SYK
Stryker Corporation$381.89
Sell
Target $336.02
Report: Mar 07, 2026Healthcare • Medical - Devices • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$381.89-12.0%
Rec: SellConviction: High
Entry Target
N/A
N/A
Fair Value
$336.02
(12% below current)
Stop Loss
N/A
N/A
Position Size
None
Time Horizon
N/A
Key Metrics
Live Snapshot
Market Data
52 Week High$404.87
52 Week Low$319.32
Avg. 3 Month Volume2.08M
Efficiency
LTM Gross Margin64.0%
LTM EBITDA Margin22.2%
LTM EBIT Margin20.4%
LTM Operating Margin19.5%
LTM ROA6.9%
LTM ROE15.0%
LTM ROIC18.6%
LTM ROCE13.3%
Capital Structure
Market Cap (MM)$125.7B
Enterprise Value (MM)$137.6B
Shares Outstanding382.50M
Total Debt (MM)$15.86B
Cash & Equivalents (MM)$4.01B
LTM Net Debt (MM)$11.85B
LTM Net Debt/EBITDA2.1x
Growth
TTM Rev. Growth11.2%
Last 3-Yr Rev. CAGR10.8%
Last 3-Yr EBITDA CAGR22.3%
Last 3-Yr EPS CAGR10.9%
Valuation
Street Target Price$428.67
LTM EV/Revenue5.5x
LTM EV/Gross Profit8.6x
LTM EV/EBIT26.9x
LTM EV/EBITDA24.6x
LTM P/E38.7x
LTM EV/FCF32.1x
LTM P/FCF29.4x
LTM P/TB5.5x
LTM P/B5.6x
Dividend Yield1.0%
Payout Ratio40.0%
Executive SummarySituation: Current price is $381.89 versus fair value $336.02 (-12.0% expected return), and valuation confidence is stable. Debate: Bull case depends on Full Market Release of Mako Shoulder and Mako Spine Stryker is expanding its robotic platform into shoulder and spine procedures, which should drive incremental implant volume and reinforce the 'razor-and-blade' model. Bear case centers on Tariff Escalation and Gross Margin Compression Stryker faces an estimated $400 million in tariff costs in 2026, which could permanently impair gross margins if the company cannot pass these costs through to hospitals. Conclusion: Recommendation is Sell with no position, pending a materially better risk/reward setup.
Bull Case
The Mako robotic platform creates high switching costs and a recurring revenue stream that is decoupled from macro cycles; international expansion in emerging markets and Japan offers a long runway for 10%+ organic growth.
Bear Case
Valuation is at a historical peak while EPS guidance has missed for five consecutive years; $400 million in tariff headwinds and 70.7% debt-to-equity leverage limit the company's ability to fund future accretive M&A.
Key Catalysts
Near-Term (0-6 months)Impact: High
Full Market Release of Mako Shoulder and Mako Spine Stryker is expanding its robotic platform into shoulder and spine procedures, which shou...
Mid-Term (6-18 months)Impact: Moderate
Inari Medical Integration and Peerless 2 Clinical Data The successful integration of Inari and positive clinical data for the Peerless 2 tri...
Long-Term (18+ months)Impact: Moderate
Stryker is at a critical juncture as it integrates its largest acquisition to date (Inari) while simultaneously navigating a $400 million ta...
Primary Risks
Concern: High
Tariff Escalation and Gross Margin Compression Stryker faces an estimated $400 million in tariff costs in 2026, which could permanently impa...
Concern: Medium
M&A Integration and Leverage Risk The aggressive acquisition strategy has pushed debt-to-equity to 70.7% and net debt to $11,848 million. A...
Concern: Medium
Stewardship is currently rated as 'Adequate' but declining. While the board features high-quality independent directors like Andrew Silverna...
Recent Activity
2026-01-06Analyst Target
+5.05%Firm: Raymond James Price Target: $418.00 Price When Posted: $348.79 Implied Upside: +19.8%
2024-01-31SEC Filing (8-K)
+5.95%Stryker reports 2023 operating results and 2024 outlook
2023-02-01SEC Filing (8-K)
+9.91%Stryker reports 2022 operating results and 2023 outlook
Valuation Table
9.8/10Decision Grade
Scenario Range
$236
Bear
$363
Base
$456
Bull
$382