Stryker Corp (SYK) stock analysis

P/E below its 5-year median

Stryker's P/E of 33.9 is below its own 5-year median of 42.1.

P/E above the industry

Stryker's P/E of 33.9 is above the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

EV/EBITDA below its 5-year median

Stryker's EV/EBITDA of 18.9 is below its 5-year median of 35.1.

P/S above the industry

Stryker's price-to-sales of 4.61 is above the Surgical, Medical, and Dental Instruments and Supplies median of 2.82 (book value is negative, so we use sales).

Trading below fair value

The share price of $318.79 is below our fair value estimate of $385.07.

Margin of safety under 20%

The price is 17.2% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 10.8% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 10.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 23.1% over the last twelve months, against a 5-year average of 15.2% a year.

Growing slower than the industry

Revenue grew 7.9% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Guidance raised

Stryker raised its full year 2026 adjusted net earnings per diluted share outlook on Jul 30, 2026.

Gross margin improving

Gross margin was 65.3% over the last twelve months, against 64.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 15.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 13.8% over the last twelve months, against a 5-year average of 13.2%.

Net margin above the industry

Stryker's net margin of 13.8% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 36.5% of total debt.

Interest well covered

Operating income covers interest expense 9.3 times.

Short-term assets cover short-term debts

Current assets are 2.18 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.82; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Stryker paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Stryker yields 1.1%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 36.8% of net income.

Covered by free cash flow

Dividends take 29.1% of free cash flow.