Stryker Corp (SYK, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial position. With its shares currently priced at $336.78, Stryker Corp has experienced a daily gain of 0.37%, despite a three-month change of -3.96%. A detailed analysis, supported by the GF Score, indicates that Stryker Corp is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Stryker Corp boasts a GF Score of 95, indicating a top-tier potential for market outperformance.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Understanding Stryker Corp's Business
Stryker Corp designs, manufactures, and markets a diverse range of medical equipment, instruments, consumable supplies, and implantable devices. Its product portfolio includes hip and knee replacements, endoscopy systems, operating room equipment, embolic coils, hospital beds, and spinal devices. Stryker is a leading competitor in reconstructive orthopedic implants and dominates the operating room equipment sector. Approximately a quarter of its revenue is generated outside the United States. With a market cap of $128.3 billion and annual sales of $20.96 billion, Stryker maintains an operating margin of 19.76%.
Financial Strength Breakdown
Stryker Corp's robust balance sheet demonstrates resilience against financial volatility, reflecting prudent capital management. With an Altman Z-Score of 5.41, the company shows a strong defense against financial distress. Additionally, its favorable Debt-to-Revenue ratio of 0.61 further solidifies its financial health.
Profitability and Growth Metrics
Stryker Corp stands out for its profitability, with a high Profitability Rank and a Piotroski F-Score that confirms its solid financial condition. The company's commitment to growth is evident in its impressive Growth Rank. Over the past three years, Stryker has achieved a revenue growth rate of 12.3%, outperforming 62.62% of its peers in the Medical Devices & Instruments industry.
Conclusion
Considering Stryker Corp's strong financial strength, impressive profitability, and robust growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
