Stryker (SYK) AI Stock Analysis

• Market Cap: $136.15B
• Dividend Yield: 0.95%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 46.7
• Beta (1Y): 0.70
• Revenue Growth: 10.95%
• EPS Growth: -18.32%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 3.19
• Shares Outstanding: 382,423,650
• 10 Day Avg. Volume: 1,851,827
• 30 Day Avg. Volume: 1,613,705
• 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: 1.15
• Enterprise Value/Revenue: 6.43
• Enterprise Value/Gross Profit: 10.26
• Enterprise Value/Ebitda: 33.62
• 1Y Price Target: $430.60
• Price Target Upside: 21.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 13.49
• Revenue Forecast (FY): $25.00B

• Rating: 70 Outperform
• Price Target: $394.00 ▲(10.98% Upside)

Stryker's overall stock score is driven by strong financial performance and positive earnings call outcomes, reflecting robust growth and strategic execution. However, technical analysis indicates bearish trends, and the high P/E ratio suggests a premium valuation. Despite these challenges, the company's solid fundamentals and raised guidance support a positive outlook.

Positive Factors

Revenue Growth

Strong organic sales growth indicates robust demand across key business segments, supporting long-term revenue expansion and market leadership.

Market Position

Record Mako installations reinforce Stryker's leading position in the orthopedic market, enhancing its competitive advantage and growth potential.

Operating Margin Expansion

Continued operating margin expansion reflects operational efficiency and cost management, supporting profitability and shareholder value.

Negative Factors

Tariff Headwinds

Significant tariff impacts can pressure margins and profitability, posing a challenge to cost management and financial performance.

Supply Chain Disruptions

Supply chain issues can hinder product availability and operational efficiency, impacting sales and customer satisfaction in the long term.

Interest Expense Impact

Increased interest expenses from debt can reduce net income and limit financial flexibility, affecting investment and growth opportunities.

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 solid financial health with consistent revenue growth and strong profitability margins. The balance sheet is well-managed with a prudent level of debt, and cash flows are robust, supporting future growth and stability. While there are minor pressures on net profit margins, the company's financial position remains strong in the medical devices industry.

Income Statement

Stryker's income statement shows strong revenue growth with a TTM growth rate of 2.58%. The gross profit margin remains robust at 62.19%, indicating efficient cost management. However, the net profit margin has slightly decreased to 12.25% in the TTM, reflecting some pressure on profitability. Despite this, the company maintains healthy EBIT and EBITDA margins, suggesting solid operational performance.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.81, indicating manageable leverage. Return on equity is strong at 14.08%, showcasing effective use of shareholder funds. The equity ratio stands at 45.73%, highlighting a balanced capital structure. However, the increase in total debt over the periods warrants monitoring.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 12.50% in the TTM. The operating cash flow to net income ratio is 0.65, indicating good cash generation relative to earnings. The free cash flow to net income ratio of 0.84 suggests strong cash conversion, supporting the company's ability to fund operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.38B	22.59B	20.50B	18.45B	17.11B	14.35B
Gross Profit	15.27B	13.98B	12.49B	11.04B	10.71B	8.75B
EBITDA	4.66B	4.94B	5.06B	4.02B	3.61B	3.08B
Net Income	2.94B	2.99B	3.17B	2.36B	1.99B	1.60B
Balance Sheet
Total Assets	47.06B	42.97B	39.91B	36.88B	34.63B	34.33B
Cash, Cash Equivalents and Short-Term Investments	3.34B	4.49B	3.05B	1.93B	3.02B	3.02B
Total Debt	16.59B	14.12B	13.49B	13.53B	12.90B	14.43B
Total Liabilities	25.27B	22.34B	21.32B	20.27B	19.75B	21.25B
Stockholders Equity	21.79B	20.63B	18.59B	16.62B	14.88B	13.08B
Cash Flow
Free Cash Flow	4.07B	3.49B	3.14B	2.04B	2.74B	2.79B
Operating Cash Flow	4.83B	4.24B	3.71B	2.62B	3.26B	3.28B
Investing Cash Flow	-4.86B	-3.00B	-962.00M	-2.92B	-859.00M	-4.70B
Financing Cash Flow	-588.00M	-525.00M	-1.59B	-749.00M	-2.37B	-11.00M

Stryker Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 355.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 355.02 is below the 20-day moving average (MA) of 369.77, below the 50-day MA of 373.62, and below the 200-day MA of 377.96, indicating a bearish trend. The MACD of -5.18 indicates Positive momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 18.69 is Positive, 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
BSX	79 Outperform	$148.27B	53.50	12.66%	―	21.62%	54.80%
EW	79 Outperform	$48.39B	35.79	13.59%	―	0.19%	65.58%
ABT	77 Outperform	$219.72B	15.85	30.62%	1.87%	6.37%	142.39%
MDT	71 Outperform	$118.26B	25.46	9.72%	3.04%	4.98%	22.08%
SYK	70 Outperform	$136.15B	46.75	14.04%	0.95%	10.95%	-18.32%
ZBH	65 Neutral	$17.54B	21.90	6.41%	1.08%	5.47%	-23.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Stryker Corporate Events

Stryker Corp’s Earnings Call Highlights Robust Growth

Stryker Corp’s recent earnings call painted a picture of robust business performance, marked by significant growth in organic sales and earnings per share. The company demonstrated its market leadership through successful acquisitions and record Mako installations. However, challenges such as tariffs and supply chain disruptions presented notable obstacles.

Stryker Corp Reports Strong Q3 2025 Results

Stryker Corporation is a leading global medical technology company that specializes in providing innovative products and services in MedSurg, Neurotechnology, and Orthopaedics, aiming to enhance patient and healthcare outcomes worldwide. In its third-quarter 2025 earnings report, Stryker announced a 10.3% increase in net sales, reaching $6.1 billion, with a notable adjusted earnings per share growth of 11.1% to $3.19. The company’s MedSurg and Neurotechnology segment saw a robust 14.4% increase in net sales, while Orthopaedics experienced a 3.9% rise, with significant growth when excluding divestitures. Stryker’s reported operating income margin stood at 18.7%, with an adjusted margin of 25.6%, reflecting strong operational performance. Looking ahead, Stryker has raised its full-year 2025 guidance, expecting organic net sales growth between 9.8% to 10.2% and adjusted net earnings per share in the range of $13.50 to $13.60, driven by sustained product demand and margin expansion efforts.