STRYKER CORP (SYK) Stock Analysis

Analysis from 10-Q filed 2026-07-31. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 10.5%. FCF margin 18.2%. D/E 0.6x. Source: 10-Q filed 2026-07-31.

Metric	Value	Context
ROIC	10.5%	Near cost of capital
FCF Margin	18.2%	Strong cash generation
Debt/Equity	0.6x	Moderate leverage

ROIC 10.5% — Top 25% of sector peers. FCF margin 18.2% — Top 25%.

Explore STRYKER CORP: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for SYK: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: STRYKER CORP earns 10.5% ROIC, Top 25% in Healthcare

ROIC TTM 10.5%, sector median -7.4%, Top 25%. DuPont: NOPAT margin 15.5% × asset turnover 0.5x. Gross margin 65.0%. Operating margin 21.4%. Source: 10-Q filed 2026-07-31.

Metric	SYK	Rating	Context
Return on Invested Capital (ROIC)	10.5%	Adequate	Above sector median of -7.4%
Return on Equity (ROE)	16.6%	Good	Efficient use of shareholder equity
Gross Margin	65.0%	Excellent	Strong pricing power
Operating Margin	21.4%	Excellent	Efficient operations

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Cash Flow: STRYKER CORP generates $4.7B FCF at 18.2% margin, positive NaN/8 quarters

FCF TTM $4.7B. FCF margin 18.2%, Top 25%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-07-31.

Metric	SYK	Rating	Context
Free Cash Flow Margin	18.2%	Good	Excellent cash conversion
Free Cash Flow (TTM)	$4.7B	Good	Positive cash generation
OCF/Net Income	1.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: STRYKER CORP at 0.6x leverage, 9.6x interest coverage

Debt/Equity 0.6x. Total debt $14.9B, cash & investments $3.5B. Interest coverage 9.6x. Source: 10-Q filed 2026-07-31.

Metric	SYK	Rating	Context
Debt to Equity	0.6x	Good	Moderate leverage
Net Cash Position	$-11.5B	Warning	Net debt position
Interest Coverage	9.6x	Good	Comfortable debt service

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Valuation: STRYKER CORP trades at 28.3x earnings

P/E 28.3x. EV/Sales 4.5x. FCF yield 4.5%. Dividend yield 1.3%. Source: 10-Q filed 2026-07-31.

Metric	SYK	Rating	Context
P/E Ratio	28.3x	Adequate	Premium valuation
EV/Sales	4.5x	Good	Growth premium priced in
FCF Yield	4.5%	Good	Lower cash yield
Dividend Yield	1.3%	Adequate	Growth focus over income

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Capital Allocation: STRYKER CORP returns 1.2% shareholder yield

Total shareholder yield 1.2% (div 1.3%). Share count +0.3% YoY. Capital returned $1.3B TTM. Source: 10-Q filed 2026-07-31.

Metric	SYK	Rating	Context
Total Shareholder Yield	1.2%	Adequate	Dividend + buyback yield combined
Share Count Change (YoY)	0.3%	Adequate	Net dilution from issuance/SBC
Total Capital Returned (TTM)	$1.3B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	10.5%	Top 25%	-
Free Cash Flow Margin	18.2%	Top 25%	27.8x above
Gross Margin	65.0%	Top 50%	1.0x above
Operating Margin	21.4%	Top 25%	-
Return on Equity (ROE)	16.6%	Top 25%	-
P/E Ratio	28.3x	N/A	-

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Financial Scorecard

Metric	SYK	Rating	Sector Context
Return on Invested Capital (ROIC)	10.5%	Adequate	Top 25% of sector (median: -7.4%)
Free Cash Flow Margin	18.2%	Good	Top 25% of sector (median: 0.7%)
Gross Margin	65.0%	Excellent	Top 50% of sector (median: 63.7%)
Debt to Equity Ratio	62.3%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	28.3x	Adequate	Growth premium
Free Cash Flow Yield	4.5%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is STRYKER CORP's Return on Invested Capital (ROIC)?

STRYKER CORP (SYK) has a trailing twelve-month Return on Invested Capital (ROIC) of 10.5%. The 8-quarter median ROIC is 10.1% with a improving trend. Sector median -7.4%. Source: 10-Q filed 2026-07-31.

Q: What is STRYKER CORP's Free Cash Flow Margin?

STRYKER CORP (SYK) has a free cash flow margin of 18.2%, generating $4.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-07-31.

Q: What is STRYKER CORP's P/E ratio and how does it compare to peers?

STRYKER CORP (SYK) trades at a P/E ratio of 28.3x, which is above the sector median of N/A. EV/Sales 4.5x. FCF yield 4.5%. Source: 10-Q filed 2026-07-31.

Q: Does STRYKER CORP pay a dividend?

STRYKER CORP (SYK) currently pays a dividend yield of 1.3%. Total shareholder yield (dividend + buybacks) 1.2%. Source: 10-Q filed 2026-07-31.

Q: How much debt does STRYKER CORP have?

STRYKER CORP (SYK) has a debt-to-equity ratio of 0.6x with total debt of $14.9 billion. Interest coverage 9.6x. Net debt $11.5 billion. Source: 10-Q filed 2026-07-31.

Q: What is STRYKER CORP's revenue and earnings growth?

STRYKER CORP (SYK) grew revenue by 8.5% year-over-year. EPS +27.8% YoY. Source: 10-Q filed 2026-07-31.

Q: How does STRYKER CORP compare to competitors in Healthcare?

Compared to other companies in Healthcare, STRYKER CORP (SYK) shows: ROIC 10.5%, sector median -7.4% (Top 25%). FCF margin 18.2%, sector median 0.7% (Top 25%). Gross margin 65.0%, 1.2pp above sector median. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.

Q: What warning signs should I watch for with STRYKER CORP?

No quantitative warning flags fired for STRYKER CORP (SYK) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2026-07-31.

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Data Source: Data sourced from 10-Q filed 2026-07-31. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.