Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin20.1%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin12.9%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt4.9 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$7.9B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$7.0B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
B
Free Cash Flow$4.3B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income23.4%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$5.2B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit64.0%
Operating Margin20.1%
Net Margin12.9%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
64.0%▲
63.9%▲
63.7%▲
62.8%•
N/A
Operating Margin %
20.1%▼
20.7%▲
19.1%▲
16.9%•
N/A
Net Income %
12.9%▼
13.2%▼
15.4%▲
12.8%•
N/A
Diluted EPS
8.40▲
7.76▼
8.25▲
6.17•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$47.8B
$43.0B
$39.9B
$36.9B
N/A
Total Debt
$15.9B▲
$13.6B▲
$13.0B▼
$13.0B•
N/A
Working Capital
$7.0B▼
$7.2B▲
$4.6B▲
$4.0B•
N/A
Years to Pay Debt
4.89
4.54
4.11
5.53
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$4.3B▲
$3.5B▲
$3.1B▲
$2.0B•
N/A
Owner Earnings
$5.2B
$4.8B
$4.8B
$3.9B
N/A
CapEx % of Net Income
23.4%
25.2%
18.2%
24.9%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-47,754
-139,611
-4,968
-32,670
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
6,484,000
5,928,000
5,100,000
4,379,000
Total Unusual Items
-170,000
-977,000
-36,000
-270,000
Total Unusual Items Excluding Goodwill
-170,000
-977,000
-36,000
-270,000
Net Income From Continuing Operation Net Minority Interest
3,246,000
2,993,000
3,165,000
2,358,000
Reconciled Depreciation
1,193,000
1,050,000
1,028,000
998,000
Reconciled Cost Of Revenue
8,590,000
7,728,000
7,047,000
6,500,000
EBITDA
6,314,000
4,951,000
5,064,000
4,109,000
EBIT
5,121,000
3,901,000
4,036,000
3,111,000
Net Interest Income
-607,000
-409,000
-363,000
Interest Expense
607,000
409,000
363,000
Normalized Income
3,368,246
3,830,389
3,196,032
2,595,330
Net Income From Continuing And Discontinued Operation
3,246,000
2,993,000
3,165,000
2,358,000
Total Expenses
20,057,000
17,929,000
16,574,000
15,338,000
Total Operating Income As Reported
4,889,000
3,689,000
3,888,000
2,841,000
Diluted Average Shares
386,500
385,600
383,700
382,200
Basic Average Shares
382,200
381,000
379,600
378,200
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
3,246,000
2,993,000
3,165,000
2,358,000
Net Income Common Stockholders
3,246,000
2,993,000
3,165,000
2,358,000
Net Income
3,246,000
2,993,000
3,165,000
2,358,000
Net Income Including Noncontrolling Interests
3,246,000
2,993,000
3,165,000
2,358,000
Net Income Continuous Operations
3,246,000
2,993,000
3,165,000
2,358,000
Tax Provision
1,268,000
499,000
508,000
325,000
Pretax Income
4,514,000
3,492,000
3,673,000
2,683,000
Other Income Expense
62,000
-765,000
112,000
-428,000
Other Non Operating Income Expenses
232,000
212,000
148,000
-158,000
Special Income Charges
-170,000
-977,000
-36,000
-270,000
Other Special Charges
18,000
-15,000
103,000
Impairment Of Capital Assets
170,000
977,000
36,000
270,000
Net Non Operating Interest Income Expense
-607,000
-409,000
-363,000
Interest Expense Non Operating
607,000
409,000
363,000
Operating Income
5,059,000
4,666,000
3,924,000
3,111,000
Operating Expense
11,006,000
9,774,000
9,134,000
8,467,000
Depreciation Amortization Depletion Income Statement
732,000
623,000
635,000
627,000
Depreciation And Amortization In Income Statement
732,000
623,000
635,000
627,000
Amortization
732,000
623,000
635,000
627,000
Amortization Of Intangibles Income Statement
732,000
623,000
635,000
627,000
Research And Development
1,623,000
1,466,000
1,388,000
1,454,000
Selling General And Administration
8,651,000
7,685,000
7,111,000
6,386,000
Gross Profit
16,065,000
14,440,000
13,058,000
11,578,000
Cost Of Revenue
9,051,000
8,155,000
7,440,000
6,871,000
Total Revenue
25,116,000
22,595,000
20,498,000
18,449,000
Operating Revenue
25,116,000
22,595,000
20,498,000
18,449,000
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
382,500
381,400
380,100
378,700
Share Issued
382,500
381,400
380,100
378,700
Net Debt
11,848,000
9,945,000
10,024,000
11,204,000
Total Debt
15,859,000
13,597,000
12,995,000
13,048,000
Tangible Book Value
-2,552,000
384,000
-1,243,000
-3,149,000
Invested Capital
38,279,000
34,231,000
31,588,000
29,664,000
Working Capital
6,961,000
7,231,000
4,597,000
3,972,000
Net Tangible Assets
-2,552,000
384,000
-1,243,000
-3,149,000
Common Stock Equity
22,420,000
20,634,000
18,593,000
16,616,000
Total Capitalization
37,279,000
32,822,000
29,494,000
28,473,000
Total Equity Gross Minority Interest
22,420,000
20,634,000
18,593,000
16,616,000
Stockholders Equity
22,420,000
20,634,000
18,593,000
16,616,000
Gains Losses Not Affecting Retained Earnings
-687,000
-293,000
-416,000
-221,000
Other Equity Adjustments
-687,000
-293,000
-416,000
-221,000
Retained Earnings
20,472,000
18,528,000
16,771,000
14,765,000
Additional Paid In Capital
2,597,000
2,361,000
2,200,000
2,034,000
Capital Stock
38,000
38,000
38,000
38,000
Common Stock
38,000
38,000
38,000
38,000
Total Liabilities Net Minority Interest
25,424,000
22,337,000
21,319,000
20,268,000
Total Non Current Liabilities Net Minority Interest
17,630,000
14,721,000
13,398,000
13,965,000
Other Non Current Liabilities
2,369,000
2,184,000
1,930,000
1,467,000
Tradeand Other Payables Non Current
402,000
349,000
567,000
641,000
Long Term Debt And Capital Lease Obligation
14,859,000
12,188,000
10,901,000
11,857,000
Long Term Debt
14,859,000
12,188,000
10,901,000
11,857,000
Current Liabilities
7,794,000
7,616,000
7,921,000
6,303,000
Current Debt And Capital Lease Obligation
1,000,000
1,409,000
2,094,000
1,191,000
Current Debt
1,000,000
1,409,000
2,094,000
1,191,000
Other Current Borrowings
1,000,000
1,409,000
2,094,000
Pensionand Other Post Retirement Benefit Plans Current
1,595,000
1,403,000
1,478,000
1,149,000
Payables And Accrued Expenses
5,199,000
4,804,000
4,349,000
3,963,000
Current Accrued Expenses
2,645,000
2,266,000
2,137,000
1,974,000
Payables
2,554,000
2,538,000
2,212,000
1,989,000
Dividends Payable
337,000
320,000
304,000
284,000
Total Tax Payable
418,000
539,000
391,000
292,000
Income Tax Payable
418,000
539,000
391,000
292,000
Accounts Payable
1,799,000
1,679,000
1,517,000
1,413,000
Total Assets
47,844,000
42,971,000
39,912,000
36,884,000
Total Non Current Assets
33,089,000
28,124,000
27,394,000
26,609,000
Other Non Current Assets
3,143,000
2,684,000
2,673,000
2,464,000
Non Current Deferred Assets
1,098,000
1,742,000
1,670,000
1,410,000
Non Current Deferred Taxes Assets
1,098,000
1,742,000
1,670,000
1,410,000
Goodwill And Other Intangible Assets
24,972,000
20,250,000
19,836,000
19,765,000
Other Intangible Assets
5,681,000
4,395,000
4,593,000
4,885,000
Goodwill
19,291,000
15,855,000
15,243,000
14,880,000
Net PPE
3,876,000
3,448,000
3,215,000
2,970,000
Accumulated Depreciation
-3,661,000
-3,235,000
-3,129,000
-2,835,000
Gross PPE
7,537,000
6,683,000
6,344,000
5,805,000
Machinery Furniture Equipment
5,744,000
5,056,000
4,652,000
4,066,000
Properties
1,793,000
1,627,000
1,692,000
1,739,000
Current Assets
14,755,000
14,847,000
12,518,000
10,275,000
Other Current Assets
1,306,000
1,593,000
857,000
787,000
Prepaid Assets
787,000
662,000
Inventory
5,310,000
4,774,000
4,843,000
3,995,000
Finished Goods
3,546,000
3,291,000
3,271,000
2,641,000
Work In Process
415,000
336,000
330,000
348,000
Raw Materials
1,349,000
1,147,000
1,242,000
1,006,000
Receivables
4,039,000
3,987,000
3,765,000
3,565,000
Accounts Receivable
4,039,000
3,987,000
3,765,000
3,565,000
Allowance For Doubtful Accounts Receivable
-216,000
-213,000
-182,000
-154,000
Gross Accounts Receivable
4,255,000
4,200,000
3,947,000
3,719,000
Cash Cash Equivalents And Short Term Investments
4,100,000
4,493,000
3,053,000
1,928,000
Other Short Term Investments
89,000
841,000
82,000
84,000
Cash And Cash Equivalents
4,011,000
3,652,000
2,971,000
1,844,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
4,283,000
3,487,000
3,136,000
2,036,000
Repayment Of Debt
-1,400,000
-2,039,000
-2,058,000
-653,000
Issuance Of Debt
2,979,000
3,011,000
1,241,000
1,500,000
Capital Expenditure
-761,000
-755,000
-575,000
-588,000
Interest Paid Supplemental Data
582,000
396,000
356,000
324,000
Income Tax Paid Supplemental Data
1,002,000
989,000
693,000
505,000
End Cash Position
4,011,000
3,652,000
2,971,000
1,844,000
Beginning Cash Position
3,652,000
2,971,000
1,844,000
2,944,000
Effect Of Exchange Rate Changes
68,000
-36,000
-28,000
-51,000
Changes In Cash
291,000
717,000
1,155,000
-1,049,000
Financing Cash Flow
113,000
-525,000
-1,594,000
-749,000
Cash Flow From Continuing Financing Activities
113,000
-525,000
-1,594,000
-749,000
Net Other Financing Charges
-182,000
-246,000
-178,000
-170,000
Cash Dividends Paid
-1,284,000
-1,219,000
-1,139,000
-1,051,000
Common Stock Dividend Paid
-1,284,000
-1,219,000
-1,139,000
-1,051,000
Net Issuance Payments Of Debt
1,579,000
940,000
-277,000
472,000
Net Short Term Debt Issuance
0
-32,000
540,000
-375,000
Net Long Term Debt Issuance
1,579,000
972,000
-817,000
847,000
Long Term Debt Payments
-1,400,000
-2,039,000
-2,058,000
-653,000
Long Term Debt Issuance
2,979,000
3,011,000
1,241,000
1,500,000
Investing Cash Flow
-4,866,000
-3,000,000
-962,000
-2,924,000
Cash Flow From Continuing Investing Activities
-4,866,000
-3,000,000
-962,000
-2,924,000
Net Other Investing Changes
-60,000
133,000
3,000
39,000
Net Investment Purchase And Sale
750,000
-750,000
0
188,000
Sale Of Investment
148,000
54,000
240,000
55,000
Purchase Of Investment
-808,000
-52,000
-52,000
-49,000
Net Business Purchase And Sale
-4,795,000
-1,628,000
-390,000
-2,563,000
Sale Of Business
165,000
0
0
Purchase Of Business
-4,960,000
-1,628,000
-390,000
-2,563,000
Net PPE Purchase And Sale
-761,000
-755,000
-575,000
-588,000
Purchase Of PPE
-761,000
-755,000
-575,000
-588,000
Operating Cash Flow
5,044,000
4,242,000
3,711,000
2,624,000
Cash Flow From Continuing Operating Activities
5,044,000
4,242,000
3,711,000
2,624,000
Change In Working Capital
-373,000
-683,000
-517,000
-1,240,000
Change In Other Working Capital
-470,000
-306,000
-134,000
-107,000
Change In Payables And Accrued Expense
267,000
150,000
589,000
208,000
Change In Accrued Expense
318,000
74,000
516,000
156,000
Change In Payable
-51,000
76,000
73,000
52,000
Change In Account Payable
94,000
192,000
77,000
290,000
Change In Tax Payable
-145,000
-116,000
-4,000
-238,000
Change In Income Tax Payable
-145,000
-116,000
-4,000
-238,000
Change In Inventory
-297,000
-206,000
-797,000
-762,000
Change In Receivables
127,000
-321,000
-175,000
-579,000
Changes In Account Receivables
127,000
-321,000
-175,000
-579,000
Other Non Cash Items
173,000
46,000
-17,000
12,000
Stock Based Compensation
243,000
229,000
205,000
168,000
Asset Impairment Charge
170,000
977,000
36,000
270,000
Deferred Tax
392,000
-370,000
-206,000
58,000
Deferred Income Tax
392,000
-370,000
-206,000
58,000
Depreciation Amortization Depletion
1,193,000
1,050,000
1,028,000
998,000
Depreciation And Amortization
1,193,000
1,050,000
1,028,000
998,000
Amortization Cash Flow
732,000
623,000
635,000
627,000
Amortization Of Intangibles
732,000
623,000
635,000
627,000
Depreciation
461,000
427,000
393,000
371,000
Net Income From Continuing Operations
3,246,000
2,993,000
3,165,000
2,358,000
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $22.4B
Warren's Owner Earnings
$5.2B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$25.1B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.89x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $6.17 to $8.40 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+36.1% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $25.1Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.89xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $6.17 to $8.40 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what SYK is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
10.0%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
23.4%
25.2%
18.2%
24.9%
N/A
Repurchase of Capital Stock
N/A
N/A
N/A
N/A
$0M
Free Cash Flow
$4.3B▲
$3.5B▲
$3.1B▲
$2.0B•
N/A•
Warren's Owner Earnings
$5.2B
$4.8B
$4.8B
$3.9B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare SYK against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
SYK (SYK) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 64.0%. Operating margin: 20.1%. Net margin: 12.9%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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