Stryker (SYK) AI Stock Analysis

• Market Cap: $138.54B
• Dividend Yield: 0.97%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 46.8
• Beta (1Y): 0.65
• Revenue Growth: 10.23%
• EPS Growth: -5.74%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Devices
• EPS (TTM): 7.76
• Shares Outstanding: 381,688,840
• 10 Day Avg. Volume: 2,249,247
• 30 Day Avg. Volume: 1,801,018
• PEG Ratio: 1.10
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.27
• Price to Cash Flow (P/CF): 18.30
• P/FCF Ratio: 15.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $437.16
• Price Target Upside: 25.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

Stryker's stock is bolstered by strong financial performance and positive future guidance, with strategic acquisitions enhancing its market position. However, the high P/E ratio suggests potential overvaluation, and technical indicators reflect a neutral momentum.

Positive Factors

Business Momentum

SYK entered 2025 with strong business momentum, continuing elevated procedural growth and a robust capital order book.

Innovation and Growth

SYK's strategic decision to divest its US spine business reflects its commitment to invest in innovation and areas with better growth potential.

Robotic Advancements

These innovations highlight Stryker's continued global leadership and commitment to orthopedic robotic advancements.

Strategic Divestiture

The proposed divestiture is seen as a positive move as it allows SYK to focus on higher growth segments and areas where it has a competitive advantage.

Negative Factors

Earnings Impact

The deal would be dilutive to its operating margin by 0-20 bps and dilutive to its 2025 EPS by $0.20-0.30.

Revenue Decline

The decline in SYK's global spinal implants business revenue was primarily due to a decrease in the US market.

Stryker Business Overview & Revenue Model

Company Description

Stryker Corporation operates as a medical technology company. The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine. The Orthopaedics and Spine segment provides implants for use in hip and knee joint replacements, and trauma and extremities surgeries. This segment also offers spinal implant products comprising cervical, thoracolumbar, and interbody systems that are used in spinal injury, deformity, and degenerative therapies. The MedSurg and Neurotechnology segment offers surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, and other medical device products that are used in various medical specialties. This segment also provides neurotechnology products, which include products used for minimally invasive endovascular techniques; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke; and craniomaxillofacial implant products, including cranial, maxillofacial, and chest wall devices, as well as dural substitutes and sealants. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 75 countries. Stryker Corporation was founded in 1941 and is headquartered in Kalamazoo, Michigan.

How the Company Makes Money

Stryker Corporation generates revenue primarily through the sale of its diverse portfolio of medical products and technologies. The company operates in various segments, with Orthopedics focusing on implants for joint replacement and trauma surgeries. The MedSurg segment includes surgical instruments and endoscopic systems, while the Neurotechnology and Spine segment offers products for neurological and spinal treatments. Stryker's revenue model is based on both direct sales to hospitals and healthcare providers and through a network of distributors globally. The company also benefits from strategic acquisitions and partnerships that expand its product offerings and market reach. Additionally, Stryker invests heavily in research and development to drive innovation and maintain a competitive edge in the medical technology industry.

Stryker Financial Statement Overview

Summary

Stryker demonstrates strong financial health, with robust revenue growth, healthy profitability margins, and effective cash flow management. The company has improved its debt position and maintains a balanced financial structure, positioning it well for future growth.

Income Statement

Stryker shows strong revenue growth with a 10.2% increase from 2023 to 2024, indicating a positive growth trajectory. The Gross Profit Margin in 2024 is robust at 63.9%, and the Net Profit Margin is healthy at 13.2%. However, there is a slight decline in EBIT Margin from 19% in 2023 to 16.3% in 2024, suggesting some pressure on operating profitability.

Balance Sheet

Stryker has improved its financial stability with a reduction in total debt from 2023 to 2024, leading to a strong Debt-to-Equity Ratio of 0.068 in 2024. The Equity Ratio stands at 48%, indicating a healthy balance between debt and equity. The Return on Equity is solid at 14.5%, reflecting efficient use of equity capital.

Cash Flow

The company exhibits strong cash flow management with a Free Cash Flow growth of 11.2% from 2023 to 2024. The Operating Cash Flow to Net Income ratio is robust at 1.42, demonstrating solid cash generation capabilities. The Free Cash Flow to Net Income ratio is also strong at 1.16, indicating efficient conversion of profits into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.59B	20.50B	18.45B	17.11B	14.35B
	Gross Profit
14.44B	13.10B	11.58B	10.97B	9.06B
	EBIT
3.69B	3.89B	2.84B	2.58B	2.22B
	EBITDA
5.72B	4.93B	4.54B	4.65B	3.75B
	Net Income Common Stockholders
2.99B	3.17B	2.36B	1.99B	1.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.40B	3.05B	1.93B	3.02B	3.02B
	Total Assets
42.97B	39.91B	36.88B	34.63B	34.33B
	Total Debt
1.41B	12.99B	13.05B	12.47B	13.23B
	Net Debt
-2.24B	10.02B	11.20B	9.53B	10.29B
	Total Liabilities
22.34B	21.32B	20.27B	19.75B	21.25B
	Stockholders Equity
20.63B	18.59B	16.62B	14.88B	13.08B
Cash Flow		Free Cash Flow
3.49B	3.14B	2.04B	2.74B	2.79B
	Operating Cash Flow
4.24B	3.71B	2.62B	3.26B	3.28B
	Investing Cash Flow
-3.00B	-962.00M	-2.92B	-859.00M	-4.70B
	Financing Cash Flow
-525.00M	-1.59B	-749.00M	-2.37B	-11.00M

Stryker Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 348.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYK, the sentiment is Negative. The current price of 348.39 is below the 20-day moving average (MA) of 365.54, below the 50-day MA of 377.43, and below the 200-day MA of 362.68, indicating a bearish trend. The MACD of -3.31 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 48.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYK.

Stryker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABT	79 Outperform	$220.33B	16.63	30.95%	1.76%	4.59%	134.50%
BSX	78 Outperform	$143.13B	77.57	9.03%	―	17.60%	16.84%
SYK	78 Outperform	$138.54B	46.76	15.26%	0.97%	10.23%	-5.74%
MDT	77 Outperform	$109.38B	25.92	8.42%	3.28%	2.72%	4.48%
ZBH	73 Outperform	$20.59B	23.34	7.24%	0.93%	3.84%	-9.29%
EW	68 Neutral	$40.94B	27.87	17.17%	―	-4.67%	6.23%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%

Stryker Corporate Events

Stryker Announces CFO Transition Effective April 2025

On January 28, 2025, Stryker announced the retirement of Glenn S. Boehnlein from his role as Vice President, Chief Financial Officer, effective April 1, 2025. Preston Wells, currently Vice President, Group Chief Financial Officer for Orthopaedics, will be promoted to Vice President, Chief Financial Officer on the same date. This leadership transition is expected to support Stryker’s ongoing growth, with Wells’s extensive experience in financial management and strategic leadership set to enhance the company’s operations and market position.