NYSE:SYK

Stock Analysis Report

Executive Summary

Stryker Corporation operates as a medical technology company.

Snowflake

Fundamentals

Outstanding track record 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


Market Performance


7 Day Return

-0.1%

SYK

-0.003%

US Medical Equipment

1.3%

US Market


1 Year Return

25.5%

SYK

11.9%

US Medical Equipment

5.9%

US Market

Return vs Industry: SYK exceeded the US Medical Equipment industry which returned 11.9% over the past year.

Return vs Market: SYK exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

SYKIndustryMarket
7 Day-0.1%-0.003%1.3%
30 Day-2.5%-3.0%-1.9%
90 Day3.5%-0.6%-1.8%
1 Year26.9%25.5%12.8%11.9%8.3%5.9%
3 Year94.0%87.3%69.6%64.5%45.6%36.2%
5 Year179.9%162.5%129.6%104.0%66.1%47.9%

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?

22.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SYK ($212.66) is trading above our estimate of fair value ($164.55)

Significantly Undervalued: SYK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SYK is good value based on its PE Ratio (22.4x) compared to the Medical Equipment industry average (40.1x).

PE vs Market: SYK is poor value based on its PE Ratio (22.4x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: SYK is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: SYK is overvalued based on its PB Ratio (6.7x) compared to the US Medical Equipment industry average (3.6x).


Next Steps

Future Growth

How is Stryker forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYK's forecast earnings growth (11.7% per year) is above the savings rate (2.7%).

Earnings vs Market: SYK's earnings (11.7% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: SYK's earnings are forecast to grow, but not significantly.

Revenue vs Market: SYK's revenue (6.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SYK's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SYK's Return on Equity is forecast to be high in 3 years time (22.9%)


Next Steps

Past Performance

How has Stryker performed over the past 5 years?

27.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SYK's earnings have grown significantly by 27.3% per year over the past 5 years.

Accelerating Growth: SYK's earnings growth over the past year (228.7%) exceeds its 5-year average (27.3% per year).

Earnings vs Industry: SYK earnings growth over the past year (228.7%) exceeded the Medical Equipment industry 28.2%.


Return on Equity

High ROE: SYK's Return on Equity (29.7%) is considered high.


Return on Assets

ROA vs Industry: SYK has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: SYK has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Stryker's financial position?


Financial Position Analysis

Short Term Liabilities: SYK's short term assets ($8.2B) exceeds its short term liabilities ($3.9B)

Long Term Liabilities: SYK's short term assets (8.2B) do not cover its long term liabilities (10.5B)


Debt to Equity History and Analysis

Debt Level: SYK's debt to equity ratio (71.3%) is considered high

Reducing Debt: SYK's debt to equity ratio has increased from 43% to 71.3% over the past 5 years.

Debt Coverage: SYK's debt is well covered by operating cash flow (29.3%).

Interest Coverage: SYK's interest payments on its debt are well covered by EBIT (26.7x coverage).


Balance Sheet

Inventory Level: SYK has a high level of physical assets or inventory.

Debt Coverage by Assets: SYK's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

0.98%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SYK's dividend (0.98%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: SYK's dividend (0.98%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 low payout ratio (21.4%), 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 (23.4% payout ratio).


Next Steps

Management

What is the CEO of Stryker's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Kevin Lobo (54yo)

7yrs

Tenure

US$13,911,065

Compensation

Mr. Kevin A. Lobo, ACFE 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 t ...


CEO Compensation Analysis

Compensation vs. Market: Kevin's total compensation ($USD13.91M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

2.1yrs

Average Tenure

52yo

Average Age

Experienced Management: SYK's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SYK's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: SYK insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$111,60003 Sep 19
William Berry
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares500
Max PriceUS$223.20
SellUS$75,25016 Aug 19
Srikant T. Datar
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares350
Max PriceUS$215.00
SellUS$8,424,48902 Aug 19
Ronda Stryker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares39,818
Max PriceUS$211.57
BuyUS$8,72601 Aug 19
Frederic Doliveux
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares41
Max PriceUS$212.84
SellUS$19,304,71101 Aug 19
Ronda Stryker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares90,182
Max PriceUS$214.06
SellUS$380,85507 May 19
Bijoy S. Sagar
EntityIndividual
Role
Chief Technology Officer
VP & Chief Digital Technology Officer
Shares2,000
Max PriceUS$190.43
BuyUS$8,11703 May 19
Frederic Doliveux
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares43
Max PriceUS$188.77
SellUS$501,64829 Apr 19
Louise Francesconi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,679
Max PriceUS$187.25
SellUS$31,81904 Feb 19
M. Fink
EntityIndividual
Shares180
Max PriceUS$176.77
BuyUS$8,15404 Feb 19
Frederic Doliveux
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares46
Max PriceUS$177.26
SellUS$404,28911 Dec 18
Bijoy S. Sagar
EntityIndividual
Role
Chief Technology Officer
VP & Chief Digital Technology Officer
Shares2,361
Max PriceUS$171.24
SellUS$14,08207 Nov 18
M. Fink
EntityIndividual
Shares85
Max PriceUS$165.67
SellUS$212,24906 Nov 18
William Berry
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares1,281
Max PriceUS$165.69
SellUS$69,12406 Nov 18
M. Fink
EntityIndividual
Shares415
Max PriceUS$166.56
BuyUS$7,35202 Nov 18
Frederic Doliveux
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares45
Max PriceUS$163.39

Ownership Breakdown


Management Team

  • Tim Scannell (54yo)

    President & COO

    • Tenure: 1.2yrs
    • Compensation: US$6.63m
  • Bronwen Taylor

    Vice President of Compliance & Risk Management

    • Tenure: 6.2yrs
  • Katherine Owen (48yo)

    Vice President of Strategy & Investor Relations

    • Tenure: 2.7yrs
  • Kevin Lobo (54yo)

    Chairman & CEO

    • Tenure: 7yrs
    • Compensation: US$13.91m
  • William Berry (53yo)

    Principal Accounting Officer

    • Tenure: 5.7yrs
  • Mike Hutchinson (48yo)

    Advisor to Chief Executive Officer

    • Tenure: 0.5yrs
    • Compensation: US$2.34m
  • Bijoy S. Sagar (50yo)

    VP & Chief Digital Technology Officer

    • Tenure: 1.1yrs
  • Glenn Boehnlein (57yo)

    VP & CFO

    • Tenure: 3.5yrs
    • Compensation: US$3.79m
  • Viju Menon (51yo)

    Group President of Global Quality & Operations

    • Tenure: 1.5yrs
    • Compensation: US$4.39m
  • Robert Fletcher

    VP & Chief Legal Officer

    • Tenure: 0.5yrs

Board Members

  • John Brown (84yo)

    Chairman Emeritus

    • Tenure: 0yrs
    • Compensation: US$286.99k
  • Ronda Stryker (64yo)

    Independent Director

    • Tenure: 35.8yrs
    • Compensation: US$290.12k
  • Mary Brainerd (65yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$290.12k
  • Frederic Doliveux (63yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$305.12k
  • Louise Francesconi (66yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$305.12k
  • Srikant T. Datar (66yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$290.12k
  • Allan Golston (52yo)

    Lead Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$325.12k
  • Rajeev Suri (52yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$251.58k
  • Andy Silvernail (48yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$310.12k
  • Kevin Lobo (54yo)

    Chairman & CEO

    • Tenure: 7yrs
    • Compensation: US$13.91m

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$79.345b
  • Shares outstanding: 373.11m
  • 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
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

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 Analysis2019/10/14 23:40
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.