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

1.4%

NYSE:SYK

1.9%

US Medical Equipment

2.1%

US Market


1 Year Return

28.8%

NYSE:SYK

13.6%

US Medical Equipment

-0.04%

US Market

SYK outperformed the Medical Equipment industry which returned 14% over the past year.

SYK outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

SYKIndustryMarket
7 Day1.4%1.9%2.1%
30 Day4.3%-0.2%-3.2%
90 Day18.1%10.2%2.8%
1 Year30.3%28.8%14.5%13.6%2.2%-0.04%
3 Year99.7%92.6%70.2%65.0%41.5%32.3%
5 Year181.9%164.0%133.6%106.8%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

22.99x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Stryker's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Stryker's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Stryker is good value based on earnings compared to the US Medical Equipment industry average.

Stryker is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Stryker is poor value based on expected growth next year.


Price Based on Value of Assets

Stryker is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

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

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Stryker's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Stryker's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).

Stryker's revenue growth is positive but not above the United States of America market average.

Stryker's earnings growth is positive but not above the United States of America market average.

Stryker's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Stryker is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Stryker has delivered over 20% year on year earnings growth in the past 5 years.

Stryker's 1-year earnings growth exceeds its 5-year average (228.7% vs 27.3%)

Stryker's earnings growth has exceeded the US Medical Equipment industry average in the past year (228.7% vs 28.9%).


Return on Equity

Stryker has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Stryker used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Stryker has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Stryker's financial position?


Financial Position Analysis

Stryker is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Stryker's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Stryker's level of debt (71.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (43% vs 71.3% today).

Debt is well covered by operating cash flow (29.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 26.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

1.04%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Stryker before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Stryker's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Stryker's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Kevin Lobo (54yo)

6.8yrs

Tenure

US$13,911,065

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

Kevin's remuneration is about average for companies of similar size in United States of America.

Kevin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.9yrs

Average Tenure

52yo

Average Age

The average tenure for the Stryker management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.8yrs

Average Tenure

63.5yo

Average Age

The tenure for the Stryker board of directors is about average.


Insider Trading

Stryker individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

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: 1.0yrs
    • Compensation: US$6.63m
  • Bronwen Taylor

    Vice President of Compliance & Risk Management

    • Tenure: 6.0yrs
  • Katherine Owen (48yo)

    Vice President of Strategy & Investor Relations

    • Tenure: 2.5yrs
  • Kevin Lobo (54yo)

    Chairman & CEO

    • Tenure: 6.8yrs
    • Compensation: US$13.91m
  • William Berry (53yo)

    Principal Accounting Officer

    • Tenure: 5.5yrs
  • Mike Hutchinson (48yo)

    Advisor to Chief Executive Officer

    • Tenure: 0.3yrs
    • Compensation: US$2.34m
  • Bijoy S. Sagar (50yo)

    VP & Chief Digital Technology Officer

    • Tenure: 0.9yrs
  • Glenn Boehnlein (57yo)

    VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$3.79m
  • Viju Menon (51yo)

    Group President of Global Quality & Operations

    • Tenure: 1.3yrs
    • Compensation: US$4.39m
  • Robert Fletcher

    VP & Chief Legal Officer

    • Tenure: 0.3yrs

Board Members

  • John Brown (84yo)

    Chairman Emeritus

    • Tenure: 0.0yrs
    • Compensation: US$286.99k
  • Ronda Stryker (64yo)

    Independent Director

    • Tenure: 35.6yrs
    • Compensation: US$290.12k
  • Mary Brainerd (65yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: US$290.12k
  • Frederic Doliveux (63yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$305.12k
  • Louise Francesconi (66yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$305.12k
  • Srikant T. Datar (66yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$290.12k
  • Allan Golston (52yo)

    Lead Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$325.12k
  • Rajeev Suri (52yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$251.58k
  • Andy Silvernail (48yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$310.12k
  • Kevin Lobo (54yo)

    Chairman & CEO

    • Tenure: 6.8yrs
    • 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$81.438b
  • 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 Analysis2019/08/22 23:44
End of Day Share Price2019/08/22 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.