Stryker (SYK) AI Stock Analysis

• Market Cap: $141.08B
• Dividend Yield: 0.9%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 48.8
• Beta (1Y): 0.70
• Revenue Growth: 11.36%
• EPS Growth: -15.66%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 3.13
• Shares Outstanding: 382,307,300
• 10 Day Avg. Volume: 1,486,255
• 30 Day Avg. Volume: 1,180,913
• PEG Ratio: -7.96
• Price to Book (P/B): 6.65
• Price to Sales (P/S): 6.07
• P/FCF Ratio: 39.34
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 7.03
• Enterprise Value/Gross Profit: 11.31
• Enterprise Value/Ebitda: 36.34
• 1Y Price Target: $436.00
• Price Target Upside: 18.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 75 Outperform
• Price Target: $432.00 ▲(17.07% Upside)

Stryker's overall stock score reflects strong financial performance and positive earnings call sentiment as the most significant factors. While the technical analysis indicates some short-term weakness, the company's robust growth and strategic focus on innovation support a positive outlook. The high P/E ratio suggests potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent double-digit sales growth indicates strong market demand and effective sales strategies, supporting long-term revenue expansion.

Innovation and Product Launches

Successful product innovations and launches, like Mako, enhance competitive positioning and drive future growth in key markets.

Financial Health

A well-managed balance sheet with manageable leverage supports financial stability and the capacity to invest in growth opportunities.

Negative Factors

Supply Chain Challenges

Ongoing supply chain issues could hinder product availability and sales growth, impacting operational efficiency and customer satisfaction.

Tariff Impact

Tariff-related costs may pressure margins and profitability, affecting financial performance and strategic pricing flexibility.

Net Profit Margin Pressure

Decreasing net profit margins suggest rising costs or pricing pressures, which could affect long-term profitability if not addressed.

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 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 solid financial health with strong revenue growth and profitability margins. The balance sheet reflects a stable capital structure, while cash flow management remains robust. Although there is a slight increase in leverage, the company maintains a strong equity base and effective cash generation capabilities, positioning it well for future growth.

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	23.82B	22.59B	20.50B	18.45B	17.11B	14.35B
Gross Profit	14.81B	13.98B	12.49B	11.04B	10.71B	8.75B
EBITDA	4.61B	4.94B	5.06B	4.02B	3.61B	3.08B
Net Income	2.92B	2.99B	3.17B	2.36B	1.99B	1.60B
Balance Sheet
Total Assets	46.33B	42.97B	39.91B	36.88B	34.63B	34.33B
Cash, Cash Equivalents and Short-Term Investments	2.46B	4.49B	3.05B	1.93B	3.02B	3.02B
Total Debt	17.13B	14.12B	13.49B	13.53B	12.90B	14.43B
Total Liabilities	25.14B	22.34B	21.32B	20.27B	19.75B	21.25B
Stockholders Equity	21.19B	20.63B	18.59B	16.62B	14.88B	13.08B
Cash Flow
Free Cash Flow	4.02B	3.49B	3.14B	2.04B	2.74B	2.79B
Operating Cash Flow	4.77B	4.24B	3.71B	2.62B	3.26B	3.28B
Investing Cash Flow	-6.71B	-3.00B	-962.00M	-2.92B	-859.00M	-4.70B
Financing Cash Flow	2.40B	-525.00M	-1.59B	-749.00M	-2.37B	-11.00M

Stryker Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 369.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 369.02 is below the 20-day moving average (MA) of 381.09, below the 50-day MA of 385.27, and below the 200-day MA of 378.64, indicating a bearish trend. The MACD of -4.78 indicates Positive momentum. The RSI at 35.26 is Neutral, neither overbought nor oversold. The STOCH value of 34.25 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
MDT	80 Outperform	$120.85B	26.01	9.73%	2.99%	4.98%	22.08%
ABT	79 Outperform	$232.44B	16.70	27.65%	1.74%	5.85%	152.28%
SYK	75 Outperform	$141.08B	48.83	14.25%	0.90%	11.36%	-15.66%
BSX	75 Outperform	$145.48B	58.43	11.16%	―	21.45%	36.19%
ZBH	74 Outperform	$19.46B	23.92	6.57%	0.98%	4.11%	-14.43%
EW	69 Neutral	$44.77B	52.05	39.30%	―	-5.23%	-39.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%