Stryker Corp. (SYK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DexCom, Inc.

Abbott Laboratories

Intuitive Surgical, Inc.

Medtronic Plc

Edwards Lifesciences Corp.

Agilent Technologies, Inc.

Thermo Fisher Scientific, Inc.

Stryker Corp.

IDEXX Laboratories, Inc.

Danaher Corp.

Becton, Dickinson & Co.

Why is Stryker Corp. ?

Company has very low debt and has enough cash to service the debt requirements

Flat results in Jun 25

DIVIDEND PAYOUT RATIO(Y) Lowest at 36.72%
ROCE(HY) Lowest at 14.25%
DEBT-EQUITY RATIO (HY) Highest at 69.2 %

With ROCE of 14.53%, it has a very expensive valuation with a 4.55 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.52%, its profits have risen by 18.8% ; the PEG ratio of the company is 1.9

Below par performance in long term as well as near term

Along with generating -6.52% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Stryker Corp. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Stryker Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Stryker Corp.

-6.52%

0.21

21.83%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.10%

EBIT Growth (5y)

14.82%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

2.44

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

0.64

Tax Ratio

14.22%

Dividend Payout Ratio

41.74%

Pledged Shares

Institutional Holding

81.62%

ROCE (avg)

13.69%

ROE (avg)

18.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.01

EV to EBIT

31.29

EV to EBITDA

25.94

EV to Capital Employed

4.55

EV to Sales

6.94

PEG Ratio

1.86

Dividend Yield

0.85%

ROCE (Latest)

14.53%

ROE (Latest)

20.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4,766 MM

DIVIDEND PER SHARE(HY)

Highest at USD 6.32

RAW MATERIAL COST(Y)

Fallen by -1.59% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.32 times

EPS(Q)

Highest at USD 2.29

-12What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 36.72%

ROCE(HY)

Lowest at 14.25%

DEBT-EQUITY RATIO (HY)

Highest at 69.2 %

INTEREST(Q)

Highest at USD 159 MM

Here's what is working for Stryker Corp.

Operating Cash Flow

Highest at USD 4,766 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 6.32 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

EPS

Highest at USD 2.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 6.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.59% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 296 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Stryker Corp.

Interest

At USD 159 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend Payout Ratio

Lowest at 36.72% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Interest

Highest at USD 159 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 69.2 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio