Stock Analysis on Net

Stryker Corp. (NYSE:SYK)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 29, 2022.

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Stryker Corp., FCFE calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net earnings
Net noncash charges
Changes in operating assets and liabilities
Net cash provided by operating activities
Purchases of property, plant and equipment
Proceeds and payments on short-term borrowings, net
Proceeds from issuance of long-term debt
Payments on long-term debt
Free cash flow to equity (FCFE)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


Net cash provided by operating activities
The net cash provided by operating activities exhibited a generally increasing trend from 2017 through 2021. Starting at $1,559 million in 2017, the cash inflow rose significantly to $2,610 million in 2018. There was a slight decline in 2019 to $2,191 million, followed by a notable recovery reaching a peak of $3,277 million in 2020. The figure remained relatively stable in 2021 at $3,263 million, indicating sustained operational cash generation at a high level compared to earlier years.
Free cash flow to equity (FCFE)
The free cash flow to equity demonstrated more volatility over the period. The value increased sharply from $1,260 million in 2017 to a high of $4,494 million in 2018. However, this was followed by a decrease to $2,835 million in 2019. In 2020, FCFE rebounded to $3,779 million, before declining substantially to $1,585 million in 2021. This fluctuation suggests variations in either capital expenditures, financing activities, or other factors impacting the cash available to shareholders, despite overall strong cash flow from operations.
Overall insights
Operating cash flows show a resilient and improving operational performance with a consistent increase over the five-year period, except for a minor dip in 2019. In contrast, free cash flow to equity is less consistent, with large swings indicating changing investment or financing dynamics that affect shareholder cash returns. The divergence between the relatively stable operating cash flow and volatile FCFE in later years warrants further investigation into capital spending, debt servicing, or dividend policies impacting equity cash flow.

Price to FCFE Ratio, Current

Stryker Corp., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)
FCFE per share
Current share price (P)
Valuation Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors1
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
P/FCFE, Sector
Health Care Equipment & Services
P/FCFE, Industry
Health Care

Based on: 10-K (reporting date: 2021-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Stryker Corp., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2
FCFE per share3
Share price1, 4
Valuation Ratio
P/FCFE5
Benchmarks
P/FCFE, Competitors6
Abbott Laboratories
CVS Health Corp.
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
P/FCFE, Sector
Health Care Equipment & Services
P/FCFE, Industry
Health Care

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =

4 Closing price as at the filing date of Stryker Corp. Annual Report.

5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =

6 Click competitor name to see calculations.


Share Price Trend
The share price displayed a consistent upward trajectory over the five-year period. It increased from $148.01 at the end of 2017 to $251.65 by the end of 2021. The growth was steady year-over-year, with a notable acceleration between 2018 and 2019 and a more moderate increase thereafter.
Free Cash Flow to Equity (FCFE) per Share
FCFE per share exhibited significant volatility during the analyzed period. It started at $3.36 in 2017 and surged sharply to $12.06 in 2018, marking the highest value in the series. Subsequently, it declined to $7.57 in 2019, rose again to $10.05 in 2020, and fell to $4.20 in 2021. This pattern indicates fluctuations in the company’s capacity to generate cash available to equity shareholders.
Price to FCFE (P/FCFE) Ratio
The P/FCFE ratio demonstrated considerable variability, reflecting changes in both market valuation and cash flow generation. It started at a high level of 44.01 in 2017, dropped significantly to 14.99 in 2018 coinciding with the spike in FCFE per share, then increased to 28.84 in 2019. The ratio slightly decreased to 24.42 in 2020 before sharply rising to 59.94 in 2021. This indicates that despite the share price growth, the relative valuation compared to FCFE became more stretched in the final year, likely due to the decline in FCFE per share.