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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Stryker Corporation (XNYS:SYK) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SYK
Name:
STRYKER CORPORATION (XNYS:SYK)
Sector:
84.00M
Industry:
Medical Devices
CEO:
Mr. Kevin Lobo
Total Employees:
46,000
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -96.06% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF STRYKER CORPORATION(SYK) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND MEDICAL DEVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
203.76
One Month Price Target:
$204.94
Six Month Price Target :
$210.81
Likely Price in One Year's Time:
Ticker:
$217.86
Likely Trading Range Today Under (Normal Volatility)
$203.04
Price Upper limit ($) :
$204.6
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$194.38
This week:
$182.78
This month :
$161.81
Other Primary facts
Market Cap:
76.70B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
378.32M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
13.39%
-13.11%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$247.30
$227.37
$160.22
$180.15
Medium risk (<10%) entry points
Buy Call
Sell Call
$220.89
Buy Put:
Sell Put:
$216.63
$186.58
$190.89
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SYK
Sharpe Ratio:
0.93%
Comparison:
SYK, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -38.84% lower than the industry
& is -59.36% lower than the market/S&P 500 average
Average Returns/Yield of
SYK
Daily returns:
0.03%
Weekly returns:
0.15%
Monthly returns:
0.60%
Yearly returns:
15.36%
Comparison of returns:
Average annual returns/yield (last 3 years) is -53.51% below industry average
Classification:
SYK, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.38
Statistical test of Returns:
SYK has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.26%
Weekly Volatility:
5.05%
Monthly Volatility:
10.09%
Yearly Volatility:
34.95%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.92%
Volatility in last five trading days has been -59.32% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.60%
Weekly VaR:
-10.29%
Monthly VaR:
-20.59%
How Much Can the price of
SYK
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-18%
Worst case (decline):
-71.33%
This translates to price declining to:
$167.35
This translates to price declining to:
$58.43
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
SYK is a 45.32% riskier investment compared to the market/S&P 500 & is 24.50% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -28.13% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SYK
Beta in relation to market/S&P 500--1.03
Expected beta in 1 year's time:
0.701
Expected beta in 3 year's time:
0.991
Unlevered (debt free) Beta:
0.569
Beta in relation to Nasdaq (XNAS):
0.818
Beta in relation to all global stocks::
0.826
Beta Comparison & Analysis
Beta of competitors/peers::
0.744
Beta is 38.38% higher than peers
Average Industry Beta:
1.065
Beta is -3.28% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
7.23%
Sustainable growth rate is -44.48% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.031
Alpha is -162.37% below industry average alpha yield
Alpha is -195% below the market average
Analysis of Cost of Capital of
SYK
Equity cost of capital:
0.102
Equity cost of capital is -2.29% below industry mean WACC
Unlevered (without debt) cost of capital:
5.64%
Before-tax cost of debt:
-
After-tax cost of debt:
-
Overall debt rating:
-
Weighted average cost of capital (WACC):
-
-
Key Per-Share Metrics & Analysis
Revenue per share:
$46.07
Revenue growth rate per share of (3Y):
5.12
Annual revenue growth rate is -93.21% below industry average
EPS:
$5.27
Expected Annual growth rate of EPS (3Y):
-2.14%
Expected future EPS growth rate is -118.48% lower than the Medical Devices industry
Free cash flow (FCF) per share:
$6.34
Balance sheet equity growth per share: 34.63%
Equity growth rate per share is -26510.54% lower than the industry
Debt per share
$36.70
EBITDA per share
$8.61
Valuation Analysis Today of
SYK
P/E Ratio:
37.48
P/E Ratio of Competitors/Peers:
30.82
P/E ratio is 21.62% higher than main peers & is -84.61% lower than the industry
Stock price/value with industry average P/E ratio: $1,283.48
SYK is -84.12% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $46.45
Present value of the expected future dividends only: $33.71
P/S (Price to Sales ratio):
4.42
Price to sales ratio is -52.49% below the industry mean
P/B (Price to book value ratio):
5.12
Price to free cash flow: 32.12
Price to free cash flow ratio is -48.41% lower than the industry
Net income growth rate (3Y):
-44.09%
Net income growth rate is -145.39% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 13.00%
Dividend yeild: 1.33%
Previous Dividend: $0.70
Previous adjusted dividend: $0.70
Previous Dividend: $2.72
Expected next dividend best case: $0.74
Expected next dividend worst case: $0.65
Average dividend payment (long-term): $0.63
Average dividend increase/decrease (growth rate) % per period: 1.99%
Expected next dividend payment date: 27/10/2022
Expected next dividend record date: 28/09/2022
-
Previous dividend payment date: 29/07/2022
Previous dividend record date: 30/06/2022
-
Dividend History:
2022-06-29--$0.70
2021-12-30--$0.70
2021-06-29--$0.63
2022-03-30--$0.70
2021-09-29--$0.63
2021-03-30--$0.63
Dividend growth rate is 178.12% higher than the average industry
In-depth Debt & Leverage Analysis
Debt to equity ratio:
92.28%
Net debt to equity ratio:
82.59%
Debt to assets ratio:
38.42%
Net debt to assets ratio:
34.39%
Debt-to-asset ratio is -0.83% below industry average
Ability to repay debt:
Interest coverage ratio:
-
-
Looking forward:
Debt growth rate:
-10.81%
Annual debt growth is -104% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.775
Statistical significance of correlation:
SYK has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.468
Stock price is 65.65% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.468
Correlation of price movement with Nasdaq (^IXIC):
0.015
Covariance of price movement with the market:
0.019
Kurtosis
8.209
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.219
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
SYK
Gross Profit Margin Ratio:
257%
Operating Profit Margin Ratio:
14.76%
Operating profit margin is -186.43% lower than the industry
Net Profit Margin Ratio:
257%
Effective Tax Rate:
12.39%
Effective tax rate is -77.44% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
13.39%
Return on equity (ROE) is -236.59% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
5.58%
Return on assets (ROA) is -265.40% lower than the industry
Financial Leverage:
1.6x
Current Ratio:
1.98
Current ratio is -69.38% below industry average
Cash Conversion Cycle (days):
45.9
Cash conversion cycle is -17.66% below industry average
The remaining useful life of property plant & equipment is: 3.1 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
378.9K
Each employee generates 1% more revenue than industry average revenue per employee
EBITDA generated per employee:
70.8K
Each employee generates 1031% more EBITDA than industry average revenue per employee
Profit generated per employee:
43.8K
Each employee generates -247% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
1.8K
Each employee generates -113% less free cash flow than industry average revenue per employee
Assets/Capital per employee
595.9K
Each employee generates -113% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 25.51%
Growth rate in R&D investment/expenditure is -19553.02% lower than the industry
Competitors/Peer firms of
SYK
ZOETIS INC. (XNYS:ZTS)
ELEVANCE HEALTH, INC. (XNYS:ELV)
GSK PLC (XNYS:GSK)
CIGNA CORPORATION (XNYS:CI)
EDWARDS LIFESCIENCES CORPORATION (XNYS:EW)
BECTON, DICKINSON AND COMPANY (XNYS:BDX)
CVS HEALTH CORPORATION (XNYS:CVS)
BOSTON SCIENTIFIC CORPORATION (XNYS:BSX)
BRISTOL-MYERS SQUIBB COMPANY (XNYS:BMY)
Current Analyst Ratings
Strong buy�46%
Buy�25%
Hold�33%
Sell�4%
Strong sell�4%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
17.43B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
6.24B
11.19B
1.36B
-
6.56B
-
588.00M
8.51B
-
-
956.00M
3.26B
2.57B
2.02B
2.30B
285.00M
2.02B
Statement of Cash Flow
Date:
Period:
242.00M
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
- 362000.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
203.00M
Investments in PP&E:
- 119000.00K
Net Acquisitions:
- 2563000.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.46B
72.00M
1.53B
2.99B
3.53B
679.00M
8.73B
2.79B
-
-
-
1.60B
2.36B
27.41B
-
36.14B
-
-
-
-
4.41B
4.41B
13.89B
2.80B
16.68B
-
21.09B
-
-
- 479000.0K
-
March 31, 2022 at 6:00:00 AM
14.75B
15.05B
36.14B
-
13.89B
12.4B
-
-
- 2682000.00K
-
-
-
- 262000.00K
1.26B
993.00M
-
993.00M
-
-
203.00M
- 119000.00K
84.00M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
SYK
2023
2024
2025
2026
2027
$224.22
$239.74
$256.33
$274.07
$293.04