SYK
Stryker Corporation
Healthcare · Medical Devices · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong dividend and financial health scores, supported by a 39.6% payout ratio and a debt-to-equity of 0.71, anchored the composite score at a meaningful level.
- Solid but not top-tier revenue growth of +11.2% and EPS growth of +8.2% contributed mid-range growth factor points, keeping the total score in the moderate range.
- The low momentum score driven by the anomalous 2025Q4 data and the zero contribution from the macro theme assignment weighed on the composite, resulting in a total of 56.0/100.
Why Not Higher
- The anomalous negative revenue and net income figures in 2025Q4 severely suppressed the momentum score, which was a meaningful drag on the composite despite stable results in surrounding quarters.
- The Aging Population macro theme assignment scored zero under the model's current methodology, meaning a relevant macro tailwind provided no uplift to the total score.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $22,595,000,000 to FY2025's $25,116,000,000, a gain of +11.2%. Net income rose +8.5% over the same period, and diluted EPS increased +8.2% from FY2024 to FY2025.
The model rewarded consistent top-line and bottom-line expansion across FY2024 to FY2025, though the mid-range score suggests the growth rates, while solid, did not reach the highest tier thresholds in the model's methodology.
In FY2025, Stryker posted an operating margin of 19.5%, a net margin of 12.9%, and a return on assets of 6.8%.
The model recognized meaningful operating efficiency and a double-digit net margin in FY2025, while the return on assets figure suggests the asset-heavy nature of the business moderates the overall profitability score.
In FY2025, Stryker carried a debt-to-equity ratio of 0.71 and an interest coverage ratio of 8.4, against a total asset base of $47,844,000,000.
The model rewarded a manageable leverage level and comfortable interest coverage in FY2025, indicating the company generates sufficient operating income relative to its debt obligations, which supported a above-midpoint financial health score.
Quarterly revenue was relatively stable at $6,022,000,000 in 2025Q2 and $6,057,000,000 in 2025Q3, but reported as -$10,774,000,000 in 2025Q4, before returning to $6,020,000,000 in 2026Q1. Net income similarly showed a large negative figure of -$1,548,000,000 in 2025Q4, flanked by positive results in surrounding quarters.
The anomalous negative revenue and net income figures in 2025Q4 would have severely disrupted any trend-based momentum calculation, likely driving the low score regardless of the otherwise stable surrounding quarters.
In FY2025, Stryker's dividend payout ratio was 39.6% of net income.
A payout ratio of 39.6% in FY2025 signals that the company returns a meaningful portion of earnings to shareholders while retaining sufficient capital for reinvestment, a balance the model rewarded with a near-maximum dividend score.
Stryker is assigned to the Aging Population macro theme.
While the Aging Population theme is a recognized macro tailwind relevant to Stryker's medical device business, the assignment did not translate into a score under the model's current methodology, suggesting the theme scoring component may require additional criteria beyond assignment alone.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Stryker Corporation posted solid revenue growth of +11.2% from FY2024 to FY2025, reaching $25,116,000,000, alongside net income growth of +8.5% and a near-maximum dividend score supported by a 39.6% payout ratio. Profitability metrics were meaningful, with a 19.5% operating margin and 12.9% net margin in FY2025, while financial health was supported by a debt-to-equity ratio of 0.71 and interest coverage of 8.4. The composite score of 56.0/100 with a Medium risk rating and a 'Research Further' label reflects a company with genuine fundamental strengths tempered by a severely disrupted momentum score driven by anomalous quarterly data and a macro theme assignment that did not contribute to the model score.
Plain English
Stryker is a medical device company that grew revenues and profits solidly in FY2025, pays a reasonable dividend, and keeps its debt manageable, but some strange negative numbers in one quarter hurt its momentum score and dragged the overall rating to a middle-of-the-road 56 out of 100.
Bull Case vs. Bear Case
Bull Case
- Revenue expanded from $22,595,000,000 in FY2024 to $25,116,000,000 in FY2025, a gain of +11.2%, demonstrating consistent top-line growth that the model rewarded.
- Stryker's dividend payout ratio of 39.6% in FY2025 signals a disciplined balance between returning capital to shareholders and retaining funds for reinvestment, earning a near-maximum dividend score.
- A debt-to-equity ratio of 0.71 and interest coverage of 8.4 in FY2025 indicate manageable leverage and comfortable ability to service debt obligations from operating income.
Bear Case
- Anomalous negative revenue of -$10,774,000,000 and net income of -$1,548,000,000 reported in 2025Q4 severely disrupted trend-based momentum calculations, resulting in a low momentum score regardless of otherwise stable surrounding quarters.
- Return on assets of 6.8% in FY2025 reflects the asset-heavy nature of the medical device business, moderating the overall profitability score despite solid margins.
- The Aging Population macro theme assignment did not translate into any model score contribution, meaning a recognized tailwind for Stryker's business provided no composite score benefit under the current methodology.
What Could Change the Picture
Bullish Triggers
- Clarification or restatement of the anomalous 2025Q4 figures that resolves the negative revenue and net income data could substantially improve the momentum score and lift the composite rating.
- If operating margin of 19.5% and net margin of 12.9% continue to expand in future periods, the profitability factor could move higher and further support the composite score.
Bearish Triggers
- If the anomalous 2025Q4 figures reflect a real economic event rather than a data artifact, the underlying business momentum may be weaker than the surrounding quarters suggest.
- Sustained asset-heavy investment that keeps return on assets near 6.8% without corresponding margin improvement could limit future profitability score gains.
Risk Profile
Medium RiskStryker's financial health appears manageable with a debt-to-equity ratio of 0.71 and interest coverage of 8.4 in FY2025, suggesting the company can comfortably service its debt. However, the anomalous negative revenue and net income figures in 2025Q4 introduce uncertainty into near-term momentum assessment and warrant further investigation before drawing firm conclusions.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.