak |
| Debt/Equity | 0.62 | 0.53 | Neutral |
| Current Ratio | 2.16 | 5.56 | Strong Liquidity |
| ROA | 7.78% | 1571.00% | Weak |
SYK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Stryker Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.94%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
99.44%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
51.22%
Industry Style: Defensive, Growth, Innovation
High Growth