SYK

STRYKER CORP

HealthcareCIK 0000310764

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Market Cap
$125.68B
P/E (TTM)
37.6x
Rev Growth (TTM)
+8.8%
Net Margin (TTM)
13.2%
FCF Yield (TTM)
3.6%
FCF Margin (TTM)
18.1%

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LATEST EARNINGS

Q1 2026
2 months ago
View source
Revenue
$6.02B
+2.6%
Net Income
$745.00M
+13.9%
EPS
N/A
Gross
63.3% -0.5%
Operating
15.5% +1.2%
Net
12.4% +1.2%
  • Reported net sales increased 2.6% to $6.0 billion, with organic net sales up 2.4%.
  • Reported EPS increased 14.2% to $1.93.
  • Maintained full year 2026 guidance for organic net sales growth (8.0% to 9.5%) and adjusted EPS ($14.90 to $15.10).
  • MedSurg and Neurotechnology segment sales increased 5.0% (3.6% in constant currency).

Cash Flow Health

Free Cash Flow8/8 positive
TTM$4.6B
Q1 '26
$415M-78%
Q4 '25
$1.9B+39%
FCF Margin
TTM18.1%
Q1 '266.9%-74%
Sector: 0.0%Top 10%
OCF Margin21.3%
OCF/NI1.61x
CapEx Coverage6.7x
FCF Yield3.6%
FCF Growth (2Y)+26%
Cash Conversion Cycle
267 days
DSO: 55+DIO: 212DPO: 0

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldEst.
Est.1.0%
Div Yield1.0%
+
Est. Buyback1.6%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)1.0%
FCF Payout Ratio28.8%
Free Cash Flow (TTM)$4.6B
Capital Return / FCF28.5%
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
9.5%
Stable
+0.0% YoY-0.3%
P25MedianP75
75th pctl (med: -0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
14.3%
8Q: 14.7%
Asset Turnover
0.54x
8Q: 0.53x
Leverage (1+D/E)
1.64x
D/E: 0.64x
DuPont: 12.7%9.5% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.73x
8Q:6.63x
-4.9%
Invested Cap Turn
0.71x
8Q:0.72x
-6.0%
CapEx Intensity
2.3%
8Q:2.1%
CapEx/Depreciation
0.50x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
37.6x
Volatile
8Q: 167.1x-2175%
Valuation Lenses
Earnings
37.6x
vs sector
Cash Flow
30.4x
EV/FCF vs
Growth-Adj
2.2xPEG
Expensive for growth
Quality-Adj
4.0P/E per %ROIC
ROIC: 9.5%
Shareholder Returns
Dividend
1.0%
Buyback
Total Yield
1.0%
Market Cap$125.68B
EV$138.73B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
83/100
Exceptional

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

Returns on Capital

Return on Equity (ROE)Top 25%
15.3%
8Q:
Return on Invested Capital (ROIC)Top 25%
9.5%
8Q:
Flat
vs Sector:-0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 14.3%
Asset Turnover: 0.54x

Earnings Quality

Cash Conversion

1.61x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin63.8%

Capital Efficiency

Invested Capital Turnover0.71x

Working Capital

Cash Conversion Cycle267 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
69/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
8.8%
OpInc Growth YoY
11.8%
EPS Growth YoY
16.8%
FCF 3Y CAGR
26.3%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
63.8%
Operating
19.7%
Top 25% in sector
Net
13.2%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+4.9 pts
FCF: 18.1% | Net: 13.2%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $11.76B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.64x
Balance sheet risk & solvency analysis