SYK

STRYKER CORP

Healthcare • CIK: 0000310764

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Market Cap
$134.33B
P/E (TTM)
41.4x
Rev Growth (TTM)
+11.2%
Net Margin (TTM)
12.9%
FCF Yield (TTM)
3.2%
FCF Margin (TTM)
17.1%

Filing Intelligence

6.0/10
10-K filed Feb 11, 2026 • FY 2025

Executive Summary

Stryker achieved robust revenue growth of 11.2% in 2025, driven by increased unit volume and higher prices across all businesses, supplemented by favorable currency exchange rates.. The MedSurg and...

Key Concerns

  • ●The company has significant contractual obligations totaling $20,869 million, including substantial debt repayments and lease payments...
  • ●Uncertainty regarding the ultimate cost of legal matters and tax positions presents a potential financial risk, with specific reserves...
  • ●Supply Chain Disruptions and Cost Inflation (medium)

Key Strengths

  • ●Stryker achieved robust revenue growth of 11.2% in 2025, driven by increased unit volume and higher prices across all businesses,...
  • ●The MedSurg and Neurotechnology segment significantly outperformed the Orthopaedics segment in revenue growth, indicating a strong market...
  • ●While gross margins appear stable, operating expenses (SG&A and R&D) increased at a faster pace than revenue, impacting operating leverage.
View Full Quarterly Insights →

LATEST EARNINGS

•
Q4 FY2025
•
2 months ago
•View source
Revenue
$7.17B
+11.4%
Net Income
$849.00M
+55.5%
EPS
$2.20
+56.0%
Gross
64.5%↓ -0.4%
Operating
25.2%↑ +16.2%
Net
11.8%↑ +3.3%
  • •Reported net sales increased 11.4% to $7.2 billion in Q4 and 11.2% to $25.1 billion for the full year.
  • •Organic net sales increased 11.0% in Q4 and 10.3% for the full year, driven by unit volume.
  • •Adjusted operating income margin increased 100 bps to 30.2% in Q4 and 26.3% for the full year.
  • •Adjusted EPS increased 11.5% to $4.47 in Q4 and 11.8% to $13.63 for the full year.
View Full Earnings →

Cash Flow Health

Free Cash Flow8/8 positive
TTM$4.3B
Q4 '25
$1.9B+39%
Q3 '25
$1.4B+46%
FCF Margin
TTM17.1%
Q4 '2526.1%+17%
Sector: 0.0%Top 10%
OCF Margin20.1%
OCF/NI1.55x
CapEx Coverage6.6x
FCF Yield3.2%
FCF Growth (2Y)+28%
Cash Conversion Cycle
266 days
DSO: 56+DIO: 210−DPO: 0
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldEst.
Est.1.0%
Div Yield1.0%
+
Est. Buyback1.3%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)1.0%
FCF Payout Ratio30.3%
Free Cash Flow (TTM)$4.3B
Capital Return / FCF30.0%
Est. Dividends Paid (TTM)$1.3B
Estimated: Buyback data estimated from FCF. Actual repurchase data not available for this company.
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
10.1%
Stable
-0.0% YoY-1.6%
P25MedianP75
75th pctl (med: -0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
14.0%
8Q: 15.7%
Asset Turnover
0.54x
8Q: 0.53x
Leverage (1+D/E)
–
Asset & CapEx Efficiency
Fixed Asset Turn
6.87x
8Q:6.63x
+55.8%
Invested Cap Turn
0.72x
8Q:0.73x
Flat
CapEx Intensity
2.2%
8Q:2.2%
CapEx/Depreciation
0.48x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$25.1B
$7.2B↑18.4%
$6.1B↑0.6%
$6.0B↑2.7%
$5.9B↓8.9%
$6.4B↑17.1%
$5.5B↑1.3%
$5.4B↑3.4%
$5.2B
Operating Income
$4.9B
$1.8B↑58.9%
$1.1B↑2.0%
$1.1B↑33.0%
$837.0M↑44.1%
$581.0M↓46.5%
$1.1B↑3.2%
$1.1B↑8.1%
$972.0M
Net Income
$3.2B
$849.0M↓1.2%
$859.0M↓2.8%
$884.0M↑35.2%
$654.0M↑19.8%
$546.0M↓34.5%
$834.0M↑1.1%
$825.0M↑4.7%
$788.0M
Operating Cash Flow
$5.0B
$2.1B↑39.2%
$1.5B↑38.6%
$1.1B↑344.4%
$250.0M↓87.1%
$1.9B↑31.0%
$1.5B↑132.9%
$633.0M↑210.3%
$204.0M
Free Cash Flow
$4.3B
$1.9B↑38.6%
$1.4B↑45.8%
$928.0M↑630.7%
$127.0M↓92.4%
$1.7B↑27.7%
$1.3B↑171.1%
$481.0M↑1200.0%
$37.0M
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
41.4x
Volatile
8Q: 168.1x-659%
High PEG ratio (5.0x) suggests expensive for growth
Valuation Lenses
Earnings
41.4x
vs – sector
Cash Flow
34.4x
EV/FCF vs –
Growth-Adj
5.0xPEG
Expensive for growth
Quality-Adj
4.1P/E per %ROIC
ROIC: 10.1%
Shareholder Returns
Dividend
1.0%
Buyback
–
Total Yield
1.0%
Market Cap$134.33B
EV$147.47B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
78/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)
–
8Q:–
Return on Invested Capital (ROIC)Top 25%
10.1%
8Q:–
Flat
vs Sector:-0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 14.0%
Asset Turnover: 0.54x

Earnings Quality

Cash Conversion

1.55x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin64.0%

Capital Efficiency

Invested Capital Turnover0.72x

Working Capital

Cash Conversion Cycle266 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
71/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
11.2%
OpInc Growth YoY
210.5%
EPS Growth YoY
8.2%
FCF 3Y CAGR
28.1%

Growth Quality Analysis

✓Efficient Growth: Free cash flow growing faster than revenue
✓Sustainability Index: 7.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
64.0%
Operating
19.5%
Top 25% in sector
Net
12.9%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+4.1 pts
FCF: 17.1% | Net: 12.9%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Net Debt / EBITDA
–Net Debt: $11.76B
Interest Coverage
–
Balance sheet risk & solvency analysis

Research

All research