Stryker (SYK) AI Stock Analysis

Compare

2,411 Followers

Top Page

Stryker

(NYSE:SYK)

Rating:78Outperform

Price Target:―

Stryker's overall stock score reflects its strong financial performance and robust earnings outlook, supported by significant growth in key segments and successful M&A integration. While the stock exhibits positive technical trends, its high valuation and external challenges such as tariffs and supply chain issues are notable risks. The positive earnings call sentiment and strategic initiatives bolster confidence in future growth.

Positive Factors

Earnings

Stryker Corp reported strong first-quarter revenue and earnings per share, both exceeding consensus estimates.

Market Growth

Management is optimistic about market conditions, forecasting increased organic growth and confirming healthy utilization and capital trends.

Product Innovation

Stryker Corp is firing on all cylinders as it continues to innovate, having soft-launched Mako spine and shoulder applications and continuing to benefit from its 'super cycle' of new products.

Negative Factors

Earnings Guidance

Stryker Corp's EPS guidance was lowered due to the previously disclosed Inari Medical dilution.

Tariff Impact

There are expectations for $200M of tariff impacts.

Stryker (SYK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$144.19B

Dividend Yield0.89%

Average Volume (3M)1.08M

Price to Earnings (P/E)50.9

Beta (1Y)0.67

Revenue Growth10.76%

EPS Growth-15.22%

CountryUS

Employees53,000

SectorHealthcare

Sector Strength58

IndustryMedical - Devices

Share Statistics

EPS (TTM)2.84

Shares Outstanding382,164,860

10 Day Avg. Volume884,711

30 Day Avg. Volume1,076,616

Financial Highlights & Ratios

PEG Ratio2.21

Price to Book (P/B)5.56

Price to Sales (P/S)0.00

P/FCF Ratio45.42

Enterprise Value/Market Cap0.72

Enterprise Value/Revenue1.16

Enterprise Value/Gross Profit7.02

Enterprise Value/Ebitda4.75

Forecast

1Y Price Target

$432.67

Price Target Upside14.73% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering16

Stryker Business Overview & Revenue Model

Company DescriptionStryker 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 MoneyStryker Corporation generates revenue primarily through the sale of its diverse range of medical technology products across its three main business segments. The Orthopaedics segment includes products for knee, hip, and trauma surgeries, while the MedSurg segment offers surgical instruments, endoscopic systems, and patient care solutions. The Neurotechnology & Spine segment includes products for neurosurgery, neurovascular interventions, and spinal procedures. Stryker also earns income from service and repair contracts, as well as leasing agreements for some of its capital equipment. The company benefits from strategic partnerships with hospitals, research institutions, and healthcare providers, which enhance its market reach and drive sales. Additionally, Stryker invests in research and development to innovate and expand its product offerings, further supporting its revenue growth.

Stryker Key Performance Indicators (KPIs)

Any

Medsurg and Neurotechnology Revenue Breakdown

Medsurg and Neurotechnology Revenue Breakdown
Provides insight into Stryker's revenue from its Medsurg and Neurotechnology segments, highlighting areas of growth and the company's focus within these innovative medical fields.

Chart InsightsStryker's MedSurg & Neurotechnology segment has shown consistent growth, with notable increases in Neuro Cranial and Endoscopy revenues. The latest earnings call highlights strong U.S. performance and strategic M&A activities, such as the Inari Medical acquisition, which are driving this growth. Despite challenges like tariffs and supply chain disruptions, the company remains optimistic, raising its full-year guidance. This momentum, particularly in the U.S. market, underscores Stryker's strategic focus on expanding its operating margin and capitalizing on procedural demand.

Data provided by:

Main Street Data

Stryker Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 0.84%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong sales growth and successful M&A activities, with positive contributions from new product launches and international markets. However, challenges such as tariffs and supply chain disruptions present hurdles. Despite these issues, the overall sentiment remains positive due to robust performance and optimistic guidance.

Q1-2025 Updates

Positive Updates

Robust Organic Sales Growth

Stryker delivered a robust organic sales growth of 10.1% in the first quarter, with double-digit growth in MedSurg & Neurotechnology and high-single-digit growth in orthopedics.

Strong U.S. Performance

There was a strong U.S. performance with double-digit organic growth in trauma and extremities, neurocranial, medical, endoscopy, and instruments businesses.

International Market Growth

International sales saw healthy growth, particularly in Australia, New Zealand, Japan, and Europe, positioning international markets as significant catalysts for future growth.

EPS Growth

Stryker delivered quarterly adjusted EPS of $2.84, reflecting a 13.6% growth compared to the first quarter of 2024.

Successful M&A Activity

The acquisition of Inari Medical was completed, with integration going well. The sale of the U.S. Spinal Implants business was also completed.

Positive Revenue Guidance

Full-year organic sales growth is anticipated at 8.5% to 9.5% with adjusted EPS guidance of $13.20 to $13.45.

Recognition for Workplace Culture

Stryker was recognized for the 15th consecutive year on Great Place to Work's 100 best companies to work for list.

Strong Demand for Robotic-Assisted Surgery

Mako had its best-ever Q1 for installations in the U.S. and worldwide, with high utilization rates driving growth in hips and knees businesses.

Negative Updates

Impact of Tariffs

Stryker anticipates a $200 million impact from tariffs in 2025, affecting operating margins.

Supply Chain Disruptions

Supply chain disruptions affected the medical business, expected to continue through Q2.

Currency Translation Impact

There was a $0.03 unfavorable impact on EPS from currency translation.

Challenges in the U.S. Spine Business

The U.S. spinal implants business was flat organically, and its results will no longer be included after Q2 due to the sale.

Company Guidance

During the first quarter of 2025, Stryker demonstrated robust financial performance, achieving an impressive 10.1% organic sales growth, despite facing challenges like one fewer selling day. The MedSurg & Neurotechnology segment saw double-digit growth, while orthopedics posted high single-digit growth. Notably, the U.S. market led with strong double-digit organic growth, particularly in trauma, extremities, neurocranial, medical, endoscopy, and instruments businesses, whereas international markets, notably Australia, New Zealand, Japan, and Europe, also experienced healthy growth. The company's quarterly adjusted EPS grew by 13.6%, reaching $2.84, driven by strong sales and margin expansion. Following the first quarter's momentum, Stryker raised its full-year guidance, anticipating organic sales growth between 8.5% and 9.5% and adjusted EPS in the range of $13.20 to $13.45. The company's strategic priorities included the successful integration of Inari Medical, completed in February, and the sale of its U.S. Spinal Implants business. Additionally, Stryker aims to expand its operating margin by approximately 100 basis points, despite challenges such as tariffs, dilution from the Inari acquisition, and the loss from spinal implant contributions. The company also highlighted the ongoing strength in procedural demand, with capital products demand remaining robust, bolstered by strong Mako installations and utilization rates.

Stryker Financial Statement Overview

Summary

Stryker demonstrates strong financial health with consistent revenue growth, robust profitability margins, and effective cash flow management. The slight decline in EBIT Margin and some operational pressures slightly impact the score.

Income Statement

Very Positive

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

Positive

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
23.22B	22.59B	20.50B	18.45B	17.11B	14.35B
	Gross Profit
14.76B	14.44B	13.10B	11.58B	10.97B	9.06B
	EBIT
3.66B	3.69B	3.89B	2.84B	2.58B	2.22B
	EBITDA
5.32B	5.72B	4.93B	4.54B	4.65B	3.75B
	Net Income Common Stockholders
2.86B	2.99B	3.17B	2.36B	1.99B	1.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.41B	4.49B	3.05B	1.93B	3.02B	3.02B
	Total Assets
46.01B	42.97B	39.91B	36.88B	34.63B	34.33B
	Total Debt
14.38B	13.60B	12.99B	13.05B	12.47B	13.23B
	Net Debt
12.06B	9.95B	10.02B	11.20B	9.53B	10.29B
	Total Liabilities
0.00	22.34B	21.32B	20.27B	19.75B	21.25B
	Stockholders Equity
46.01B	20.63B	18.59B	16.62B	14.88B	13.08B
Cash Flow		Free Cash Flow
3.58B	3.49B	3.14B	2.04B	2.74B	2.79B
	Operating Cash Flow
4.29B	4.24B	3.71B	2.62B	3.26B	3.28B
	Investing Cash Flow
-6.73B	-3.00B	-962.00M	-2.92B	-859.00M	-4.70B
	Financing Cash Flow
2.43B	-525.00M	-1.59B	-749.00M	-2.37B	-11.00M

Stryker Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price377.12

Price Trends

50DMA

372.31

Positive

100DMA

377.17

Negative

200DMA

372.04

Positive

Market Momentum

MACD

0.62

Positive

RSI

45.48

Neutral

STOCH

17.00

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYK, the sentiment is Neutral. The current price of 377.12 is below the 20-day moving average (MA) of 382.14, above the 50-day MA of 372.31, and above the 200-day MA of 372.04, indicating a neutral trend. The MACD of 0.62 indicates Positive momentum. The RSI at 45.48 is Neutral, neither overbought nor oversold. The STOCH value of 17.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SYK.

Stryker Risk Analysis

Stryker disclosed 29 risk factors in its most recent earnings report. Stryker reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Stryker Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABT	80 Outperform	$235.96B	17.59	30.66%	1.74%	5.00%	139.98%
SYK	78 Outperform	$144.19B	50.92	14.26%	0.89%	10.76%	-15.22%
MDT	75 Outperform	$111.93B	24.17	9.49%	3.21%	3.62%	31.18%
BSX	71 Outperform	$147.56B	73.08	9.65%	―	19.35%	14.31%
EW	71 Outperform	$44.08B	50.21	16.73%	―	-9.84%	-35.77%
ZBH	70 Outperform	$18.06B	20.23	7.31%	1.05%	3.30%	-2.39%
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%

* Healthcare Sector Average

Performance Comparison

SYK

Stryker

377.30

35.76

10.47%

ABT

Abbott Laboratories

134.01

32.59

32.13%

BSX

Boston Scientific

101.49

25.30

33.21%

Edwards Lifesciences

74.82

-12.05

-13.87%

MDT

Medtronic

87.92

10.58

13.68%

ZBH

Zimmer Biomet Holdings

91.28

-14.81

-13.96%

Stryker Corporate Events

Shareholder Meetings

Stryker Shareholders Approve Amendments at Annual Meeting

Neutral

May 13, 2025

At the Annual Meeting of Shareholders held on May 8, 2025, Stryker Corporation’s shareholders approved amendments to several incentive and stock purchase plans, increasing the number of shares available and extending the plans’ duration. Additionally, all ten directors were re-elected, Ernst & Young LLP was ratified as the independent auditor, and a resolution on executive compensation was approved, while a proposal on political spending transparency was not presented.

The most recent analyst rating on (SYK) stock is a Buy with a $392.00 price target. To see the full list of analyst forecasts on Stryker stock, see the SYK Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.