Stryker Corp (NYSE: SYK)

Sector: Healthcare Industry: Medical Devices CIK: 0000310764
Market Cap 141.15 Bn
P/B 6.30
P/E 43.48
P/S 5.62
ROIC (Qtr) 6.35
Div Yield % 0.92
Rev 1y % (Qtr) 11.42
Total Debt (Qtr) 15.86 Bn
Debt/Equity (Qtr) 0.71
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About

Stryker Corporation, commonly known as Stryker, is a prominent player in the medical technology industry. The company, which was incorporated in Michigan in 1946, is driven by a mission to enhance healthcare. Stryker's operations are guided by its core values of integrity, accountability, people, and performance. Stryker's business activities span a broad spectrum of medical products and services. These include surgical equipment and navigation systems, endoscopic and communications systems, patient handling and emergency medical equipment, clinical...

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Investment thesis

Bull case

  • Healthy cash reserves of 4.01B provide 4.01x coverage of short-term debt 1B, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 5.04B provides strong 20.76x coverage of stock compensation 243M, indicating sustainable incentive practices.
  • Robust free cash flow of 4.28B exceeds capital expenditure of 761M by 5.63x, indicating strong organic growth funding capability.
  • Retained earnings of 20.47B provide full 1.38x coverage of long-term debt 14.86B, indicating strong internal capital position.
  • Robust tangible asset base of 22.87B provides 3.29x coverage of working capital 6.96B, indicating strong operational backing.

Bear case

  • Operating cash flow of 5.04B barely covers its investment activities of (4.87B), with a coverage ratio of -1.04, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 5.04B provides thin coverage of dividend payments of (1.28B) with a -3.93 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (4.87B) provide weak support for R&D spending of 1.62B, which is -3x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 4.01B provide limited coverage of acquisition spending of (4.79B), which is -0.84x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Retained earnings of 20.47B provide limited buffer against comprehensive income items of (687M), which is -29.80x, indicating elevated exposure to market risks.

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Medical Devices
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ABT Abbott Laboratories 173.80 Bn 32.73 5.47 12.94 Bn
2 SYK Stryker Corp 141.15 Bn 43.48 5.62 15.86 Bn
3 MDT Medtronic plc 123.47 Bn 25.92 3.55 29.10 Bn
4 BSX Boston Scientific Corp 112.80 Bn 38.92 5.62 11.44 Bn
5 EW Edwards Lifesciences Corp 45.66 Bn 33.38 7.76 0.70 Bn
6 DXCM Dexcom Inc 27.52 Bn 32.91 5.90 1.34 Bn
7 STE STERIS plc 24.13 Bn 34.08 4.14 2.05 Bn
8 PODD Insulet Corp 17.33 Bn 70.38 6.87 1.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.23 2.13
EV to Cash from Ops. EV/CFO 30.63 2.75
EV to Debt EV to Debt 9.74 17.25
EV to EBIT EV/EBIT 30.17 2.89
EV to EBITDA EV/EBITDA 28.88 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF 36.07 29.36
EV to Market Cap EV to Market Cap 1.09 25.09
EV to Revenue EV/Rev 6.15 32.80
Price to Book Value [P/B] P/B 6.30 4.73
Price to Earnings [P/E] P/E 43.48 -2.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.53 40.22
Dividend Payout Ratio % Div Payout % (Qtr) 40.00 1.59
Dividend per Basic Share Div per Share (Qtr) 3.40 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 30.34 -0.37
Interest Coverage Int. cover (Qtr) 8.44 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.79 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 9.83 8,476.58
Dividend Growth (1y) % Div 1y % (Qtr) 4.94 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 10.14 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 29.98 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) 31.27 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) 29.27 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) 8.02 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) 22.83 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.25 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.22 0.02
Cash Ratio Cash Ratio (Qtr) 0.51 1.80
Current Ratio Curr Ratio (Qtr) 1.89 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.71 1.20
Interest Cover Ratio Int Coverage (Qtr) 8.44 196.93
Times Interest Earned Times Interest Earned (Qtr) 8.44 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 22.20 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) 20.39 -2,478.60
EBT Margin % EBT Margin % (Qtr) 17.97 -2,690.42
Gross Margin % Gross Margin % (Qtr) 64.00 30.80
Net Profit Margin % Net Margin % (Qtr) 12.90 -2,821.53