STRYKER CORP (SYK) Stock Analysis

Analysis from 10-Q filed 2025-10-31. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 9.5%. FCF margin 18.1%. D/E 0.6x. Source: 10-Q filed 2025-10-31.

Metric	Value	Context
ROIC	9.5%	Near cost of capital
FCF Margin	18.1%	Strong cash generation
Debt/Equity	0.6x	Moderate leverage

ROIC 9.5% — Top 50% of sector peers. FCF margin 18.1% — Top 5%.

Explore STRYKER CORP: Earnings History | Filings | ROIC Analysis

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 9.5% ROIC, Top 50% in Healthcare

ROIC TTM 9.5%, sector median -2.5%, Top 50%. DuPont: NOPAT margin 14.3% × asset turnover 0.5x. Gross margin 63.8%. Operating margin 19.7%. Source: 10-Q filed 2025-10-31.

Metric	SYK	Rating	Context
Return on Invested Capital (ROIC)	9.5%	Adequate	Above sector median of -2.5%
Return on Equity (ROE)	15.3%	Good	Efficient use of shareholder equity
Gross Margin	63.8%	Excellent	Strong pricing power
Operating Margin	19.7%	Good	Efficient operations

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Cash Flow: STRYKER CORP generates $4.6B FCF at 18.1% margin, positive NaN/8 quarters

FCF TTM $4.6B. FCF margin 18.1%, Top 5%. OCF/Net income 1.6x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-31.

Metric	SYK	Rating	Context
Free Cash Flow Margin	18.1%	Good	Excellent cash conversion
Free Cash Flow (TTM)	$4.6B	Good	Positive cash generation
OCF/Net Income	1.6x	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

Debt/Equity 0.6x. Total debt $14.7B, cash & investments $3.0B. Source: 10-Q filed 2025-10-31.

Metric	SYK	Rating	Context
Debt to Equity	0.6x	Good	Moderate leverage
Net Cash Position	$-11.8B	Warning	Net debt position

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Valuation: STRYKER CORP trades at 37.6x earnings

P/E 37.6x. EV/Sales 5.5x. FCF yield 3.6%. Dividend yield 1.0%. Source: 10-Q filed 2025-10-31.

Metric	SYK	Rating	Context
P/E Ratio	37.6x	Adequate	Premium valuation
EV/Sales	5.5x	Adequate	Growth premium priced in
FCF Yield	3.6%	Adequate	Lower cash yield
Dividend Yield	1.0%	Adequate	Growth focus over income

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Capital Allocation: STRYKER CORP returns 1.0% shareholder yield

Total shareholder yield 1.0% (div 1.0%). Capital returned $1.3B TTM. Source: 10-Q filed 2025-10-31.

Metric	SYK	Rating	Context
Total Shareholder Yield	1.0%	Adequate	Dividend + buyback yield combined
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)	9.5%	Top 50%	-
Free Cash Flow Margin	18.1%	Top 5%	-
Gross Margin	63.8%	Bottom 50%	1.0x below
Operating Margin	19.7%	Top 25%	8.6x above
Return on Equity (ROE)	15.3%	Top 25%	-
P/E Ratio	37.6x	N/A	-

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Financial Scorecard

Metric	SYK	Rating	Sector Context
Return on Invested Capital (ROIC)	9.5%	Adequate	Top 50% of sector (median: -2.5%)
Free Cash Flow Margin	18.1%	Good	Top 5% of sector (median: 0.0%)
Gross Margin	63.8%	Excellent	Bottom 50% of sector (median: 64.7%)
Debt to Equity Ratio	64.1%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	37.6x	Adequate	High expectations priced in
Free Cash Flow Yield	3.6%	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 9.5%. Sector median -2.5%. Source: 10-Q filed 2025-10-31.

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

STRYKER CORP (SYK) has a free cash flow margin of 18.1%, generating $4.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-31.

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 37.6x, which is above the sector median of N/A. EV/Sales 5.5x. FCF yield 3.6%. Source: 10-Q filed 2025-10-31.

Q: Does STRYKER CORP pay a dividend?

STRYKER CORP (SYK) currently pays a dividend yield of 1.0%. Total shareholder yield (dividend + buybacks) 1.0%. Source: 10-Q filed 2025-10-31.

Q: How much debt does STRYKER CORP have?

STRYKER CORP (SYK) has a debt-to-equity ratio of 0.6x with total debt of $14.7 billion. Net debt $11.8 billion. Source: 10-Q filed 2025-10-31.

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

STRYKER CORP (SYK) grew revenue by 8.8% year-over-year. EPS +16.8% YoY. Source: 10-Q filed 2025-10-31.

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

Compared to other companies in Healthcare, STRYKER CORP (SYK) shows: ROIC 9.5%, sector median -2.5% (Top 50%). FCF margin 18.1%, sector median 0.0% (Top 5%). Gross margin 63.8%, 0.9pp below 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 2025-10-31.

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Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q1 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.