Debt is smaller than equity and it can meet short-term obligations.
Metrics · D/E ~59% · Current Ratio 2.16
💲Is the price expensive now?
On the expensive side
Even accounting for growth expectations, the price is set high.
Metrics · P/E 33.8 · P/B 5.2
💡No.1 in orthopedics at 23.8% operating margin, 16.5% ROE, D/E 0.59. But equity is mostly acquired goodwill — tangible equity is negative.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: stockanalysis (margins, ROE, P/B are TTM; operating margin on stockanalysis basis) · P/E on the July 31 close, as of 2026-07-31
Business Summary · Key Value Metrics
A medical-technology leader in orthopedic implants (hip, knee), the Mako surgical robot, and medical/surgical equipment. Grown through M&A, it earns recurring revenue from installed Mako systems and the implants they consume. TTM revenue $25.84B, operating margin 23.8%, ROE 16.5%.
Current Price
$325.70
-6.42%-$22.34· Close 2026-07-31
Analyst Consensus Target (external reference)
$383.08
Avg. of 28 external analysts · stockanalysis (28-analyst consensus, Buy · high $465 / low $315)
P/E (TTM)
33.8x
TTM · premium to peers
Operating margin
23.8%
TTM · best of ortho three
ROE
16.5%
TTM · on acquired intangibles
Net margin
14.4%
TTM
Dividend yield
1.08%
quarterly dividend
Market cap
$124.9B
as of 2026-07-31
Economic Moat · Key Business Segments
SYK's moat is switching costs in orthopedic implants plus the Mako installed base. Surgeons trained on a given implant and system rarely switch, and a hospital that adopts Mako is tied to its CT-based planning and Stryker-only implants. Over 1.5 million procedures run on 3,000-plus Mako systems. Implants and surgery are aging-driven essential demand, defensive through downturns (Source: company IR, stockanalysis).
Mako installed-base lock-in
3,000+ systems, 1.5M+ procedures. CT planning and dedicated implants tie hospitals in.
Surgeon switching costs
Once trained on an implant and system, surgeons rarely switch. Preference drives revenue.
Aging essential demand
Hip and knee implants are non-cyclical essential care. Defensive in a downturn.
M&A roll-up scale
Acquisitions built a No.1 franchise across ortho, surgical equipment, and neurotech.
10-Year Financial Trends
Revenue compounded at a 9-year CAGR of +9.3% ($11.3B in 2016 to $25.1B in 2025); operating income +9.4%. Two middle years are tax-distorted: 2017 EPS ($2.68) by a $1,043M TCJA transition tax, 2018 EPS ($9.34) by a $1,197M IP-transfer benefit (the 57.8x and 16.8x P/Es mirror it). Excluding them, operating margin runs 15-19%. A Q1 2026 cyberattack slowed revenue growth to +2.6%; Q2 recovered to $6.59B (+9.4% YoY) with operating income $1.66B (25.2% margin) and diluted EPS $3.30. Adjusted EPS was $3.69 (+17.9%) and FY guidance was raised to $14.95-$15.10 (Source: SEC EDGAR 10-K, company IR).
10-Year Growth
Revenue$25.1B · CAGR +9.2%
Operating Income$4.9B · CAGR +9.4%
EPS$8.40 · CAGR +7.6%
10-Year Valuation
P/E (year-end)41.8x · avg 41.4x
ROE15.1% · avg 16.7%
Operating Margin19.5% · avg 17.5%
📊 Annual Data Table (SYK) — expand/collapse
Year
Revenue (B$)
Op. Income (B$)
EPS ($)
P/E (x)
ROE (%)
Op. Margin (%)
2016
11.33
2.18
4.35
27.5
17.2
19.2
2017
12.44
2.3
2.68
57.8
10.4
18.5
2018
13.6
2.54
9.34
16.8
32.7
18.7
2019
14.88
2.71
5.48
38.3
17
18.2
2020
14.35
2.22
4.2
58.3
12.4
15.5
2021
17.11
2.58
5.21
51.3
14.3
15.1
2022
18.45
2.84
6.17
39.6
15
15.4
2023
20.5
3.89
8.25
36.3
18
19
2024
22.6
3.69
7.76
46.4
15.3
16.3
2025
25.12
4.89
8.4
41.8
15.1
19.5
— = no data for that year/metric (P/E omitted before EPS turned positive)
9-Year CAGR: Revenue +9.3% · Operating Income +9.4% · Net Income +7.8% · EPS +7.6%
Source: SEC EDGAR 10-K (revenue, operating income, net income, diluted EPS, equity, goodwill, intangibles, tax); fiscal year-end closes from Yahoo Finance; cross-checked against stockanalysis. P/E is year-end close ÷ diluted EPS and matches stockanalysis to the decimal for 2021-2025. 2017 was a TCJA transition tax and 2018 an IP-transfer tax benefit. Note: TTM operating margin in the tiles (23.8%) is on the stockanalysis basis; the series (15-19%) is the EDGAR basis.
Mega-Cap Value Metric Comparison
SYK's 23.8% operating margin and 16.5% ROE lead ortho peers Medtronic (20.0%, 9.8%) and Zimmer Biomet (17.5%, 6.1%), and its 33.8x P/E reflects that edge. But SYK's equity is filled with acquired goodwill and intangibles — tangible equity is negative — so ROE and P/B need care (Source: stockanalysis, company IR).
Metric
★ SYK
MDT
ZBH
P/E (TTM)
33.8
22.3
23.7
Operating margin
23.8%
20.0%
17.5%
ROE
16.5%
9.8%
6.1%
Revenue (TTM)
$25.8B
$36.4B
$8.4B
Dividend yield
1.08%
3.46%
1.07%
P/E, margins, ROE, revenue are TTM · Source: stockanalysis. SYK retrieved 2026-07-31; MDT and ZBH retrieved 2026-07-24.
Key Risk Factors (from 10-K)
●
Equity quality (goodwill impairment risk)— Grown by M&A roll-up, goodwill plus intangibles ($25.3B) exceed equity ($24.0B), leaving tangible equity around -$1.3B. The gap narrowed from roughly -$2.5B in Q1 2026 as equity built, but it is still negative. The 16.5% ROE sits on acquired intangibles, and weak acquired businesses could trigger a goodwill write-down hitting GAAP earnings.Source: SEC EDGAR 10-K
●
Rich valuation— The 33.8x GAAP P/E (on $9.65 TTM EPS) is a market premium. Against the company’s 2026 adjusted EPS guidance of $14.95-$15.10 it drops to about 22x, and much of that gap is amortization of acquired intangibles. That amortization is a real, recurring cost, so the adjusted figure should not be taken at face value.Source: stockanalysis, company IR
●
Valuation risk and the GLP-1 long game— Revenue growth, pressed to +2.6% by the Q1 2026 cyberattack, recovered to +9.4% in Q2 and guidance was raised. Even so the stock fell 6.4% on the print and sits 19% below its $401.99 52-week high — the recovery was already in the price. GLP-1 weight-loss drugs and their effect on joint-surgery demand remain a long-term watch item.Source: company IR (Q2 2026 results), industry reports
●
Tax one-off years— 2017 (TCJA transition tax) and 2018 (IP-transfer tax benefit) EPS and P/E are distorted and should be excluded when reading the series.Source: SEC EDGAR 10-K
✦ ValueCrab Dashboard PreviewSYK $325.7 -6.42% · as of 2026-07-31
Q. What are the key value metrics for Stryker (SYK)?P/E (TTM) 33.8, operating margin 23.8%, ROE 16.5%, net margin 14.4%, dividend yield 1.08%, and a 9-year revenue CAGR of +9.3% (Source: stockanalysis, SEC EDGAR, as of 2026-07-31).
Q. What does negative tangible equity mean?Book equity ($24.0B) is positive, but subtracting acquired goodwill and intangibles ($25.3B) leaves 'tangible equity' around -$1.3B. That's typical of an M&A-built company. It's fine while the business performs, but weak acquired units would require a goodwill write-down that cuts earnings.
Q. Isn't a 34x P/E expensive?It is a market premium. Against the company’s 2026 adjusted EPS guidance of $14.95-$15.10 the P/E drops to about 22x, and much of that gap is amortization of acquired intangibles — a real recurring cost, so don’t take the adjusted figure at face value. The premium rests on peer-leading 23.8% margins and 16.5% ROE.
Q. Why a crash-buy candidate?Hip and knee implants and surgery are aging-driven essential care, defensive even in a recession. Mako installed base and surgeon switching costs make revenue sticky. It's expensive at 34x now, but the idea is to accumulate an essential-care franchise on a crash. ValueCrab does not provide buy/sell judgments.