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Stryker Corp SYK

Morningstar Rating
$355.85 +2.63 (0.74%)
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Company Report

Stryker Earnings: A Strong Finish to a Strong Year Sets Up For Continued Growth in 2024

Stryker capped off a strong year with more of the same in the fourth quarter, and we’ve slightly raised our fair value estimate to $242 per share. On the whole, full-year orthopedics and spine results nearly hit our estimates. In contrast, instruments and endoscopy substantially exceeded our 2023 projections. Though this outperformance wasn’t enough to materially shift our valuation, we incorporated more optimistic estimates for 2024-25 that did lift our fair value estimate, reflecting the firm new product launches, and strong ongoing execution. Trends in increased medical utilization should also support stronger top-line growth. Stryker’s ability to introduce meaningful innovation reinforces our view of the firm’s wide economic moat. For instance, the rollout of the new 1788 camera—Stryker’s 26th generation product since 1978—now utilizes fluorescence and infrared imaging to show what the human eye cannot discern. This is especially helpful for visualizing blood flow through tissue that surgeons have stitched together, a critical indicator for surgical success.

Price vs Fair Value

SYK is trading at a 47% premium.
Price
$355.85
Fair Value
$834.00
Uncertainty
Medium
1-Star Price
$354.40
5-Star Price
$799.60
Economic Moat
Ngpl
Capital Allocation
Ytjfhtrs

Bulls Say, Bears Say

Bulls

Stryker made the most of its three-year head start in placing its Mako robots in hospitals, leaving Zimmer Biomet and Johnson & Johnson to play catch-up.

Bears

Zimmer Biomet's progress with its Rosa robot could put a crimp in Stryker's robust growth in knees on its Mako robot.

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News

Trading Information

Previous Close Price
$353.22
Day Range
$352.10356.84
52-Week Range
$249.98357.40
Bid/Ask
$343.87 / $358.00
Market Cap
$135.32 Bil
Volume/Avg
714,110 / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
33.57
Price/Sales
6.66
Dividend Yield (Trailing)
0.86%
Dividend Yield (Forward)
0.90%
Total Yield
0.86%

Company Profile

Stryker designs, manufactures, and markets an array of medical equipment, instruments, consumable supplies, and implantable devices. The product portfolio includes hip and knee replacements, endoscopy systems, operating room equipment, embolic coils, hospital beds and gurneys, and spinal devices. Stryker remains one of the three largest competitors in reconstructive orthopedic implants and holds the leadership position in operating room equipment. Just over one fourth of Stryker's total revenue currently comes from outside the United States.
Sector
Healthcare
Industry
Medical Devices
Stock Style Box
Large Core
Total Number of Employees
52,000

Competitors

Valuation

Metric
SYK
SNN
ZBH
Price/Earnings (Normalized)
33.5716.0116.60
Price/Book Value
7.272.222.07
Price/Sales
6.662.093.56
Price/Cash Flow
32.4212.3213.31
Price/Earnings
SYK
SNN
ZBH

Financial Strength

Metric
SYK
SNN
ZBH
Quick Ratio
0.860.830.65
Current Ratio
1.582.191.61
Interest Coverage
11.322.816.30
Quick Ratio
SYK
SNN
ZBH

Profitability

Metric
SYK
SNN
ZBH
Return on Assets (Normalized)
10.75%6.86%7.45%
Return on Equity (Normalized)
23.27%12.92%12.87%
Return on Invested Capital (Normalized)
14.37%9.28%9.78%
Return on Assets
SYK
SNN
ZBH
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Medical Devices Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ABT
Abbott LaboratoriesFprfm$208.3 Bil
MDT
Medtronic PLCKccth$112.9 Bil
BSX
Boston Scientific CorpWhsjlf$98.9 Bil
EW
Edwards Lifesciences CorpBshlm$52.3 Bil
DXCM
DexCom IncLlmt$47.1 Bil
ZBH
Zimmer Biomet Holdings IncCwmc$25.7 Bil
ALGN
Align Technology IncTwhzkzz$23.1 Bil
PHG
Koninklijke Philips NV ADRWbknp$18.4 Bil
PODD
Insulet CorpKtqhvrt$11.7 Bil

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