Company Overview
Stryker sells medical technology used in hospitals and clinical settings, spanning equipment and devices used in patient care. The business is built around supplying healthcare providers with products that are integrated into everyday procedures and workflows. With a market value of about USD 125.3 billion, it operates at a scale that typically comes with broad product reach and deep customer relationships.
Analysis of recent data
FundamentalsIn 2025, reported in USD, revenue reached about USD 25.1 billion, rising 11.2% year over year, alongside EBIT of roughly USD 4.9 billion. Profitability sat on a high gross margin of 64.57% and an operating margin of 19.43%, with ROE at 15.04% over the trailing period.
Cash generation, using the provided proxy that adjusts EBIT for tax, adds back depreciation and amortization, and subtracts capital spending, came in at about USD 3.3 billion. Depreciation and amortization were USD 461 million and capital expenditure was USD 761 million, while the balance sheet showed USD 4.0 billion of cash against USD 14.9 billion of total debt.
Valuation
DCF / MultiplesAt USD 327.44, the stock sits above the central DCF estimate of USD 264.71, while remaining below the stronger-outcome value of USD 394.07 and well above the weaker scenario of USD 158.09. That pricing also lines up with demanding headline multiples, including a 38.68 P/E and 23.85 EV/EBITDA.
Conclusion
TakeawayThe price assumes capital returns stay comfortably elevated. That’s not obviously supported by the returns picture today. Margins and cash generation need to keep compounding. Debt can tighten the room for error if cash softens. The mispricing risk looks skewed to optimism.