# Stryker (SYK.US)

Canonical: https://gigainvestors.com/s/SYK

Analysis as of: 2026-10-16T07:32:13.449Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $293.23 per share; close as of 2026-10-15.

Estimated value: low $126.74 per share, central $157.97 per share, high $183.17 per share. Buy at or below the central value $157.97 per share. Valuation as of 2026-10-16T07:32:13.449Z; scenarios are not confidence intervals.

Expected annual return: 6.7% at the stated quote. About 6.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.23×

- FY2017: 0.22×

- FY2018: 0.23×

- FY2019: 0.23×

- FY2020: 0.21×

- FY2021: 0.22×

- FY2022: 0.20×

- FY2023: 0.21×

- FY2024: 0.16×

- FY2025: 0.19×

### moat: pass

- ROIC, median of available years: 25.7%

- ROIC, second-lowest year: 22.0%

- Typical minus recent gross margin: -0.8 pp

- Typical gross margin (annual median): 63.1%

- Recent gross margin (lower of latest and 3-year median): 64.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.4%

- ROIC including acquisitions, ten-year median: 10.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 32.9%

- FY2017: 24.9%

- FY2018: 33.3%

- FY2019: 26.5%

- FY2020: 22.0%

- FY2021: 28.8%

- FY2022: 24.6%

- FY2023: 26.7%

- FY2024: 21.8%

- FY2025: 22.8%

### economics: pass

- Owner earnings / net income, 5-yr: 1.15×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $16B

- Net income, five-year total: $14B

- Return on incremental invested capital: 86.8%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -1.0 pp

- Working capital / revenue, final three-year average: 32.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.23×

- FY2022: 1.17×

- FY2023: 1.14×

- FY2024: 1.10×

- FY2025: 1.13×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 32.9% vs 22.8%

- Per-share earnings: 3.78 to 8.25 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: 0.3%

- Market cap gain: $91B

- Cumulative retained earnings: $12B

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: 0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.3%

- Per-share value change: $4.47

- Per-share value, starting three-year median: $3.78

- Per-share value, ending three-year median: $8.25

- Buybacks concentrated in cheaper years (correlation): 0.12

- Average buyback yield: 0.2%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $20B

- Cumulative net income, 10 years: $24B

- ROIC, first three-year median: 32.9%

- ROIC, last three-year median: 22.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $4.35

- FY2017: $2.68

- FY2018: $9.34

- FY2019: $5.48

- FY2020: $4.20

- FY2021: $5.22

- FY2022: $6.17

- FY2023: $8.25

- FY2024: $7.76

- FY2025: $8.40

### accounting: pass

- Sloan accruals: -3.8%

- Receivables to sales index (DSRI): 0.91×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 4.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.55×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.11×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.3%

- FY2017: -2.4%

- FY2018: 3.5%

- FY2019: -0.4%

- FY2020: -4.9%

- FY2021: -3.7%

- FY2022: -0.7%

- FY2023: -1.4%

- FY2024: -2.9%

- FY2025: -3.8%

## Holders

- [Nicolai Tangen](https://gigainvestors.com/AKO): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 26% since Jun 2025 · "Supply chain woes send Stryker stock tumbling 7.7%" (finance.yahoo.com, Sep 2026) · sales +11.2%

Story as of 2026-10-16T09:59:39.361Z; price observation 2026-10-15.

Price needs cash profits to grow 11.5% a year for ten years

- 2025-06-25: Stryker (NYSE:SYK) Gains FDA Clearance for Innovative Total Ankle System ([finance.yahoo.com](https://finance.yahoo.com/news/stryker-nyse-syk-gains-fda-173332492.html))

- 2026-03-13: Stryker Shares Fall 2.5% as Cyberattack Disrupts Ordering and Shipping Systems ([finance.yahoo.com](https://finance.yahoo.com/news/stryker-shares-fall-2-5-144924581.html))

- 2026-04-30: Stryker misses quarterly estimates on muted demand for medical devices ([finance.yahoo.com](https://finance.yahoo.com/news/stryker-misses-quarterly-estimates-muted-214149626.html))

- 2026-05-13: Earnings Miss: Stryker Corporation Missed EPS By 15% And Analysts Are Revising Their Forecasts ([finance.yahoo.com](https://finance.yahoo.com/news/earnings-miss-stryker-corporation-missed-190808956.html))

- 2026-07-28: Stryker (SYK) Launches Mako RPS To Bring Robotic Knee Surgery To More Surgeons ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/stryker-syk-launches-mako-rps-140747142.html))

- 2026-09-08: Supply chain woes send Stryker stock tumbling 7.7% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/supply-chain-woes-send-stryker-153146624.html))

### Sales · FY2024–2025

sales +11.2%; source https://www.sec.gov/Archives/edgar/data/310764/000031076426000010/syk-20251231.htm; observed 2026-02-11.

- FY2016: $11B 

- FY2017: $12B 

- FY2018: $14B 

- FY2019: $15B 

- FY2020: $14B 

- FY2021: $17B 

- FY2022: $18B 

- FY2023: $20B 

- FY2024: $23B 

- FY2025: $25B 

### Gross margin · FY2025

gross margin 64%; source https://www.sec.gov/Archives/edgar/data/310764/000031076426000010/syk-20251231.htm; observed 2026-02-11.

- FY2016: 64.0% 

- FY2017: 63.5% 

- FY2018: 63.2% 

- FY2019: 63.0% 

- FY2020: 61.0% 

- FY2021: 62.6% 

- FY2022: 59.8% 

- FY2023: 61.0% 

- FY2024: 64.4% 

- FY2025: 64.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical devices; annual sales are USD 25.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/310764/000031076426000010/syk-20251231.htm (filed 2026-02-11); FY2025: revenue 25116000000; grossProfit 16065000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SYK.US: Stryker Corporation operates as a medical technology company in the United States and internationally. It operates through two segments, MedSurg and Neurotechnology, and Orthopaedics. The MedSurg and Neurotechnology segment offers surgical equipment, patient and caregiver safety technologies, navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, clinical communication and artificial intelligence-assisted virtual care platform technology, and minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke and venous thromboembolism; traditional brain and open skull based surgical procedures products; and orthobiologic and biosurgery products, including synthetic bone grafts and vertebral augmentation products. The Orthopaedics segment provides implants for use in total joint replacements, such as hip, knee and shoulder, ankle, and trauma and extremities surgeries; and Mako Shoulder, which expands the smart robotics suite of applications. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 61 countries. Stryker Corporation was founded in 1941 and is headquartered in Portage, Michigan.

### Why customers stay

Margins ranged from 61% to 64.4% during 2023–25; it earns 25.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: grossProfit / revenue = 61%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: grossProfit / revenue = 64.4%.

- Source: https://www.sec.gov/Archives/edgar/data/310764/000031076426000010/syk-20251231.htm (filed 2026-02-11); FY2025: grossProfit / revenue = 64%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); 10-year return on capital observations [[2016,0.3285889450672163],[2017,0.24886536598865366],[2018,0.3327972552803688],[2019,0.26478595655204545],[2020,0.21980636698532677],[2021,0.28807529418557926],[2022,0.2461143808258711],[2023,0.2674867385013759],[2024,0.21810368239081895],[2025,0.22845285947736174]]; median 0.25682566127034956. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 149 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2016: growth capex 0; upkeep 490000000; owner earnings 1703000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2017: growth capex 0; upkeep 598000000; owner earnings 1064000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2018: growth capex 0; upkeep 572000000; owner earnings 3704000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2019: growth capex 0; upkeep 649000000; owner earnings 2212000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2020: growth capex 0; upkeep 487000000; owner earnings 1924000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2021: growth capex 0; upkeep 525000000; owner earnings 2459000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2022: growth capex 0; upkeep 588000000; owner earnings 2768000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: growth capex 0; upkeep 575000000; owner earnings 3618000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: growth capex 0; upkeep 755000000; owner earnings 3288000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/310764/000031076426000010/syk-20251231.htm (filed 2026-02-11); FY2025: growth capex 0; upkeep 761000000; owner earnings 3678000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Dividend observations: [[2016,568000000],[2017,636000000],[2018,703000000],[2019,778000000],[2020,863000000],[2021,950000000],[2022,1051000000],[2023,1139000000],[2024,1219000000],[2025,1284000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/310764/000031076426000010/syk-20251231.htm (filed 2026-02-11); FY2025: cash repurchases 149000000 USD.

### Are managers owners

Insiders own 5.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SYK.US SharesStats.PercentInsiders = 5.364 percentage points; cache date 2026-10-16.

### What could break it

"MARKET RISKS" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/310764/000031076426000010/syk-20251231.htm (filed 2026-02-11); MARKET RISKS

### What the price says

The price assumes cash profits grow 11.5% yearly over ten years; actual growth was 8.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Ten-year compound average after fade. Initial solved rate 0.15329037089859365. Price 293.23; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.111315305854555 → FY2025 9.516170763260027. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $115.35 per share

- 2016-11: $113.66 per share

- 2016-12: $119.81 per share

- 2017-01: $123.53 per share

- 2017-02: $128.56 per share

- 2017-03: $131.65 per share

- 2017-04: $136.37 per share

- 2017-05: $142.96 per share

- 2017-06: $138.78 per share

- 2017-07: $147.10 per share

- 2017-08: $141.37 per share

- 2017-09: $142.02 per share

- 2017-10: $154.87 per share

- 2017-11: $156.00 per share

- 2017-12: $154.84 per share

- 2018-01: $164.38 per share

- 2018-02: $162.16 per share

- 2018-03: $160.92 per share

- 2018-04: $169.42 per share

- 2018-05: $174.02 per share

- 2018-06: $168.86 per share

- 2018-07: $163.25 per share

- 2018-08: $169.43 per share

- 2018-09: $177.68 per share

- 2018-10: $162.22 per share

- 2018-11: $175.46 per share

- 2018-12: $156.75 per share

- 2019-01: $177.57 per share

- 2019-02: $188.51 per share

- 2019-03: $197.52 per share

- 2019-04: $188.91 per share

- 2019-05: $183.24 per share

- 2019-06: $205.58 per share

- 2019-07: $209.78 per share

- 2019-08: $220.66 per share

- 2019-09: $216.30 per share

- 2019-10: $216.27 per share

- 2019-11: $204.86 per share

- 2019-12: $209.94 per share

- 2020-01: $210.70 per share

- 2020-02: $190.59 per share

- 2020-03: $166.49 per share

- 2020-04: $186.43 per share

- 2020-05: $195.73 per share

- 2020-06: $180.19 per share

- 2020-07: $193.30 per share

- 2020-08: $198.16 per share

- 2020-09: $208.37 per share

- 2020-10: $202.01 per share

- 2020-11: $233.40 per share

- 2020-12: $245.04 per share

- 2021-01: $221.01 per share

- 2021-02: $242.69 per share

- 2021-03: $243.58 per share

- 2021-04: $262.63 per share

- 2021-05: $255.27 per share

- 2021-06: $259.73 per share

- 2021-07: $270.94 per share

- 2021-08: $277.10 per share

- 2021-09: $263.72 per share

- 2021-10: $266.07 per share

- 2021-11: $236.63 per share

- 2021-12: $267.42 per share

- 2022-01: $248.05 per share

- 2022-02: $263.35 per share

- 2022-03: $267.35 per share

- 2022-04: $241.26 per share

- 2022-05: $234.50 per share

- 2022-06: $198.93 per share

- 2022-07: $214.75 per share

- 2022-08: $205.20 per share

- 2022-09: $202.54 per share

- 2022-10: $229.24 per share

- 2022-11: $233.89 per share

- 2022-12: $244.49 per share

- 2023-01: $253.81 per share

- 2023-02: $262.88 per share

- 2023-03: $285.47 per share

- 2023-04: $299.65 per share

- 2023-05: $275.58 per share

- 2023-06: $305.09 per share

- 2023-07: $283.41 per share

- 2023-08: $283.55 per share

- 2023-09: $273.27 per share

- 2023-10: $270.22 per share

- 2023-11: $296.33 per share

- 2023-12: $299.46 per share

- 2024-01: $335.48 per share

- 2024-02: $349.07 per share

- 2024-03: $357.87 per share

- 2024-04: $336.50 per share

- 2024-05: $341.09 per share

- 2024-06: $340.25 per share

- 2024-07: $327.45 per share

- 2024-08: $360.42 per share

- 2024-09: $361.26 per share

- 2024-10: $356.28 per share

- 2024-11: $392.15 per share

- 2024-12: $360.05 per share

- 2025-01: $391.29 per share

- 2025-02: $386.19 per share

- 2025-03: $372.25 per share

- 2025-04: $373.92 per share

- 2025-05: $382.64 per share

- 2025-06: $395.63 per share

- 2025-07: $392.73 per share

- 2025-08: $391.41 per share

- 2025-09: $369.67 per share

- 2025-10: $356.24 per share

- 2025-11: $371.18 per share

- 2025-12: $351.47 per share

- 2026-01: $369.56 per share

- 2026-02: $387.46 per share

- 2026-03: $328.59 per share

- 2026-04: $315.13 per share

- 2026-05: $305.09 per share

- 2026-06: $314.84 per share

- 2026-07: $325.70 per share

- 2026-08: $323.80 per share

- 2026-09: $275.39 per share

- 2026-10: $282.55 per share

## Annual estimated value (USD per share)

- FY2016: low $65.17 per share, central $80.35 per share, high $92.51 per share

- FY2017: low $52.96 per share, central $59.43 per share, high $68.04 per share

- FY2018: low $80.75 per share, central $105.12 per share, high $121.60 per share

- FY2019: low $80.45 per share, central $93.15 per share, high $106.75 per share

- FY2020: low $72.70 per share, central $87.12 per share, high $100.36 per share

- FY2021: low $82.88 per share, central $100.55 per share, high $116.11 per share

- FY2022: low $87.99 per share, central $106.63 per share, high $123.62 per share

- FY2023: low $102.58 per share, central $127.55 per share, high $147.78 per share

- FY2024: low $113.87 per share, central $142.05 per share, high $164.22 per share

- FY2025: low $124.13 per share, central $154.26 per share, high $178.57 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/310764/000031076426000010/syk-20251231.htm); period 2025-12-31, filed 2026-02-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.