NYSE:SYK

Stock Analysis Report

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Executive Summary

Stryker Corporation operates as a medical technology company. More Details


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Stryker's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SYK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SYK's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.9%

SYK

2.2%

US Medical Equipment

1.5%

US Market


1 Year Return

17.5%

SYK

20.0%

US Medical Equipment

22.3%

US Market

Return vs Industry: SYK underperformed the US Medical Equipment industry which returned 19% over the past year.

Return vs Market: SYK underperformed the US Market which returned 22.1% over the past year.


Shareholder returns

SYKIndustryMarket
7 Day2.9%2.2%1.5%
30 Day15.3%3.4%8.8%
90 Day21.2%8.8%10.8%
1 Year18.9%17.5%21.0%20.0%25.1%22.3%
3 Year63.3%57.7%76.0%71.5%49.5%39.6%
5 Year176.5%159.9%147.7%128.7%105.8%83.3%

Long-Term Price Volatility Vs. Market

How volatile is Stryker's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Stryker undervalued compared to its fair value and its price relative to the market?

51.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SYK ($239.59) is trading above our estimate of fair value ($205.93)

Significantly Below Fair Value: SYK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SYK is poor value based on its PE Ratio (51.2x) compared to the US Medical Equipment industry average (49.9x).

PE vs Market: SYK is poor value based on its PE Ratio (51.2x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: SYK is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SYK is overvalued based on its PB Ratio (6.9x) compared to the US Medical Equipment industry average (4.4x).


Next Steps

Future Growth

How is Stryker forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

31.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYK's forecast earnings growth (31.7% per year) is above the savings rate (2.2%).

Earnings vs Market: SYK's earnings (31.7% per year) are forecast to grow faster than the US market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SYK's revenue (8.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: SYK's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SYK's Return on Equity is forecast to be high in 3 years time (21.9%)


Next Steps

Past Performance

How has Stryker performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYK has a large one-off loss of $668.0M impacting its September 30 2020 financial results.

Growing Profit Margin: SYK's current net profit margins (12.3%) are lower than last year (23.4%).


Past Earnings Growth Analysis

Earnings Trend: SYK's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: SYK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SYK had negative earnings growth (-48.5%) over the past year, making it difficult to compare to the Medical Equipment industry average (0.2%).


Return on Equity

High ROE: SYK's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is Stryker's financial position?


Financial Position Analysis

Short Term Liabilities: SYK's short term assets ($13.5B) exceed its short term liabilities ($4.7B).

Long Term Liabilities: SYK's short term assets ($13.5B) do not cover its long term liabilities ($14.6B).


Debt to Equity History and Analysis

Debt Level: SYK's debt to equity ratio (101.1%) is considered high.

Reducing Debt: SYK's debt to equity ratio has increased from 41.3% to 101.1% over the past 5 years.

Debt Coverage: SYK's debt is well covered by operating cash flow (21.1%).

Interest Coverage: SYK's interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Stryker current dividend yield, its reliability and sustainability?

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYK's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: SYK's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (4.1%).


Stability and Growth of Payments

Stable Dividend: SYK's dividends per share have been stable in the past 10 years.

Growing Dividend: SYK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.1%), SYK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SYK's dividends in 3 years are forecast to be well covered by earnings (27.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Kevin Lobo (55 yo)

8.17yrs

Tenure

US$14,974,829

Compensation

Mr. Kevin A. Lobo has been the Chief Executive Officer of Stryker Corporation since October 1, 2012. Mr. Lobo served as the President of Stryker from October 1, 2012 to August 1, 2018. He served as the Pre...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD14.97M) is above average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Lobo
Chairman & CEO8.17yrsUS$14.97m0.019%
$ 16.6m
Timothy Scannell
President & COO2.33yrsUS$7.11m0.058%
$ 51.4m
Glenn Boehnlein
VP & CFO4.67yrsUS$4.38m0.0047%
$ 4.2m
Robert Fletcher
VP & Chief Legal Officer1.67yrsUS$3.15m0.00078%
$ 688.2k
Viju Menon
Group President of Global Quality & Operations2.67yrsUS$3.03m0.0012%
$ 1.0m
Robert Cohen
CTO and VP of Global R&D - Joint Replacementno datano datano data
Alan Douville
VP, Chief Information Officer & Chief Information Security Officer2.25yrsno datano data
Preston Wells
Vice President of Investor Relations0.50yrno datano data
Bronwen Taylor
Vice President of Compliance & Risk Management7.33yrsno datano data
Yin Becker
Vice President of Communications2yrsno data0.0035%
$ 3.1m
M. Fink
VP & Chief Human Resources Officer4.92yrsno data0.0034%
$ 3.0m
Katherine Owen
0.50yrno data0.00055%
$ 485.3k

2.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: SYK's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Lobo
Chairman & CEO8.17yrsUS$14.97m0.019%
$ 16.6m
Lisa Skeete Tatum
Independent Director0.58yrno datano data
John Brown
Chairman Emeritusno dataUS$286.99k5.34%
$ 4.7b
Ronda Stryker
Independent Director36.92yrsUS$290.11k6.05%
$ 5.3b
Mary Brainerd
Independent Director3.33yrsUS$290.11k0.00069%
$ 608.8k
Frederic Doliveux
Independent Director10.5yrsUS$305.11k0.0059%
$ 5.2m
Srikant T. Datar
Independent Director11.42yrsUS$290.11k0.0073%
$ 6.4m
Allan Golston
Lead Independent Director4.25yrsUS$325.11k0.0024%
$ 2.1m
Sherilyn S. McCoy
Independent Director2.58yrsUS$300.08kno data
Rajeev Suri
Independent Director2.58yrsUS$290.11k0.00053%
$ 467.6k
Giovanni Caforio
Directorno datano datano data
Andrew Silvernail
Independent Director7.08yrsUS$310.11k0.00051%
$ 450.0k

5.3yrs

Average Tenure

58yo

Average Age

Experienced Board: SYK's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SYK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Stryker Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stryker Corporation
  • Ticker: SYK
  • Exchange: NYSE
  • Founded: 1941
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$88.228b
  • Shares outstanding: 375.79m
  • Website: https://www.stryker.com

Number of Employees


Location

  • Stryker Corporation
  • 2825 Airview Boulevard
  • Kalamazoo
  • Michigan
  • 49002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYKNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
SYKDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
SYKXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1980
SYKSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1980
0R2SLSE (London Stock Exchange)YesCommon StockGBUSDJan 1980
SYK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1980
SYKWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1980
SYKETLX (Eurotlx)YesCommon StockITEURJan 1980
S1YK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Stryker Corporation operates as a medical technology company. The company operates through three segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The Orthopaedics segment provides implants f...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 23:07
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.