📊 SYK Key Takeaways
Is Stryker Corp. (SYK) a Good Investment?
Stryker demonstrates solid fundamental strength with 11.2% revenue growth, healthy profitability margins (63.3% gross, 15.5% operating), and strong free cash flow generation of $415M. However, critically low ROE (3.2%) and ROA (1.6%) reflect significant capital efficiency challenges, while decelerating net income growth (8.5% vs 11.2% revenue growth) signals emerging operating leverage concerns that require monitoring.
Stryker shows high-quality fundamental performance with double-digit revenue growth, solid margin structure, and strong free cash flow conversion. Financial health appears sound, supported by good liquidity and manageable leverage, while profitability remains robust for a medical device company. The main watchpoints are debt load, interest coverage, and whether growth can continue without margin compression.
Stryker Corp. Key Strengths (SYK)
- Strong double-digit revenue growth (11.2% YoY) in stable medical device sector
- Solid profitability margins across gross (63.3%), operating (15.5%), and net (12.4%) levels
- Robust free cash flow generation ($415M) with 70% conversion from net income
- Healthy liquidity position with current ratio of 2.11x and quick ratio of 1.25x
- Moderate leverage (0.62x debt/equity) with adequate interest coverage (6.6x)
- Double-digit revenue growth with positive EPS and net income expansion indicates durable operating momentum
- Strong gross margin and healthy operating margin support resilient profitability
- Free cash flow generation is strong, with a 17.1% FCF margin and liquidity metrics that suggest balance sheet flexibility
SYK Stock Risks: Stryker Corp. Investment Risks
- Critically low return on equity (3.2%) and return on assets (1.6%) indicating poor capital efficiency
- Net income growth (8.5%) significantly lagging revenue growth (11.2%) suggesting cost pressures or integration challenges
- Elevated debt burden ($14.2B) relative to modest cash position ($2.9B) limiting financial flexibility
- Potential margin compression as operating leverage fails to materialize from revenue growth
- Low return on capital may be insufficient to justify shareholder investments
- Long-term debt remains meaningful and could limit flexibility if acquisition activity or rates pressure financing costs
- Interest coverage is adequate but not exceptionally high, leaving less cushion if earnings weaken
- Net margin growth trails revenue growth slightly, which may indicate some cost pressure or mix-related margin dilution
Key Metrics to Watch
- Operating margin trend and SG&A expense ratio
- Return on equity progression and capital efficiency improvements
- Free cash flow sustainability and debt reduction trajectory
- Revenue growth quality and segment profitability performance
- Operating margin and interest coverage
- Free cash flow conversion relative to net income
Stryker Corp. (SYK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.11x current ratio provides a solid financial cushion.
SYK Profit Margin, ROE & Profitability Analysis
SYK vs Healthcare Sector: How Stryker Corp. Compares
How Stryker Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Stryker Corp. Stock Overvalued? SYK Valuation Analysis 2026
Based on fundamental analysis, Stryker Corp. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Stryker Corp. Balance Sheet: SYK Debt, Cash & Liquidity
SYK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Stryker Corp.'s revenue has grown significantly by 47% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.25 reflects profitable operations.
SYK Revenue Growth, EPS Growth & YoY Performance
SYK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $5.9B | $654.0M | $1.69 |
| Q3 2025 | $5.5B | $834.0M | $2.16 |
| Q2 2025 | $5.4B | $825.0M | $2.14 |
| Q1 2025 | $5.2B | $654.0M | $1.69 |
| Q3 2024 | $4.9B | $692.0M | $1.80 |
| Q2 2024 | $5.0B | $738.0M | $1.93 |
| Q1 2024 | $4.8B | $592.0M | $1.54 |
| Q3 2023 | $4.5B | $692.0M | $1.80 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Stryker Corp. Dividends, Buybacks & Capital Allocation
SYK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Stryker Corp. (CIK: 0000310764)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SYK
What is the AI rating for SYK?
Stryker Corp. (SYK) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are SYK's key strengths?
Claude: Strong double-digit revenue growth (11.2% YoY) in stable medical device sector. Solid profitability margins across gross (63.3%), operating (15.5%), and net (12.4%) levels. ChatGPT: Double-digit revenue growth with positive EPS and net income expansion indicates durable operating momentum. Strong gross margin and healthy operating margin support resilient profitability.
What are the risks of investing in SYK?
Claude: Critically low return on equity (3.2%) and return on assets (1.6%) indicating poor capital efficiency. Net income growth (8.5%) significantly lagging revenue growth (11.2%) suggesting cost pressures or integration challenges. ChatGPT: Long-term debt remains meaningful and could limit flexibility if acquisition activity or rates pressure financing costs. Interest coverage is adequate but not exceptionally high, leaving less cushion if earnings weaken.
What is SYK's revenue and growth?
Stryker Corp. reported revenue of $6.0B.
Does SYK pay dividends?
Stryker Corp. pays dividends, with $337.0M distributed to shareholders in the trailing twelve months.
Where can I find SYK SEC filings?
Official SEC filings for Stryker Corp. (CIK: 0000310764) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SYK's EPS?
Stryker Corp. has a diluted EPS of $1.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SYK's fundamental grade?
Based on our AI fundamental analysis in June 2026, Stryker Corp. has a A grade with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is SYK stock overvalued or undervalued?
Valuation metrics for SYK: ROE of 3.2% (sector avg: 15%), net margin of 12.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is SYK's AI grade for 2026?
Our dual AI analysis gives Stryker Corp. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SYK's free cash flow?
Stryker Corp.'s operating cash flow is $581.0M, with capital expenditures of $166.0M. FCF margin is 6.9%.
How does SYK compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 12.4% (avg: 12%), ROE 3.2% (avg: 15%), current ratio 2.11 (avg: 2).