SYK

Stryker Corporation

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Healthcare

industry

Medical - Devices

Exchange

NYSE

County of HQ

United States

Next Earnings Date

07/30/2026

Business Summary

Stryker's business model revolves around providing innovative medical devices and equipment. Its competitive moat is built on a robust portfolio of patented products and strong relationships with healthcare providers. By focusing on quality and innovation, Stryker ensures customer loyalty and recurring revenue streams. This strategic positioning allows it to generate consistent cash flow and maintain a dominant market presence.

 


VALUATION

P/E

32.41

Market Cap ($M USD)

$108.16B

Forward P/E

12.12

PEG

0.07

PRICE TO SALES

4.28

PRICE TO BOOK

4.85

EV / EBITDA

21.79

5-Year Average P/E

Free Cash Flow Yield

4.23%

DCF Value

$348.53

Graham Number

$106.86

Price to FCF

23.66

EV to FCF

26.14

Earnings Yield

3.09%

FCF Yield

4.23%

DIVIDEND

Yield

1.22%

Annual Payout

$3.44

Payout Ratio

38.99%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$8.72

Next Year EPS Growth Estimate

$23.31

Next Year Revenue Growth Estimate

$3.79T

Return on Equity (ROE)

15.22%

FREE CASH FLOW

Operating Margin

21.34%

Debt-to-Equity

0.66

Piotroski F-Score

7

Altman Z-Score

3.77

Return on Invested Capital (ROIC)

13.49%

Current Ratio

2.11

Quick Ratio

1.25

Net Debt to EBITDA

2.07

Interest Coverage

7.74

Gross Profit margin

63.67%

FCF PER SHARE

$11.94

REVENUE PER SHARE

$66.00

Gainseekers Quantitative Analysis

Summary

Stryker Corporation’s valuation presents a compelling case of market mispricing. With a DCF value significantly above the recent pricing, the stock appears undervalued. The Forward P/E of 12.12 suggests growth potential, while the robust Altman Z-score of 3.77 indicates financial stability. However, the earnings yield of 3.09% is modest, hinting at a need for stronger earnings growth to justify its current price multiples. Overall, the financial health is solid, but the market seems to be underestimating its intrinsic value.

AI Exposure / Tech Reliance

Operating in the Medical Devices industry, Stryker is well-positioned to leverage AI and modern technology. Its focus on innovative healthcare solutions allows it to integrate advanced tech into its product offerings, enhancing patient outcomes. This adaptability ensures resilience in a rapidly evolving tech landscape.

The Bull Case

For the value-driven investor, Stryker offers a compelling narrative. The company's ROIC of 13.49% underscores its efficient capital allocation, while a Piotroski F-Score of 7 indicates strong financial health. With an operating margin of 21.34% and a respectable FCF yield, Stryker demonstrates pricing power and operational efficiency. These metrics suggest a company capable of sustaining growth and delivering shareholder value.

The Bear Case

Despite its strengths, Stryker faces structural risks. The Price/Book ratio of 4.85 and Price/Sales of 4.28 suggest a premium valuation, potentially limiting upside. Additionally, the EV to EBITDA of 21.79 indicates a high valuation relative to earnings. The stock's proximity to its 52-week high further suggests a technical overextension, raising caution for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$389.62

Institutional Ownership %

1-Year Beta

0.81

Insider Buying % (6 Mo)

Distance to 52-Week High

43.36%

Distance to 52-Week Low

0.50%

EARNINGS SURPRISE %

-12.75%

50-DAY SMA

$335.78

200-DAY SMA

$362.07

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.