NYSE · Healthcare

Stryker Corporation

SYK · Medical Devices

$307.80

▲ 6.66 (2.21%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 63.3%

Operating Margin 15.5%

Net Income Margin 12.4%

Fin. Health

D⤢

Years to Pay Off Debt 19.8 yrs

Working Capital vs Long-Term Debt -$7.2B

Working Capital $7.0B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 5.14x

Cash Flow

B⤢

Free Cash Flow $415M

CapEx % of Net Income 22.3%

Owner Earnings $1.2B

Profitability

Gross Profit Margin 63.3%

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 15.5%

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 12.4%

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

Years to Pay Off Debt 19.8 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 -$7.2B

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.

Cash Flow

Free Cash Flow $415M

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 22.3%

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 $1.2B

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.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Stryker Corporation

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.

Market Data

Market Cap $118.0B

Enterprise Value $131.3B

P/E (TTM) 35.67

Dividend Yield 1.14%

Exchange NYSE

Key Margins

Gross Profit 63.3%

Operating Margin 15.5%

Net Margin 12.4%

Company Info

Sector Healthcare

Industry Medical Devices

Employees 56000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Stryker Corporation at $307.80.

The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.

At $307.80, the stock trades at a 503% premium to its Graham Number of $51.02. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	63.3%▼	64.5%
Operating Margin %	15.5%▼	25.3%
Net Income %	12.4%▲	11.8%
Diluted EPS	1.93▼	2.20

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$46.3B	$47.8B	N/A
Total Debt	$14.7B▼	$15.9B•	N/A
Working Capital	$7.0B▲	$7.0B•	N/A
Years to Pay Debt	19.76	18.68	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$415M▼	$1.9B•	N/A
Owner Earnings	$1.2B	$1.4B	N/A
CapEx % of Net Income	22.3%	31.6%	N/A

Income Statement

	2026	2025
Tax Effect Of Unusual Items	0	-1,470
Tax Rate For Calcs	0	0
Normalized EBITDA	1,298,000	2,196,000
Total Unusual Items	0	-7,000
Total Unusual Items Excluding Goodwill	0	-7,000
Net Income From Continuing Operation Net Minority Interest	745,000	849,000
Reconciled Depreciation	300,000	316,000
Reconciled Cost Of Revenue	2,090,000	2,416,000
EBITDA	1,298,000	2,189,000
EBIT	998,000	1,873,000
Net Interest Income	-148,000
Interest Expense	148,000
Normalized Income	745,000	854,530
Net Income From Continuing And Discontinued Operation	745,000	849,000
Total Expenses	5,084,000	5,360,000
Total Operating Income As Reported	936,000	1,804,000
Diluted Average Shares	386,500	386,500
Basic Average Shares	382,900	382,500
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	745,000	849,000
Net Income Common Stockholders	745,000	849,000
Net Income	745,000	849,000
Net Income Including Noncontrolling Interests	745,000	849,000
Net Income Continuous Operations	745,000	849,000
Tax Provision	105,000	856,000
Pretax Income	850,000	1,705,000
Other Income Expense	62,000	501,000
Other Non Operating Income Expenses	62,000	508,000
Special Income Charges	0	-7,000
Impairment Of Capital Assets	0	7,000
Net Non Operating Interest Income Expense	-148,000
Interest Expense Non Operating	148,000
Operating Income	936,000	1,811,000
Operating Expense	2,874,000	2,817,000
Depreciation Amortization Depletion Income Statement	180,000	189,000
Depreciation And Amortization In Income Statement	180,000	189,000
Amortization	180,000	189,000
Amortization Of Intangibles Income Statement	180,000	189,000
Research And Development	413,000	401,000
Selling General And Administration	2,281,000	2,227,000
Gross Profit	3,810,000	4,628,000
Cost Of Revenue	2,210,000	2,543,000
Total Revenue	6,020,000	7,171,000
Operating Revenue	6,020,000	7,171,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	383,361	382,500
Share Issued	383,361	382,500
Net Debt	11,845,000	11,848,000
Total Debt	14,723,000	15,859,000
Tangible Book Value	-1,725,000	-2,552,000
Invested Capital	37,702,000	38,279,000
Working Capital	7,023,000	6,961,000
Net Tangible Assets	-1,725,000	-2,552,000
Common Stock Equity	22,979,000	22,420,000
Total Capitalization	37,203,000	37,279,000
Total Equity Gross Minority Interest	22,979,000	22,420,000
Stockholders Equity	22,979,000	22,420,000
Gains Losses Not Affecting Retained Earnings	-583,000	-687,000
Other Equity Adjustments	-583,000	-687,000
Retained Earnings	20,878,000	20,472,000
Additional Paid In Capital	2,646,000	2,597,000
Capital Stock	38,000	38,000
Common Stock	38,000	38,000
Total Liabilities Net Minority Interest	23,312,000	25,424,000
Total Non Current Liabilities Net Minority Interest	16,997,000	17,630,000
Other Non Current Liabilities	2,370,000	2,369,000
Tradeand Other Payables Non Current	403,000	402,000
Long Term Debt And Capital Lease Obligation	14,224,000	14,859,000
Long Term Debt	14,224,000	14,859,000
Current Liabilities	6,315,000	7,794,000
Current Debt And Capital Lease Obligation	499,000	1,000,000
Current Debt	499,000	1,000,000
Other Current Borrowings		1,000,000	1,409,000
Pensionand Other Post Retirement Benefit Plans Current	885,000	1,595,000
Payables And Accrued Expenses	4,931,000	5,199,000
Current Accrued Expenses	2,526,000	2,645,000
Payables	2,405,000	2,554,000
Dividends Payable	337,000	337,000
Total Tax Payable	476,000	418,000
Income Tax Payable	476,000	418,000
Accounts Payable	1,592,000	1,799,000
Total Assets	46,291,000	47,844,000
Total Non Current Assets	32,953,000	33,089,000
Other Non Current Assets	3,169,000	3,143,000
Non Current Deferred Assets	1,193,000	1,098,000
Non Current Deferred Taxes Assets	1,193,000	1,098,000
Goodwill And Other Intangible Assets	24,704,000	24,972,000
Other Intangible Assets	5,516,000	5,681,000
Goodwill	19,188,000	19,291,000
Net PPE	3,887,000	3,876,000
Accumulated Depreciation	-3,743,000	-3,661,000
Gross PPE	7,630,000	7,537,000
Machinery Furniture Equipment	5,835,000	5,744,000
Properties	1,795,000	1,793,000
Current Assets	13,338,000	14,755,000
Other Current Assets	1,383,000	1,306,000
Inventory	5,419,000	5,310,000
Finished Goods	3,511,000	3,546,000
Work In Process	435,000	415,000
Raw Materials	1,473,000	1,349,000
Receivables	3,571,000	4,039,000
Accounts Receivable	3,571,000	4,039,000
Allowance For Doubtful Accounts Receivable	-225,000	-216,000
Gross Accounts Receivable	3,796,000	4,255,000
Cash Cash Equivalents And Short Term Investments	2,965,000	4,100,000
Other Short Term Investments	87,000	89,000
Cash And Cash Equivalents	2,878,000	4,011,000

Cash Flow

	2026	2025	2024
Free Cash Flow	415,000	1,875,000
Repayment Of Debt	-1,000,000	-750,000
Issuance Of Debt	0	0
Capital Expenditure	-166,000	-268,000
End Cash Position	2,878,000	4,011,000
Beginning Cash Position	4,011,000	3,256,000
Effect Of Exchange Rate Changes	-19,000	10,000
Changes In Cash	-1,114,000	745,000
Financing Cash Flow	-1,510,000	-1,093,000
Cash Flow From Continuing Financing Activities	-1,510,000	-1,093,000
Net Other Financing Charges	-173,000	-21,000
Cash Dividends Paid	-337,000	-321,000
Common Stock Dividend Paid	-337,000	-321,000
Net Issuance Payments Of Debt	-1,000,000	-751,000
Net Short Term Debt Issuance		-1,000	0
Net Long Term Debt Issuance	-1,000,000	-750,000
Long Term Debt Payments	-1,000,000	-750,000
Long Term Debt Issuance	0	0
Investing Cash Flow	-185,000	-305,000
Cash Flow From Continuing Investing Activities	-185,000	-305,000
Net Other Investing Changes	1,000	-19,000
Net Investment Purchase And Sale	2,000	-8,000
Sale Of Investment	7,000		9,000
Purchase Of Investment	-5,000		-17,000
Net Business Purchase And Sale	-22,000	-10,000
Purchase Of Business	-22,000	-10,000
Net PPE Purchase And Sale	-166,000	-268,000
Purchase Of PPE	-166,000	-268,000
Operating Cash Flow	581,000	2,143,000
Cash Flow From Continuing Operating Activities	581,000	2,143,000
Change In Working Capital	-560,000	709,000
Change In Other Working Capital	-25,000	-97,000
Change In Payables And Accrued Expense	-852,000	1,127,000
Change In Accrued Expense	-654,000	396,000
Change In Payable	-198,000	731,000
Change In Account Payable	-198,000	299,000
Change In Tax Payable		432,000	120,000
Change In Income Tax Payable		432,000	120,000
Change In Inventory	-127,000	76,000
Change In Receivables	444,000	-397,000
Changes In Account Receivables	444,000	-397,000
Other Non Cash Items	42,000	13,000
Stock Based Compensation	87,000	48,000
Asset Impairment Charge	0	7,000
Deferred Tax	-33,000	201,000
Deferred Income Tax	-33,000	201,000
Depreciation Amortization Depletion	300,000	316,000
Depreciation And Amortization	300,000	316,000
Amortization Cash Flow	180,000	189,000
Amortization Of Intangibles	180,000	189,000
Depreciation	120,000	127,000
Net Income From Continuing Operations	745,000	849,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $5.9B ▲ $6.0B +2.6%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 63.8% ▲ 63.3% -0.5pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 16.0% ▲ 15.5% -0.4pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 11.1% ▲ 12.4% +1.2pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$6.0B/qtr (≈$24.1B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

2.11x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$415M

vs Positive

Operating Cash Flow

$581M

Latest quarter · Buffett's cash reality check

ROIC

1.8%

Based on latest annual operating income

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.

Market Cap / Net Assets

5.1x

Net Assets: $23.0B

Peers & Industry Comparison

Medical Devices — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
SYK	$307.80	$118.0B	35.67	63.3%	12.4%	$6.0B
MDT Medtronic plc.	$79.34	$101.9B	21.0	65.4%	13.2%	$36.4B
ABT Abbott Laboratories	$88.41	$154.0B	24.8	56.5%	13.9%	$45.1B
BSX Boston Scientific Corporation	$45.29	$67.3B	18.9	68.9%	17.3%	$20.6B
EW Edwards Lifesciences Corporatio	$87.36	$50.3B	47.2	77.9%	17.4%	$6.3B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

5.37%

Moderate — some alignment with shareholders

Return on Equity (ROE)

3.2%

Weak — poor returns on equity

Return on Assets (ROA)

1.6%

Poor — assets are not generating adequate returns

Debt Trend YoY

-7.2% YoY

Debt is declining — management is deleveraging

Leadership Team

Kevin Lobo

Chairman & CEO

Age 60

Pay: $4,716,578

0.633% of net income

Spencer Stiles

President & COO

Age 48

Pay: $1,740,581

0.234% of net income

Preston Wells

VP & CFO

Age 48

Pay: $1,488,921

0.200% of net income

Viju Menon

Group President of Global Quality & Operations

Age 57

Pay: $1,420,476

0.191% of net income

Andrew Pierce

Group President of MedSurg & Neurotechnology

Age 51

Pay: $1,734,729

0.233% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	7.20%	27,602,049
Vanguard Capital Management LLC	5.84%	22,383,181
Greenleaf Trust	4.16%	15,938,070
JPMORGAN CHASE & CO	4.07%	15,596,897
State Street Corporation	4.00%	15,349,165
Price (T.Rowe) Associates Inc	2.62%	10,037,137
Vanguard Portfolio Management LLC	2.17%	8,334,244
Wellington Management Group, LLP	2.12%	8,121,707

Risk Analysis

Beta (Market Risk)

0.79

Low volatility — more stable than the market

Short Interest

1.7% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.66x

Conservative balance sheet — low financial risk

Current Ratio

2.11x

Strong liquidity — Graham approved

52-Week Price Range

Low: $281.00 Current: $307.80 High: $404.87

Currently at 22% of 52-week range

Stryker Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis