SYK Stryker Corporation - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
SYK trades at a premium to the sector’s average P/E of 43.86x and higher than DHR (45.42x) and TMO (33.45x), despite slower earnings growth, indicating potential overvaluation unless growth rebounds.
- Forward P/E of 26.77x is more reasonable than current P/E of 47.60x, suggesting market pricing in recovery
- Price/Sales of 5.86x is in line with high-margin medtech peers
- Current P/E of 47.60x is unsustainably high without accelerating earnings growth
- Lack of EV/EBITDA and PEG data limits full valuation context, increasing uncertainty
While revenue momentum remains healthy and price trends show stabilization after a weak 6-month period (-7.7%), the disconnect between top-line growth and bottom-line delivery creates uncertainty about future inflection, especially as peers like TMO show stronger earnings consistency and price momentum (+40.7% 6M return).
- 10.2% revenue growth signals continued demand for orthopedic and surgical robotics platforms
- Analyst target of $428.96 reflects confidence in long-term innovation pipeline and market share gains
- Earnings growth of 2.8% YoY and weak Q/Q EPS trend (+1.9%) suggest profit growth is not keeping pace with sales
- Recent negative earnings surprises (-7.34% avg last 4 quarters) undermine forward guidance credibility
Stryker has delivered strong historical profitability and long-term shareholder returns, but recent earnings volatility and underperformance over the past year highlight growing execution challenges amid a competitive medtech landscape.
- Consistent profitability with gross margin above 65% and operating margin near 22% over multiple cycles
- Long-term price appreciation of +61.8% over 5 years demonstrates compounding power and investor confidence
- Earnings surprise trend has deteriorated, with two misses in the last four quarters including a significant -25.8% miss
- 1-year return of -4.6% underperforms both sector and key peers like AMGN (+17.6%) and TMO (+8.9%)
SYK’s leverage is conservative relative to peers like AMGN (Debt/Equity 5.67) and the sector average (1.15), supporting resilience, though the sub-1 quick ratio warrants monitoring, especially in a rising rate environment.
- Debt/Equity of 0.79 is manageable and below sector average of 1.15, providing financial flexibility
- Current ratio of 1.85 indicates solid short-term liquidity despite missing total cash and debt figures
- Quick ratio of 0.94 is below 1.0, suggesting potential strain in meeting short-term obligations without inventory liquidation
- Missing total cash, debt, and free cash flow data limits full assessment of liquidity runway and capital allocation capacity
Stryker’s dividend policy appears disciplined with a healthy payout ratio, but the modest yield offers limited downside protection in a high-valuation environment, especially when compared to income-oriented healthcare peers.
- Dividend payout ratio of 44.15% is sustainable and leaves room for future increases
- Yield of 0.93% may attract long-term investors despite being below sector average
- Dividend yield is relatively low compared to peers like PFE (over 5% historically), limiting income appeal
- No 5-year yield average or growth history provided, obscuring dividend policy consistency
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for SYK and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
SYK
Stryker Corporation
Primary
|
+61.8% | +68.1% | -4.6% | -7.7% | -2.0% | +1.7% |
|
PFE
Pfizer Inc.
Peer
|
-9.7% | -38.6% | +3.3% | +13.6% | +4.6% | +2.6% |
|
BSX
Boston Scientific Corporation
Peer
|
+170.0% | +142.1% | +17.2% | -3.2% | +5.1% | +2.7% |
|
DHR
Danaher Corporation
Peer
|
+11.0% | -6.3% | -7.0% | +13.2% | +7.3% | +5.4% |
|
HCA
HCA Healthcare, Inc.
Peer
|
+225.1% | +111.6% | +37.9% | +22.4% | +12.5% | -0.8% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Healthcare Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
SYK
Stryker Corporation
|
NEUTRAL | $142.8B | 47.6 | 14.0% | 12.1% | $362.22 | |
|
PFE
Pfizer Inc.
|
NEUTRAL | $146.63B | 14.57 | 10.6% | 15.7% | $25.06 | |
|
BSX
Boston Scientific Corporation
|
BULLISH | $155.63B | 54.91 | 12.5% | 14.4% | $102.69 | |
|
DHR
Danaher Corporation
|
NEUTRAL | $156.25B | 45.42 | 6.8% | 14.4% | $221.21 | |
|
HCA
HCA Healthcare, Inc.
|
BULLISH | $108.0B | 18.28 | -% | 8.5% | $472.65 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-06 | STRYKER RONDA E | Director | Sale | 520,000 | $184,606,141 |
| 2025-08-25 | MENON VIJU S | Officer | Sale | 500 | $195,305 |
| 2025-08-20 | FLETCHER ROBERT S | Officer | Sale | 1,785 | $701,630 |
| 2025-08-06 | STRYKER RONDA E | Director | Sale | 200,000 | $75,289,655 |
| 2025-08-05 | FINK MARY KATHRYN | Officer | Stock Award | 917 | - |
| 2025-08-05 | KING DEBRA | Chief Technology Officer | Stock Award | 6,553 | - |
Wall Street Analysts
Professional analyst ratings and price targets