Stryker Current Valuation vs. Return On Equity

SYK Stock  USD 364.60  7.46  2.09%   
Considering Stryker's profitability and operating efficiency indicators, Stryker's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Stryker's ability to earn profits and add value for shareholders. At this time, Stryker's Days Sales Outstanding is quite stable compared to the past year. Days Of Sales Outstanding is expected to rise to 72.49 this year, although the value of Price To Sales Ratio will most likely fall to 2.98. At this time, Stryker's Change To Netincome is quite stable compared to the past year. Net Income Per Share is expected to rise to 8.75 this year, although the value of Net Income From Continuing Ops will most likely fall to about 1.9 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.50.6389
Significantly Down
Pretty Stable
Net Profit Margin0.0960.1544
Way Down
Very volatile
Operating Profit Margin0.140.1897
Way Down
Pretty Stable
Pretax Profit Margin0.130.1792
Way Down
Slightly volatile
Return On Assets0.110.0793
Significantly Up
Pretty Stable
Return On Equity0.190.1702
Moderately Up
Pretty Stable
For Stryker profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Stryker to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Stryker utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Stryker's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Stryker over time as well as its relative position and ranking within its peers.
  

Stryker's Revenue Breakdown by Earning Segment

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For more information on how to buy Stryker Stock please use our How to buy in Stryker Stock guide.
Is Health Care Equipment & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Stryker. If investors know Stryker will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Stryker listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.2
Dividend Share
3.2
Earnings Share
9.33
Revenue Per Share
57.728
Quarterly Revenue Growth
0.119
The market value of Stryker is measured differently than its book value, which is the value of Stryker that is recorded on the company's balance sheet. Investors also form their own opinion of Stryker's value that differs from its market value or its book value, called intrinsic value, which is Stryker's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Stryker's market value can be influenced by many factors that don't directly affect Stryker's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Stryker's value and its price as these two are different measures arrived at by different means. Investors typically determine if Stryker is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stryker's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Stryker Return On Equity vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Stryker's current stock value. Our valuation model uses many indicators to compare Stryker value to that of its competitors to determine the firm's financial worth.
Stryker is rated second in current valuation category among its peers. It is rated third in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Stryker is about  793,806,416,720 . At this time, Stryker's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Stryker by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Stryker Current Valuation vs. Competition

Stryker is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is at this time estimated at about 755.4 Billion. Stryker retains roughly 149.79 Billion in current valuation claiming about 20% of equities under Health Care industry.

Stryker Return On Equity vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Stryker

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
149.79 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Stryker

Return On Equity

 = 

Net Income

Total Equity

 = 
0.19
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Stryker Return On Equity Comparison

Stryker is currently under evaluation in return on equity category among its peers.

Stryker Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Stryker, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Stryker will eventually generate negative long term returns. The profitability progress is the general direction of Stryker's change in net profit over the period of time. It can combine multiple indicators of Stryker, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-416 M-395.2 M
Operating Income3.9 B4.1 B
Income Before Tax3.7 B3.9 B
Total Other Income Expense Net-215 M-204.2 M
Net Income3.2 B3.3 B
Income Tax Expense508 M533.4 M
Net Income Applicable To Common Shares2.7 B2.8 B
Net Income From Continuing Ops3.2 B1.9 B
Non Operating Income Net Other-142.2 M-149.3 M
Interest Income279.4 M192.8 M
Change To Netincome522.1 M548.2 M
Net Income Per Share 8.34  8.75 
Income Quality 1.17  2.00 
Net Income Per E B T 0.86  0.57 

Stryker Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Stryker. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Stryker position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Stryker's important profitability drivers and their relationship over time.

Use Stryker in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Stryker position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Stryker will appreciate offsetting losses from the drop in the long position's value.

Stryker Pair Trading

Stryker Pair Trading Analysis

The ability to find closely correlated positions to Stryker could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Stryker when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Stryker - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Stryker to buy it.
The correlation of Stryker is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Stryker moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Stryker moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Stryker can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Stryker position

In addition to having Stryker in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Measuring and Control Equipment Thematic Idea Now

Measuring and Control Equipment
Measuring and Control Equipment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Measuring and Control Equipment theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Measuring and Control Equipment Theme or any other thematic opportunities.
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When determining whether Stryker is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Stryker Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Stryker Stock. Highlighted below are key reports to facilitate an investment decision about Stryker Stock:
Check out World Market Map.
For more information on how to buy Stryker Stock please use our How to buy in Stryker Stock guide.
You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Stryker's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Stryker at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Stryker's income statement, its balance sheet, and the statement of cash flows.
Potential Stryker investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Stryker investors may work on each financial statement separately, they are all related. The changes in Stryker's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Stryker's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.