Stryker (SYK) AI Stock Analysis

• Market Cap: $146.01B
• Dividend Yield: 0.87%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 50.5
• Beta (1Y): 0.70
• Revenue Growth: 11.36%
• EPS Growth: -15.66%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Devices
• EPS (TTM): 3.13
• Shares Outstanding: 382,307,300
• 10 Day Avg. Volume: 1,233,678
• 30 Day Avg. Volume: 1,282,359
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 7.22
• Enterprise Value/Gross Profit: 11.65
• Enterprise Value/Ebitda: 38.12
• 1Y Price Target: $435.77
• Price Target Upside: 14.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 72 Outperform
• Price Target: $424.00 ▲(11.11% Upside)

Stryker's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust sales growth and a positive outlook. However, the high valuation and mixed technical indicators temper the score, suggesting some caution for potential investors.

Positive Factors

Earnings

SYK delivered solid diversified results with revenue and earnings exceeding expectations.

Guidance

FY25 guidance was raised, indicating stronger expected organic growth and adjusted EPS.

Product Performance

SYK continues to execute well with a range of new products contributing to its strong revenue growth.

Negative Factors

Physician Sentiment

Physicians have generally been unenthusiastic on the prospect of using certain reprocessed instrumentation citing liability and efficacy concerns even as it was foisted upon them by hospital administrations.

Product Segment

The reprocessing segment has on average only accounted for about 1.9% of the company's overall revenue over the past ten years and grown at a 5.7% CAGR below SYK's corporate average.

Valuation

Shares reacted negatively post-results due to a high valuation relative to peers.

Stryker Business Overview & Revenue Model

Company Description

Stryker Corporation (SYK) is a leading global medical technology company that specializes in the development and manufacturing of innovative medical devices, equipment, and surgical instruments. Founded in 1941, Stryker operates in various sectors including orthopedics, medical and surgical, neurotechnology, and spine. The company’s core products range from joint replacement implants and surgical navigation systems to hospital beds and emergency medical equipment, catering to healthcare providers and facilities worldwide.

How the Company Makes Money

Stryker generates revenue primarily through the sale of its medical devices and equipment across several key segments. The company's revenue model is heavily reliant on product sales, which include orthopedic implants, surgical instruments, and capital equipment such as operating room tables and lights. Additionally, Stryker benefits from recurring revenue streams through the sale of instruments and implants used in surgical procedures, as well as service contracts for maintenance and support of their equipment. Significant partnerships with hospitals, surgical centers, and other healthcare providers enhance Stryker's market reach and contribute to its earnings. Furthermore, the company's commitment to research and development allows it to consistently innovate and expand its product offerings, which is crucial for maintaining competitive advantage and driving sales growth.

Stryker Financial Statement Overview

Summary

Stryker demonstrates strong financial health with solid revenue growth and profitability margins. The balance sheet reflects a stable capital structure, while cash flow management remains robust. A slight increase in leverage is offset by a strong equity base and effective cash generation capabilities.

Income Statement

Stryker has shown strong revenue growth, with a noticeable increase in Total Revenue from $22.6 billion in 2024 to $23.2 billion TTM. The Gross Profit Margin is robust at approximately 63.6% TTM. Despite a slight decline in Net Income, the Net Profit Margin remains healthy at approximately 12.3% TTM, indicating stability in profitability. The EBIT and EBITDA margins are also solid at 15.8% and 22.9% TTM, respectively, showcasing efficient operations.

Balance Sheet

The company's balance sheet reflects a balanced financial structure. The Debt-to-Equity Ratio has increased slightly to 0.80 TTM, suggesting a moderate leverage level. However, the Return on Equity (ROE) remains strong at 13.7% TTM, indicating effective use of shareholders' equity. The Equity Ratio is 45.5% TTM, showing a substantial equity base, which supports financial stability.

Cash Flow

Stryker's cash flow performance is commendable, with a Free Cash Flow Growth Rate of 2.6% TTM, reflecting consistent cash generation. The Operating Cash Flow to Net Income Ratio of 1.50 TTM indicates that the company generates ample cash relative to its net income. The Free Cash Flow to Net Income Ratio of 1.25 TTM further underscores strong cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.22B	22.59B	20.50B	18.45B	17.11B	14.35B
Gross Profit	14.39B	13.98B	12.49B	11.04B	10.71B	8.75B
EBITDA	4.39B	4.94B	5.06B	4.02B	3.61B	3.08B
Net Income	2.86B	2.99B	3.17B	2.36B	1.99B	1.60B
Balance Sheet
Total Assets	46.01B	42.97B	39.91B	36.88B	34.63B	34.33B
Cash, Cash Equivalents and Short-Term Investments	2.41B	4.49B	3.05B	1.93B	3.02B	3.02B
Total Debt	17.36B	14.12B	13.49B	13.53B	12.90B	14.43B
Total Liabilities	25.08B	22.34B	21.32B	20.27B	19.75B	21.25B
Stockholders Equity	20.93B	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: Positive
• Last Price: 381.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYK, the sentiment is Positive. The current price of 381.61 is below the 20-day moving average (MA) of 386.44, below the 50-day MA of 386.72, and above the 200-day MA of 377.91, indicating a bullish trend. The MACD of -2.08 indicates Negative momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 89.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SYK.

Stryker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDT	80 Outperform	$119.18B	25.74	9.49%	3.03%	3.62%	31.18%
ABT	79 Outperform	$229.31B	16.48	31.01%	1.78%	5.85%	152.28%
EW	78 Outperform	$45.95B	53.45	15.71%	―	-5.23%	-39.83%
ZBH	74 Outperform	$20.35B	25.02	6.52%	0.94%	4.11%	-14.43%
BSX	73 Outperform	$152.87B	61.33	11.71%	―	21.45%	36.19%
SYK	72 Outperform	$146.01B	50.54	14.25%	0.87%	11.36%	-15.66%
Sector *	47 Neutral	C$212.32M	0.03	-30.33%	3.13%	19.38%	-2.35%

Stryker Corporate Events

Stryker Shareholders Approve Amendments at Annual Meeting

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.