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1. Company Snapshot

1.a. Company Description

Stryker Corporation operates as a medical technology company.The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine.The Orthopaedics and Spine segment provides implants for use in hip and knee joint replacements, and trauma and extremities surgeries.


This segment also offers spinal implant products comprising cervical, thoracolumbar, and interbody systems that are used in spinal injury, deformity, and degenerative therapies.The MedSurg and Neurotechnology segment offers surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, and other medical device products that are used in various medical specialties.This segment also provides neurotechnology products, which include products used for minimally invasive endovascular techniques; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke; and craniomaxillofacial implant products, including cranial, maxillofacial, and chest wall devices, as well as dural substitutes and sealants.


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 75 countries.Stryker Corporation was founded in 1941 and is headquartered in Kalamazoo, Michigan.

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1.b. Last Insights on SYK

Stryker Corporation's recent performance was negatively impacted by valuation concerns, despite strong Q3 2025 results. The company's robust organic growth across MedSurg & Neurotechnology and Orthopaedics segments, double-digit organic sales and EPS growth, and successful product launches were overshadowed by a significant valuation premium to sector peers, with a PEG ratio above 2. Additionally, some institutional investors, such as Bank Pictet & Cie Europe AG and BLI Banque de Luxembourg Investments, reduced their holdings in the company. A "Moderate Buy" consensus rating from analysts (Marketbeat.com) suggests a cautiously optimistic outlook.

1.c. Company Highlights

2. Stryker's 2025 Earnings: A Strong Year with Robust Growth Prospects

Stryker's financial performance in 2025 was outstanding, with organic sales growth of 11% in Q4 and 10.3% for the full year, surpassing $25 billion in sales. The company's adjusted earnings per share (EPS) for Q4 was $4.47, beating estimates of $4.4, and $13.63 for the full year, up 11.8% from 2024. The adjusted operating margin expanded to 30.2% of sales in Q4, demonstrating the company's ability to drive profitability. For 2026, Stryker expects organic net sales growth to be in the range of 8% to 9.5% and adjusted net EPS to be in the range of $14.90 to $15.10.

Publication Date: Feb -02

📋 Highlights
  • Record Sales Growth: Stryker achieved $25.4 billion in full-year sales (10.3% organic growth) and $5.9 billion in Q4 sales (11% organic growth), surpassing $25 billion for the first time.
  • Earnings & Cash Flow Strength: Adjusted EPS rose 11.8% to $13.63 for 2025, with $5 billion in operating cash flow (up $820 million) and 81% free cash flow conversion to adjusted net earnings.
  • 2026 Guidance: Organic sales growth projected at 8–9.5%, with adjusted EPS of $14.90–$15.10, factoring a $400 million tariff impact and 15–16% effective tax rate.
  • Mako & Innovation Leadership: Mako 4 adoption drove robotic-assisted surgery growth, with 66% of knees and 33% of hips using the technology, alongside 18 R&D products in development.
  • Margin Expansion: Adjusted operating margin reached 30.2% in Q4, reflecting 100 bps expansion for two consecutive years despite tariff pressures and foreign exchange headwinds.

Segment Performance

The company's neurocranial endoscopy instruments and trauma and extremities businesses delivered double-digit organic sales growth. U.S. organic sales growth was 11.2%, and international organic sales growth was 7.5%. The MedSurg business is growing rapidly, driven by high market shares, constant product upgrades, and strategic acquisitions. Mako, a robotic system for orthopedic procedures, is seeing increased adoption, with two-thirds of knees and one-third of hips utilizing the technology.

Guidance and Outlook

Stryker guides for a modestly positive impact from price and a slightly favorable impact on both sales and adjusted EPS if foreign exchange rates hold near year-to-date levels. The company expects a $400 million tariff impact in 2026, with an incremental $200 million realized in the first half of the year. Stryker's management team is bullish on its prospects, with no change in strategy despite changes in the competitive landscape.

Valuation

With a P/E Ratio of 43.55 and an EV/EBITDA of 26.74, Stryker's valuation suggests that the market has high expectations for the company's future growth. The company's ROE of 15.04% and ROIC of 7.38% indicate a strong ability to generate returns on equity and invested capital. Analysts estimate next year's revenue growth at 8.5%, which is within the company's guidance range.

Innovation and M&A

Innovation remains a key focus for Stryker, with several new launches, including Mako RPS, a handheld robot, and Vocera sync badge. The company has a strong R&D pipeline, with 18 products in development. Stryker continues to build around its existing businesses, including its PV and vascular businesses, and may look at opportunities in areas like calcium management and other ancillary areas.

Conclusion on Financial Health

Stryker's cash from operations was $5 billion year-to-date, an increase of $820 million from 2024, and delivered free cash flow as a percentage of adjusted net earnings of 81% compared to 75% last year. The company expects to maintain its free cash flow conversion range of 70-80% and targets investments in growth initiatives while improving productivity.

3. NewsRoom

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Johnson Investment Counsel Inc. Boosts Stake in Stryker Corporation $SYK

Feb -10

Source: defenseworld.net

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Stryker Corporation $SYK Shares Bought by Wesbanco Bank Inc.

Feb -10

Source: defenseworld.net

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Market Today: Novo sues Hims; Highlander EV; Alphabet bond

Feb -09

Source: gurufocus.com

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Stryker introduces Mako Handheld Robotics with the limited market release of Mako RPS

Feb -09

Source: prnewswire.com

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First Look: Amazon's $200B Capex, Coinbase's SB Ad, Kroger CEO

Feb -09

Source: gurufocus.com

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Stryker Corporation $SYK Shares Sold by Candriam S.C.A.

Feb -09

Source: defenseworld.net

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Stryker Corporation $SYK Position Increased by Smartleaf Asset Management LLC

Feb -09

Source: defenseworld.net

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Stryker Corporation $SYK Shares Sold by Twin Capital Management Inc.

Feb -07

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.90%)

6. Segments

Medsurg and Neurotechnology

Expected Growth: 8.5%

Stryker's Medsurg and Neurotechnology segment growth of 8.5% is driven by increasing demand for minimally invasive surgical procedures, expanding applications of robotic-assisted surgery, and rising adoption of advanced neurosurgical technologies. Strong sales of robotic systems, navigation systems, and implants also contribute to this growth.

Orthopaedics

Expected Growth: 9.5%

Stryker's Orthopaedics segment growth of 9.5% is driven by increasing demand for joint replacement procedures, expanding portfolio of innovative products, and strategic acquisitions. The segment's strong performance is also attributed to the company's focus on robotics and digital solutions, which enhance surgical efficiency and patient outcomes.

7. Detailed Products

Orthopaedic Implants

Stryker's Orthopaedic Implants segment offers a range of products, including hip, knee, and trauma implants, as well as bone cement and accessories.

MedSurg Equipment

Stryker's MedSurg Equipment segment provides a variety of medical devices, including hospital beds, stretchers, and surgical navigation systems.

Neurotechnology and Spine

Stryker's Neurotechnology and Spine segment offers products for neurosurgery, orthobiologics, and spinal implant systems.

Instruments

Stryker's Instruments segment provides a range of surgical instruments, including electrosurgical, endoscopic, and orthopaedic instruments.

8. Stryker Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Stryker Corporation operates in the medical technology industry, where substitutes are limited. However, the company faces competition from alternative medical procedures and treatments, which could potentially substitute its products.

Bargaining Power Of Customers

Stryker Corporation sells its products to hospitals, clinics, and other healthcare providers, which have limited bargaining power due to the specialized nature of the company's products.

Bargaining Power Of Suppliers

Stryker Corporation relies on a diverse range of suppliers for raw materials, components, and services. While some suppliers may have bargaining power, the company's diversified supply chain mitigates this risk.

Threat Of New Entrants

The medical technology industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The medical technology industry is highly competitive, with several established players competing for market share. Stryker Corporation faces intense rivalry from companies such as Johnson & Johnson, Medtronic, and Zimmer Biomet.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.14%
Debt Cost 3.95%
Equity Weight 58.86%
Equity Cost 8.51%
WACC 6.63%
Leverage 69.89%

11. Quality Control: Stryker Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
J&J

A-Score: 6.9/10

Value: 3.1

Growth: 4.0

Quality: 8.8

Yield: 6.0

Momentum: 9.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Abbott

A-Score: 6.3/10

Value: 2.8

Growth: 5.9

Quality: 7.8

Yield: 4.0

Momentum: 7.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Stryker

A-Score: 5.3/10

Value: 1.4

Growth: 6.4

Quality: 6.6

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Boston Scientific

A-Score: 5.2/10

Value: 1.2

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Regeneron Pharmaceuticals

A-Score: 4.9/10

Value: 4.0

Growth: 6.4

Quality: 8.8

Yield: 0.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
DexCom

A-Score: 4.3/10

Value: 1.5

Growth: 9.1

Quality: 6.8

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

361.06$

Current Price

361.06$

Potential

-0.00%

Expected Cash-Flows